How to Handle Seller Objections When Closing an REI Deal
It’s important for Real Estate Investors to prepare and handle seller objections before a meeting with a motivated seller. It is the best way to beat the nervousness and to handle concerns flawlessly.
If you know what to expect, you will know what to say. That will build the seller’s confidence in your abilities to help them.
Common Seller Objections
Over the years I have probably heard every seller objection possible. The key is being confident in your response. If you are a new investor, this can be the hard part, because you might not know all the answers. That is why knowing some common objections and how to handle them can help you build a successful real estate investing business.
How to Handle Common Seller Objections
- The ‘other guy’ said he would give me this much money for my house.
You need to be prepared to explain the costs that might be hidden with another investor or agent. There are often commissions, fees, holding costs, expensive repairs, and other items that can add up to a large sum of money. Showing them the structure of your deal laid out on paper can show them exactly what they are getting when they sell their home to you.
- I want to sell my house in the traditional way.
Most sellers, even when they are motivated, don’t realize the costs and time it takes to sell their home traditionally. Cover the following items about selling their home with an agent versus selling it to you:
- Agent commissions
- Closing costs
- The time it takes to prepare, list, and sell a home
- Costs to repair the home to ‘traditional’ sale standards
When they need to be out of their home quickly, a traditional sale isn’t likely to work.
- Are you scamming me?
This is where your credibility comes in. Bringing a credibility folder that has testimonials and all the research you have done on their property any comparable homes will show the seller you are serious.
- This sounds too good to be true.
You can combine some answers above if you get this objection. Be prepared to go over the details of the deal you are offering and show them exactly how they benefit. This is also information you should bring with you to every appointment. When you are prepared, it will be easier to build rapport with a seller and show them you really are there to help them.
- I don’t have enough money to move.
Crunch the numbers for the deal, but often times you will still come out ahead if you offer a small amount of cash at closing to help them move. And sometimes this is all that it takes to close the deal!
Practice Makes Perfect
You won’t get it right every time. Don’t beat yourself up. With experience comes confidence, and over time you will handle objections easily.
Keep notes on your meetings, especially if new objections come up. Keep track of what works and what doesn’t and tweak your presentation to reflect your experiences.
Practicing with a friend, family member or colleague can also help boost your presentation skills and increase your comfort with handling tough questions.
To learn more about seller objections and how to start a successful real estate business without any of your own money, I invite you to download my Unlimited Funding Kit.