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5 Tips for Speaking with Motivated Sellers

5 Tips for Speaking with Motivated Sellers

Getting a motivated seller on the phone can create a win, but it’s all about how you communicate with the person. It doesn’t have to be intimidating or stressful, but it can be if you aren’t prepared. Real estate is a people business and building a network of people increases your opportunity for future wins! To be better prepared, consider the following five points:

Communication

1.Start the conversation off with a greeting.

Ask them how they are and make it more personable than inquisitive. You’ll want to come off warm so they open up and get honest with you as this relationship could lead to more deals down the line. You’ll want to keep your conversations simple and open, paying attention to what their goals are with the property.

Problem Solving

2.Find out why they’re selling.

Everyone is motivated by something different. The motivation can be something serious like a death in the family or something light like a simple relocation. It’s important to take your time with this and to really understand their motivation because their answers can open the conversation up to a lot of opportunities.  Listening is critical and if you’re paying attention to their words, you can identify solutions.

Maintenance

3.Find out if there has been any maintenance or repairs done on the property. 

You’ll want to know the condition of the property before making a commitment to see it. Keep in mind, owners often overestimate the value of their home. They may think it looks great but the answer to this question can give you more clarity on the condition. You’ve probably heard some investors do not care and purchase sight unseen, this is something to consider when you’re prepared to make an offer. If you’ve done your homework, you will know what the market value is and the potential ROI on the property ONLY if you have run the numbers to see where your maximum offer would be.

Home Loan

4.Find out what’s owed on the property, mortgage, taxes, any liens. 

This will help you understand if there is an opportunity for creative financing, as well as whether you must deal with the bank directly, whether you need to get creative on the negotiation side with a third party, and what other opportunity exists beyond the physical. You’ll want to have as much information on things outside of the owners control as that could be passed along to you in some cases related to the property.

Credit Report

5.Get their contact information.

You want to make sure you get their name, phone number, email address and property address. Getting the address will help to do your due diligence by confirming the details of the property. Their contact information is important in staying in touch but also so you can add them to your client relationship manager (CRM) for future investment opportunities and referrals.  There are several products out there for investors depending on your needs and growth.

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With the above bullet points, you’ll be able to determine if the deal makes sense for you before wasting time visiting a place that may not be worthwhile. Use your judgement, speak clearly and effectively, and you’ll start to, at the very least, increase your confidence level when conversing with sellers so that you’ll be even more prepared for the next time. If this deal doesn’t work, that’s okay because there are more opportunities waiting for you. Always remember time is money, use it wisely.

Once you’ve obtained the above information and have determined whether it’s a deal for you, it’s time to see the property. When you visit the property, be sure to take with you a contract or letter of intent so you can make an offer on the spot. You don’t want to miss the opportunity if it really is a deal.

Areas of Review

Takeaway

Big picture takeaway points

  1. Real estate is a people business and effective communication is a must.
  2. Due diligence is required both before and after speaking with the seller.

Reflection

Self-reflection questions to think more about the content

  1. These are the things I would want to know before speaking with a seller…
  2. These are the things I would ask the seller…
  3. How do I plan to keep in touch with this seller?

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