How To Overcome Motivated Seller Objections In Real Estate Investing

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 are unwilling to discuss mortgage balance among others.

So how can you get over these objections and get all the information you need?

In my real estate investing business, I only deal with sellers who are 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 motivated sellers submit their house 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.

Let us look at a few objections and how to overcome them:

Mortgage balance:
Once in a while when you talk to motivated sellers and ask them their mortgage balance, they might tell you it's none of your business, or if they are polite "why do you need to know?". A simple statement can clear this up:

"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."

I then shut up… completely!

Usually they will digest it and provide 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. You have no business talking to them further 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. In my business, I always assume that I will need to do paint, carpet, bathrooms and kitchen.

My repair questions go 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. When you take your conversation like this, you are likely to get more accurate answers that you can rely on.

Asking price:
Asking price is the toughest and most important part of your conversation. Of course, you must know the mortgage balance before you can ask this question, or even make an offer.
This is how I ask the question:

"If I can buy your house all cash and close quickly, what is the least you can take for it?"
Usually the provide the answer, then I say "Hmm…".

Then I say nothing.

Not a sound until they speak.

Usually they will talk their way down without me saying anything.

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

this technique usually works wonders.

Good luck in your next real estate investing deal.

About the Author

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.

Author (simon87). Submitted on Thu, 15 Dec 2011 Time: 12:43 PM

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