The most successful investors know how to effectively talk to motivated sellers they know how to listen, build a relationship of trust and they know the right questions to ask and most importantly they know how to find the motivation seller and then offer solutions.
But becoming a master at it doesn’t happen overnight but it does happen over time and with practice. So in today’s video I want to share with you the top four solutions that you can provide a motivated seller and how to construct a perfect motivated seller script.
Hi it’s Jerry Norton, if you’re new here to make more money in less time flipping real estate so you can live your dream life.
One of the greatest blessings in my life was being able to serve a two-year religious proselyting mission for my church in Argentina when I was 19 years old. Now ,not only that I learned to talk to complete strangers, but I’ve learned how to do it in Spanish then in the beginning I was terrified but over time it got easier and easier.
Later when I started doing real estate, I already felt comfortable talking to strangers which helped me tremendously and I learned some valuable lessons along the way. This video will help you master the skill of talking to people but make no mistake the only way to get better is to just do it.
Think about it this way call number one is going to suck and it will be terrible but call number 1,000 is gonna be awesome an expert level but you can’t get to call number a thousand until you do call number one.
Never forget imperfect action is always better than perfect in action, so what is the perfect script for talking to motivated sellers? I have to tell you this but there is no perfect script. There is no one-size-fits-all because every person is different. Now before you click away here’s the good news, once you understand how to provide solutions to sellers problems. You are able to custom tailor the perfect script for each person you talk to.
Finding The Motivated Seller
First and foremost your job is not to create motivation but rather to find already motivated sellers. Your job isn’t to convince someone that they should sell you their property at a discount, but rather find people who already are willing to sell their property at a discount knowing this makes your job a hundred times easier.
Your number one objective is to find the motivation. I call this the sellers hot button. Always ask yourself is there a hardship that this property is causing the seller, and if so what solution can I provide? Never forget a motivated seller will gladly trade equity for peace of mind.
Four Major Benefits
When you’re talking to a seller there are four major benefits that you provide that can solve their most common problems but Tribute each and then put it all together and create a killer script.
First Solution Offer All Cash
The first solution you offer is all cash. Now all cash doesn’t mean that you have a suitcase of $100 bills, it means there is no financing contingency or in other words you don’t need to qualify for traditional financing for a motivated seller, and all cash offer removes the uncertainty of you not being able to obtain the financing.
It reassures him or her that you can close on time and the funds will be there if the property is in poor condition it won’t qualify for traditional bank financing anyways and the sellers only option is to find a cash investor.
When talking to a seller you have to find out how important is all cash. If it’s not at all important consider offering seller financing.
Second Solution: Provide The Seller With A Quick Closing!
The second solution you provide as an investor is to close quickly, this usually goes right along with an all-cash offer in some cases the seller is facing a deadline where they desperately need to close. Maybe they need to cash from the sale to pay off a dead or stop the bleeding or expenses that are accruing or in the event of the foreclosure they need to close before the property goes to foreclosure auction.
Now a typical closing is 30 days from executing the contract but when talking to the seller find out how important is it to closed by a certain date the more urgent it is to close sooner than 30 days the bigger the solution you provide when offering a seller to close quickly it would sound like this, “Mr. Seller since I have the funds ready right now we don’t have to wait and can close on the sale as fast as you want to.”
Third Solution You Are Buying The Property In Its “as is” condition.
Now the third solution you provide as an investor is to purchase the property in it’s “as is” condition this means unlike a retail buyer you’re not going to ask the seller to make any improvements to the property. This can be a huge benefit to a motivated seller who has a distressed property and can’t or doesn’t want to put any money into the property.
In order to sell it when talking to the seller find out how important is it to the seller that he or she doesn’t have to make any repair it would sound like this “Mr. Seller as an investor I will purchase your property exactly how it is that means unlike most buyers with me you don’t have to spend a dime fixing anything.”
Now the first solution offered motivated seller is that you will pay all of the cost to sell the home with the exception of any outstanding liens or back taxes. Again, the benefit is the seller doesn’t have to come out of pocket to sell the property.
If the seller is living in the home you may decide to take this an extra step and offer to pay for packing up their belongings a moving service even the deposit and/or first month’s rent to relocate of course these additional fees need to be factored into the deal.
But, when talking to the seller find out how important is it to the seller that they don’t pay any fees to sell you their property. Pro-tip here, if there are liens or back taxes that will need to be satisfied from the proceeds at closing.
I always try to get some cash to the seller, now the numbers have to work out obviously, but I found that if I can get five or ten thousand dollars in cash in the seller’s pocket at closing.
The deal goes much smoother when talking to the seller it would sound like this “Mr. Seller unlike with most buyers I will pay all of the closing costs associated with selling the property so it won’t cost you anything and to help you get a new start in life, I will even pay for a packing and moving service and your first month’s rent. I’ve even secured a home for you that fits your budget and your needs okay?”
Now, let’s put it all together and create the perfect script. ” Mr. Seller to recap everything we’ve discussed, I’m offering you all cash for your property which means I don’t need to qualify for bank financing, I can close as fast as you want to. So you don’t have to wait to get paid, and I’ll even buy your home “as is” and pay all of the closing costs so you don’t have to do a thing and it won’t cost you a dime to sell me your home. How does that sound?”
As found on Youtube