How to Deal With Motivated Sellers

Elena like you say to me - GIRL! you are a step ahead. This was very good info and very true.

Thank you

"They decide whom they are going to deal with because of how they FEEL"

Absolutly! It isn't always the $ sign that wins, most cases yes but...

three people stop by and offer tha same or around the same. Seller will sell to who they LIKE based on FEELINGS!

D,
The last deal I got. I called the guy and we had a great conversation and quite alot in common, at that time the home was vacant and overpriced, but I told him to keep my number and if he changed his mind to call me back later. He called me back a MONTH later saying that he spoke to his Realtor friend and realized the home was overpriced and that he wanted to negotiate, and I know it was ONLY due to that initial conversation. I kept asking myself why didn't he just let his Realtor friend handle selling it? We never used a Realtor on that deal... So I know selling/buying decisions are based on emotion!
Elena ;D

I feel sure that you are right. We generally let our emotions rule our decisions and having someone they can relate to and connect with is a huge plus.
This gives them confidence in you which is very powerful; however, I also feel that there are a percentage of sellers who are so motivated by money that (and often don't have a personality) they will not see anything but the dollars signs.
Haven't you ever met that kind of person? I certainly have. But you will know them straight up and can change tactics to meet the challenge.

My humble opinion!

posted wrong

Elena M,

Today I am reading your 6 welcome posts/links so do not be surprised to get a bunch from me today

You are 2 for 2 so far in my book regarding your keen insights with these posts you've started...thanx for placing them in your "welcome" to folks as they are providing a solid foundation for me to get up and running in an area (REI) that I have never done!

To validate your thoughts, let me share some experiences from my past life as a HS principal...as you can imagine, when a student is "sent to the principal" (be it skipping, tardies, detention, fighting, etc etc etc), the LAST thing that student needed to hear is that he/she "did something wrong." My first step was to get up from behind my very authoritative desk and sit beside that person and hear their story. Everyone has a story. Then, we would discuss how TOGETHER we could help the event to NOT happen again (or at least, not as often). We would then "go to the handbook" and discuss the "penalty"...after much soul searching together, we came to one of two conclusions: take the penalty as is OR "take a mulligan" (i.e. take another chance BUT if the offense is replicated, the person signed a private contract with me to DOUBLE the penalty next time.) Amazingly, when the parents came in (I always require the parents to attend the conclusion of these meetings), I would now step back behind my desk, but ask the STUDENT to tell their parent(s) why they DESERVED the penalty (but perhaps chose a "mulligan")...interestingly enough, in almost a DECADE of this technique, I still see former students at the mall and in social environments and they come up and warmly embrace me and introduce me to family/friends...why? Because I listened and heard their story...

Am I far off the mark to suspect that you are a Master Listener to your potential sellers? And, is it true that each of them also has a story to tell? Just some random thoughts from an old principal...

Have a great day!

First let me say welcome to the DG family, we're so happy that you joined us and look forward to sharing in your rei journey. I hope that we will be hearing more insights from your experiences as a principal. Working at a high school as a computer lab assistance has been a very rewarding experience. I have the utmost respect for principals, as my job is a breeze compared to theirs. Also being a mother of twin teen daughters has brought many unexpected challenges, probably more than my job... LOL!
You hit the nail on the head, to be successful in any business I believe you have to treat people with respect and consideration, no matter what business you're in. I guess that stems back to teachings from the bible treat thy neighbor as thyself...
I'm always honored to be able to help, please feel free to ask anything you might need assistance on, myself and many of the other wonderful folks here are all too happy to help and share their knowledge and experience with you as well. Again, we are glad you joined us and look forward to hearing from you.
God bless you,

I know this is an old post but I wanted to add my recent experience.

I was told that an owner wanted to sell her house quickly. I visited her and introduced myself explaining that I was interested in purchasing her property. She told me that an investor pulled up in her driveway recently and offered her $65,000.00 for her property and she got insulted. After talking with her and explaining why an investor could come off as cold she warmed up to me and actually offered me the property $5,000.00 lower than what the investor offered.

The conversation extended as she began to tell me her reasons for selling and I remained "human" and showed her compassion. We are meeting this week to settle the deal.

