I’m Not Just A Number! The Art of Knowing & Understanding a Seller
The more investors I talk with the more I am convinced that the lost art of conversing and getting to understand a seller and their needs has been replaced with handing over complicated forms and giving low-ball offers. It seems in this fast-paced, digitalized, G4 world, we have forgotten how to make friends before making the deal.
The first 19 appointments I ever met with sellers and toured their homes took no shorter than 4 hours every time. Why? I loathed the “closing” point of every sale. I would keep delaying the “Can I buy your home?” question by continuing to ask more and more questions of the sellers, both business and personal questions. I ended up buying 11 clean, cash-flowing mobile homes in less than 7 months. _ How was I able to buy so many without using cash or credit?_
“Whoever controls the questions controls the conversation.” Ask questions and listen for the answers. These heart to heart “Question and Answer” sessions really opened-up sellers to revealing the real rock bottom prices they will accept, or the least interest rate a seller will collect to carry back financing, if he is willing to sell the home “subject to” the existing mortgage.
Over the next few months I became more and more comfortable, more and more proficient. I then realized it was taking me more appointments to close the same amount of deals. In other words I was getting worse at being an investor. I realized, by trial and error that because I was so comfortable buying, holding and selling homes I was taking my sellers for granted. I was starting to see my sellers as big dollar signs rather than people. People with problems, dreams, and concerns.
Here is how I started to sabotage my own success:
- I started cutting off a seller mid-sentence, talking about trivial objections. Here is a tip: Count to three in your head after the seller stops talking and then you can begin talking.
- I would quickly correct a seller’s wrong statement to show him how much I knew about real estate. Wait until the seller is finished talking to discuss any wrong information the seller may be holding. Never argue with the seller.
- I would only make one or two offers max. (Instead of my usual four creative offers method.) I began thinking I knew what was best for the seller. I began to half-ass my efforts in my day to day investing life.
It did not take long to realize the problem was me. I now spend less than one hour meeting with most sellers; we talk about family and social events, discuss the seller’s problems, create a few Win-Win solutions, present offers, make slight changes, make a deal, sign paperwork, answer questions and leave.
Bottom line: Do not became too comfortable and close the door to friendship, cooperation and making Win-Win deals with sellers. Always keep your seller’s MINIMUM goal in mind when you are making offers. Remember without solving the seller’s problem you will never create a deal.
Happy Investing
– J. fed
Photo: Jim Legans