Motivated Sellers

Bird Dogs, Wholesaling
1

Do you even try to convince Sellers to agree to your offer? How much objections are you willing to overcome before you decide to let it go and move on to the next?

I just want to start this topic for the benefit of the newbies. As a wholesaler, I find it very important to understand determining Seller Motivation as part of succeeding in this game. A lot of beginners are concern about locking the deal, closing and getting paid before even looking at this first step.

Anyone is welcome to make their comments.

2

That’s a fantastic question…!

There are so many approaches to this issue that it seems to depend on the personality of the negotiator.

As far as I’m concerned confidence in yourself trumps about everything.

Becoming confident involves several things not the least of which is knowing your market, knowing your price limits, and knowing where you’re headed in the negotiations.

Shooting from the hip is the pits.

I used to filter the prospects for motivation over the phone, thinking this was a way to limit my valuable time to motivated sellers.

Well, motivated sellers will lie over the phone about their motivation. So will unmotivated sellers.

So, I pay no attention until I’ve got the sellers in front of me.

Now, this doesn’t mean I don’t sift the sellers that call me. I check their property data before I show up at the door. If their property doesn’t meet my requirements I cancel the appointment.

Which brings me to mention that I want sellers to call me. It puts me in a position of strength. When I show up to meet the seller, I’m considered a guest, not an intruder.

Getting sellers to call us is a whole nother post.

Meantime, it’s a mistake to try to “convince” someone to accept our offers.

If we’re just paying cash, and not attempting anything creative with the financing, our negotiations are fairly straightforward.

After I’ve talked with the seller for 30 minutes, or so, I know what is motivating him, if anything besides checking the market temperature, and then I show him what he’d get in a conventional transaction.

Most sellers have never been through an analysis of what it costs to sell through an agent. It’s often more than 10% of their asking price, not the six, or five, or whatever percent the agent charges for his fee.

Then it’s basically “start lower than where you want to ‘end up,’ and then end up exactly halfway between where you started and where the seller started, or ‘Here’s my price. Works for you, or not? What will work?’”

I think that Pawn Stars really illustrates the cash negotiations really well.

When it comes to making creative financing offers, this is a horrible approach.

3

Why, thank you for sharing your wisdom, Javipa.

I like that you care enough to educate them about what they’re getting into. That says a lot about you as a person.

You’re absolutely right about everything you said. It’s amazing how when you genuinely care for another’s well-being, regardless if you end up making money out of it or not, will bring you more good in the long run.

4

My first line of pre-screening is how much they want, how much it’s worth, and how much do they owe? If they want retail and have plenty of equity, I’m moving along. Before hanging up though I try to find out why they are acting to sell at this point in time to see if there is the potential of true motivation for follow up.