Hey there — Patrick Riddle here as we welcome in the weekend this Friday morning…
Question: Are you actively buying real estate?
If so, then you’re having convos with sellers… which means crafting seller conversations correctly should interest you.
Why?
Because the better you are at having quality conversations with sellers, the better you are at buying properties… and getting sweet deals on those investment properties as a result of the conversations you’re having.
Through the art of connecting with sellers in convos, you also have to be:
- concise
- qualify the right people
- disqualify the wrong people
So, below we’re hitting you with 3 super-easy questions to help you decide if a seller can play ball with you.
Note: The following explanation assumes that you’re talking to a seller on the phone who has contacted you. You may speak with 15 to 30 sellers before you get a great deal, so use these questions as disqualifiers for each lead.
Q #1: What’s your situation?
After your initial polite and friendly greeting, ask the seller:
“What’s your situation?”
This question is a direct approach to finding out their motivation.
If you need to clarify your question further, you can say,
“Well, are you just moving to a different house or out of the area, or is this
a rental you’d like to unload, or did you inherit this property recently…”
Now is where you hush and listen! They will tell you why they are selling at this point.
Q #2: What’s the Condition of the Property?
You want to find out about the condition of the property.
So, you might say:
“What would have to be done to the property for it to be in perfect condition?”
If you just get a rough estimate from the seller, that will suffice.
Beware: Most homeowners grossly underestimate how much work their house needs.
But it’s OK, because you’re only using the estimate you get from them as a general idea when potentially negotiating with the seller over a deal that you don’t even know is a deal yet…
It’s really just a starting point only.
And, it’s also a question that they’re expecting you to ask anyway, so it fits well within the context of the conversation.
Q #3: How much do you owe on the property?
Ask the homeowner:
“How much do you owe on the property?”
On the rare occasion that the seller seems hesitant to answer that or maybe they’re a little troubled that you’d ask it, just follow it up with:
“Well, it’s public information, so I can find out anyway by doing some research,
but I thought it would be easier and faster if you just told me.”
Putting it that way makes it apparent to the seller that they’d be dumb (yeah, I said it) to not tell you… AND, you’re probably going to buy their house for them anyway, which is a problem that they need solved. A problem you can solve.
I seldom talk to anyone who is reluctant to give up this information, but if it does happen, you can say:
“I’m sorry, but we cannot submit your property’s information for further
research without that information.”
This is another time when you stop talking… they will eventually chime in with their mortgage balance.
There you go…
Of course, there are other good questions you could ask…
But these will allow you to make the decision: “trash pile” or “under further review pile.”
Do NOT spend time researching every lead thoroughly. Disqualify as many as possible, as quickly as possible.
If they aren’t motivated, you shouldn’t be talking to them. If they don’t have sufficient equity, NEXT!
Your time is valuable, use it wisely.