Close More Deals by Overcoming Seller Objections | Negotiating with Left and Right Brain Sellers

3 Main Objections:

1. Seller Indecision
2. Desire for More Money
3. Delay Tactics (Need to speak with “Spouse, Family, etc.” before decision)

How to Overcome the Objections:

1. Build a detailed Avatar – In business, an avatar is “Who is your ideal customer”
2. Understand their wants vs needs.
3. List every possible objection they might bring up
4. Have a “SOLUTION” for every objection
5. Ask open-ended questions.

OBJECTION 1: SELLER INDECISION: Concerned where they are going to move.

• Seller with large equity at close:
  • Solution:
    • Offer them a Seller’s Temporary Leaseback, which is where you “lease” the property back to the seller on a temporary basis (Ex. 14 days) to allow more time for moveout (Temporary is KEY). Retain a large portion of the seller’s equity if you do a leaseback.
    • Put a clause in the special provisions: In the event that you the seller fails to move out on time, they must pay a per diem rent, the buyer has the right to use the retained capital in escrow to pay for eviction costs, damage, legal suites incurred, removal of items left behind. Every day they are in the house beyond the move out date, you charge them per diem rent.
    • IMPORTANT:
      • Price the per diem slightly higher than a hotel in the area, so the motivation is to get them out of the property. When equity is withheld, and the seller states they need money to move, offer to pay for the move, but only out of their equity. Do not give them the money directly.
• Seller with no equity at close:
  • Solution:
    • Ask if they have anyone they can stay with until you bounce back.
    • Wording is important. Stating “until you bounce back” instills confidence in the seller, that they will be able to recover. Do you have any income at all right now? They could rent a decent RV and rent an RV Lot. If there are no solutions regarding money. Are they employed? If not, you may need to have If no money coming in, such as no employment, you may need to have the conversation about the importance of the seller getting a job – delicately.

OBJECTION 2: DESIRE FOR MORE MONEY

• The Left Brain Seller: Data Driven
  • Use data to support your price, if the seller is data driven, ask them to provide you data to support their price. Go over the repair costs with the seller, have the seller write down the repair costs, they feel in control and the actual repair costs become a reality.
  • Seller Net sheet:
    • All the fees the seller has and all the fees the buyer has. On the net sheet, use the seller’s numbers on repair costs, etc. Or, if you know you can get it at a lower price, tell the seller you can get it for less, so that if they understate a price for a repair, you can negotiate the price down.
  • The “What If” Close:
    • Ask the seller, “If I could give you, say $20K more than you are asking for and close in one week, would you sign right now?” Typically, they will say yes. The investor’s response illustrates why both parties must come to an agreement. “As they buyer, I could not give you that much for your house because that does not make good business since. I would go out of business, my spouse would divorce me, etc. I would love to pay only $1 for your house, but you, the seller, would not do that. So, what is the number that makes sense for both parties?”
• The Right Brain Seller: Emotional, Sentiment
  • Connect to their emotional appeal. For example, seller had memories around the magnolia tree in the front yard, Daniel cut a clipping from it and planted it, which showed that he cared about the seller’s concerns
• The Intractable Seller: Determined to List with an Agent
  • Have the seller list with a realtor, preferably on your team, when the house does not sell in 90 days approach the seller again.

OBJECTION # 3: DELAY TACTICS “I NEED TO TALK TO MY SPOUSE, FAMILY, ETC”

• Before the appointment, ask the seller, is everyone who needs to be there to sign off on the transaction going to be at the appointment. If not, ask if you can do a live call with all the parties necessary. If you are at the appointment and they state that they need to speak with their spouse, family tell them to call that person, while you step out and speak to your partners to confirm that you did not offer too much for the property. Create a loss aversion scenario, where the seller is afraid that the offer

Final Thought – LEARN TO NEGOTIATE

We negotiate every decision, every day. Learn as much as you can about negotiation.