Real Estate Investing with Brian Evans Jr.
"Answering Seller Objections"
Have you ever been on the phone with a seller and they asked you some tough questions that you weren't quite sure how to respond to? I think we all have! Take a look at some questions I've been asked and see for yourself how I've handled these difficult situations.
“Well Brian, how do I know I can trust you?” My response to this question would go something like this: “Have I given you any reason not to trust me and not to believe me? Is there something that I've done up until now? Listen, if you don’t want to do this, that fine. I'm not trying to convince you to do anything. I'm just here to try to buy your house. I've got nothing to hide. You're welcome to check out my website or look me up on the Better Business Bureau, but there’s no reason not to trust me, unless I've given you a reason. Have I?” Notice that I'm turning around and answering a question with a question.
“Brian, how long have you been doing this?” You'll never get this question. But I would be honest. In my case, I'd just tell them what it is. If I'm brand new, I'd say, “Well honestly, I have not done a deal yet in this area, but my wife and I are looking to buy and we're ready to buy. We're very serious buyers, and I guess my question for you is are you interested in selling or what? If not, that's okay, too. But I'm interested in buying and ready to go. I'm a very serious buyer.”
“What if you don’t do what you say you'll do?” My response: “Well, I guess that's a fair question. Have I given you any reason to make you think that I wouldn't do what I said I was going to do? You tell me. If something that I'm saying is going to keep you awake at night, then we shouldn’t do the deal. If you don’t want to do this deal and it’s going to keep you awake, then let’s not do it.” Again, a lot of this stuff is off the cuff and a lot of it is very common sense. Don’t get so stuck on these scripts to where you've got to read it word for word. Come up with your own thing and just have a conversation with the seller.
“Why don’t I just list the property with a realtor?” My response would be:“Well, you’re welcome to do that. Correct me if I'm wrong, but if you list it with a realtor, you're trying to find a buyer. Is that right? Okay. Well, I'm not a realtor. I am a buyer, so the purpose of listing it is to find a buyer. So I'm right here. As long as we can come to terms and have everything make sense, we're ready to go. And then you don’t even have to pay fees or commissions. But you're welcome to list it with a realtor for another six months. It’s up to you. Do whatever is in your best interest.”
“What do you charge?”My response: “I don’t charge any fees or commission or nothing, not one red cent. In fact, heck, I might even be willing to pay your closing costs, if we can make this thing work in a good amount of time. How does that sound? I could charge you something, if you want.” I get a little chuckle sometimes out of that; sometimes I don’t. “I don’t charge anything. I make my profit based on the deal when I buy and when I sell. I'm not looking to charge you anything.”
“Can I have my attorney review this deal?” My response to the seller: “Absolutely. I have no problem. Here’s a paperwork.” And if I do give them paperwork, I give them blank paperwork. I do not give them paperwork that I've filled out, a contract or anything like that, because then they have the opportunity to go shop my contract with another investor. The likelihood of that happening isn’t something I'm really concerned about. If the seller were to ask me why the paperwork isn’t filled out, I would tell them, “I don’t like to pass out my contracts that are filled out, but here’s a copy of my contract, a blank paper, plain as day. You can take anything you want to your attorney, and I'll be happy to talk to your attorney, if you want, so not a problem at all. Have I given you any reason today, have there been any questions that you want your attorney to answer that I haven’t answered for you?” Again, I'm answering a question with a question.
So what if they ask to see your attorney. You have nothing to hide. All you're doing, ladies and gentleman, is buying properties!
“What if your new tenant buyer messes up the house?” Your answer to them could go something like this: “Well, that's a good question. I truly hope they don’t. But if they do that's why we have insurance. Insurance will cover it. And if insurance won’t cover it, I will. Again, I told you that I'm going to buy this property. I don’t ever want you to have to worry about it again, ever.” Instill the confidence in their mind that they want to hear. You're not lying. You’re being truthful, without a shadow of a doubt, with everything that you believe. And if you don’t believe it with the way you say it, then you need to start thinking about how you say it, and believe it from the bottom of your soul.
Every investor is going to come across some seller objections from time to time, but it's how you handle these questions that will determine whether you make or break the deal!