Understanding The Seller: Keys To A Successful Transaction
By JD Esajian on November 15, 2013
Real estate deals are often gained or lost based on how you talk to the seller. You may have the best option for them, but if you turn them away with your presentation, they will surely look elsewhere. While many investors follow a script, the addition of a curve ball or unexpected scenario can throw them off. Deviation from the plan, which happens quite frequently, may be all that is required to lose a deal. Being prepared and having an idea of what you are going to say is important, but when dealing with sellers, it is more about what they have to say and if you really listen to the answers.
It is important to realize that your seller most likely does not want to depart from their property. There is a chance that they are being forced out by extenuating circumstances. If you are trying to work a deal; it most likely means they are either late on their mortgage, are already in foreclosure or were forced to sell for another reason. If you come into the conversation or lead generation process asking about the property and how much they want for it, you are starting things off on the wrong foot. Find out about their situation first and what their expectations are for the process. You can save a lot of time by asking these two simple questions.
If they have unrealistic expectations regarding the price or time, you should be prepared to fully explain the process from beginning to end. They will ask you why you are doing it and what you stand to make. Be as direct as possible. You don’t have to tell them exactly what you plan to make, but don’t ignore the question either. Yes, you are looking to sell at a profit, but there is a lot of money that will be risked before that happens. Regardless if they are walking away with any money or not, the seller still wants to someone they fell comfortable with and trust.
You can’t expect your seller to have answers tailored to your schedule. If you push them for answers or commitments right after you meet with them, you are sure to lose them. You can’t let them drag their feet, but you have to understand what they are going through and give them a little space. That being said, you should give them a timeline for how things will go as soon as they show any interest in selling. Don’t try to deceive them. You will find that if you do, you will lose them the closer you get to closing. Not only will they not appreciate being lied to, but they may have made plans based on dates you gave them.
Even if they are going through foreclosure or a short sale, the seller never really has to sell. Even though they will lose their home if they don’t act, they can possibly make an 11th hour plea to a judge for another extension. Try explaining the process instead of threatening your seller with it. Threats come across as desperate and no seller wants to feel as if they are forced to make a decision.
The quicker you can understand what they are thinking and what they want, the more successful the transaction will be. Take the time and listen to what they say instead of trying so hard to follow your script.