Real Estate Investing: Overcoming Objections By Motivated Sellers

In real estate investing, having all the numbers relating to a deal is important to make an offer that both gets accepted and makes you a profit.

A lot of times when I talk to motivated sellers, I find there is some information they are not willing to disclose.  Usually they do not want to discuss the mortgage balance among other issues.

So how can you get all the information you need?

Over the years in my real estate investing business, I have come to learn to deal only with sellers who are really motivated.

They must provide all the information I need to evaluate the deal without pressure.  I have no interest in dealing with a seller who thinks they are testing the ground so they can consider if to let me buy their house.

Most of my motivated sellers submit their information through my real estate investor website.   In this case, my website pre-screens them and pre-negotiates with them, so I can make an offer in just a few minutes.

Here are a few common objections and how to overcome them:

Mortgage balance:

When you ask for the mortgage balance, some sellers will ask you "why do you want to know" or tell you it is none of your business.  You can clear this up with a simple statement:

"In order for me to able to evaluate the deal and make a fair offer that makes sense both to you and me and pay off the outstanding mortgage when I buy it, I must know the mortgage balance owed on it."

Then I say nothing… nothing!

Usually they will consider it and give the information.

You must let them know that without mortgage balance, you will be unable to make any offer.  If they are really motivated, they will provide this information.   Do not waste your time with them if they cannot provide this information.

A motivated seller will provide any information in the world to help you buy their house.

Repairs:

Repairs will always be estimated conservatively by the seller.   I have learned t assume that I have to paint, replace carpet and fix kitchen and bathrooms.

Before I ask for repairs my conversation goes something like this:

"How long have you lived in the house?"

"Have you done any remodeling on it?"

"So what repairs does the house need?"

Usually I will ask about carpet, paint, kitchen and bathrooms.   You will get more reliable answers if your line of questioning goes this way.

Asking price:

This is the toughest part of the negotiation.   Of course you need to know the mortgage balance before you can ask this question or even make an offer.
My question goes something like this:

"If I can buy your house all cash and close quickly, what is the least you can take for it?"

Once they give an answer, I usually just say, "Hmm…”

Then I say nothing.

Not a word until they speak.

Usually they will talk themselves down without me saying another word.

Sometimes I will still follow up with "Is that the best you can do?”

In most cases, this technique works like a charm.

Good luck in your next real estate investing deal.

Simon Macharia is a real estate investor in Dallas Texas, and uses an interactive real estate investor website to pre-screen and pre-negotiate with motivated sellers.  Learn how you can close more deals using less money, time and effort with a website for real estate investing.

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