This is good advice! Thanks Elena

Isn't it amazing? It works every time! I laugh at those teachers that told me go out and make 100 offers. Why would I do that and insult those sellers? Ridiculous! Even more ridiculous that they would teach that!! LOL! I just know that when I met the owners personally, sympathized with their situation and build raport my deals were the BEST transactions I've ever had in rei! I've also had two other deals prior to those, that I used Realtors on. I put my trust in them and both of them had so many problems! I was VERY unsatisfied with the transactions and I prefer to do it alone now. So I'm glad you posted that so people can see that it does make a HUGE difference.
God bless,

it basically comes down to not "following the crowd" and what i mean by that is; see what ALL of the other investors are doing and do THE OPPOSITE!, because the seller that you want to send a pre-foreclosure letter to needs to come from you PERSONALLY(just using this as an example), because it is what you do DIFFERENTLY that is going to be the difference in whether that homeowner calls you or calls the "other guy", RELATING to their situation will ALWAYS win over a guy that says he "pays the highest prices" or whatever an investor might say.

Hi Elena,

First of all, how are you enjoying your Labor day, I know you posted this way back in June...but this is very important, you have to create a good rapport and to also build the sellers motivation to sell....and to do this you have to connect with the seller, sometimes you will have to fit yourself in their situation and sympathize with them very important.
Well! Elena you have a beautiful Labor day.

Aniekan

Hey Kiddo, why don't you guys just move to upstate NY and we wll buy everything in sight!!! I know how a seller feels, which is one of the reasons that I got involved with RE. Not to bore you with details, but I lost the house I was raised in to foreclosure, I had the county sheriff come to my house and give me 5 days to move my family out. I have gone thru the shame of a chapter 7 and anything else that can happen to you, I have had it happen to me. Always, Always, treat people with respect.You never know what will happen down the road. Anyway enough ranting and raving. I love your posts, so keep them coming girl...Jan

You three guys are simply amazing! I gotta say that you are all on the right track. You do have to put yourself above the rest, hold yourself to a higher standard, make that connection and show people that real estate isn't about making a killer deal of someone else's misfortune, it's about people helping people, with dignity, integrity, respect, empathy for their situation and above all honesty! Thank you for contributing your experiences Jan, you have NOTHING to be ashamed of, you overcame all of that so that makes you a winner in my eyes! FOR YOU ARE VICTORIOUS!!
God bless you all,

Thanks for the pat on the back. It was a very down time in my life, and one that I will never forget. In fact that is what keeps me going. Someday, I will be in a position to help people, not knock them down. I've just gotta get my first deal in the bag, and then I am on my way. Wishing nothing but the best for you...Jan

Jan,

i am also new at this and could not help but reply to your previous comment. I am currently in one of the most down times of my life. I am also looking forward to my first deal. I need my first deal to be yesterday, if you know what I mean.

One thing that I have realized since I have read Dean's book and been active on this site is that the very fact that I am here gaining this knowledge about RI means that I am already on my way even before I make my first deal.

KNOWLEDGE IS POWER! The fact that you are here writing comments is fact enough that you are on your way too! Just keep gaining the knowledge that you need to gain the power that you need to push forward and close that first deal.

I am getting ready to close on my first deal and I could not have gotten this far without the guidance of people like Rina, Elana and Sully (Thanks guys!) oh...and Dean of course .

You just keep pushing! If you want it bad enough it will happen!

I have NO doubts that you BOTH will have a deal very soon. You're absolutely right! The fact that you're here posting and asking questions shows your dedicated and serious about making this happen. I for one, am happy to help you see the success you desire, as I know everyone else is!
God's continued blessings upon you both,

Man, All these pats on my back is swelling my ego. Thanks to both of you and my man Sully. It is people like all of us that make this site what it has become. It is like I said before, If I can help someone, it makes it all worth it. MOHITO'S IN THE BAHAMAS IN ONE YEAR, LET'S DO IT, AND WE WILL EVEN BRING DEAN!!!!! Luck to all of my DG family...Jan

I don't think anyone who truly is in rei to help others could get a swelled ego. You're heart and head are in the right place! We shall meet in the Bahamas my friend...

God bless,

Hi Elena,
We are out here to help either other and try to see if we can succeed, It's about suceess ain't it. I have been putting up some killer strategies for my area...I just realize that by the time I finish puttin everything in place...I should have a buyers list of not less than 20-50 motivated buyers to cater to in the first two weeks. Have a nice one Elena.

Kanbee.

That's just awesome! I have no doubt that you will have plenty of motivated buyers contacting you soon if they haven't already done so. Keep us posted, we're praying for you!

God bless you,

Hi Elena,
I just had a caller this mornning, call me telling me they say my ad, and wanted to see what it was all about....I'm my way to my first deal.
Kanbee.

That's what I'm talkin about! That's great news!! You go with your bad self... Keep me posted.

I 'm just starting out getting involved in R.E. investing. I 'm reading the book and want to make an offer . I'm pumped up, but at the same time I'm nervous and need some encouragement.I've been looking for FSBO's beacuse I want to assign the property to generate some cash flow. Should I do this with realtors to?

I read the forum on AND/ OR ASSIGNS and know that's the way for me to start out.My second day after reading Dean's millionare book,( and not finished yet)I was out riding around my neighborhood taking numbers down from FSBO signs.I went on Zillow.com to do comps and the asking prices on the houses seem to be more than the comps. For instance, one house I looked up was asking $439,400, the zestimate was $363,500 , and the value range was $301,705- 381,675.

The comps of house sold similar to this one was $427,000 sold 6-25-08. This is where I get nervous and don't know what to do.

I'll continue to read the book and highlight the important parts to give me the knowledge and confidence to just do it.

Bob

I go onto http://www.propertysharks.com and search for how much the house last sold for. This is usually a good estimate as to how much the owners owe on the house. This is where I begin my negotiations. They have no idea that you know this info and will try to get the highest amount poss. Granted you must take into consideration if they have done improvements since they purchased the house because this can be costly. so you want to be fair in your proposal. It is best to get a look at the house before you begin your negotiations and put in an offer.

The house that was asking $439,400.00 may have had improvements or additions that the Zillow comps were not based on. For ex. if the owner put on a second floor that made it the largest house on the block then Zillow will only estimate it with the other homes in the area without the addition which makes the house over priced for the area based on the comps..

I hope you follow this and I am not confusing you. I am kinda new myself but have learned allot in the past few months.

Hi DG Family,
I'm not computer or internet savvy, so I'm learning as I make my mistakes.
That is the reason I haven't shared much. I'm usually all over this website. You are all the GREATEST. I love coming on to this site everyday. There is so much knowledge,compassion,patience,confidence,respect and LOVE here it blows me away. I've been reading, reading and reading. It always feels like I'm sitting amongst friends.. learning from the BEST. Thank-you for all the time and effort that you GIVE freely. I know that one day I too, will be able to give back as much as I have recieved. So, please bare with me.
Keep on with your GREAT ACCOMPLISHMENTS. I'm encouraged by you everyday!
LUV YA,kellie

Today let us rejoice....
We have been given "THE PRESENT"

Just wanted to add somthing to your post, i know you said that you checked COMP's on Zillow, thats great and all but, you need to check MORE than just what zillow say's, Internet web sites like, zillow are great but, their ONLY there to give you an IDEA, so if zillow gives a zestimate of $363,500 that "ESTIMATE" could be DEAD ON or OFF by up to $40,000 or more. Thats exactly why I check 5 different home valuation sites and MLS COMPS, so your looking at the BIG picture, this way will give you a way more ACCURATE FMV of the property your looking at.

Welcome both of you to the DG family, we're so happy you joined us. We're here to help you in your rei journey so read the posts, start your own journal and join in. Don't be embarrased to ask questions or for support or motivation. We are all on the same page, trying to be financially free through real estate and now is the best time for ALL of us to achieve that!

God bless you all,

Sully,

Thanks for the input. I hane been looking at the homes sold to give me an idea on what they're worth. What sites do you use? I'm in Mass.

Bob

Elena,

Thanks for the words of encouragement, Sully too!

I'm always here to encourage and support you all. Glad to be able to help anyway I can.

God bless,