How To Close More Real Estate Leads
Want to learn how to close more real estate leads? If you have been struggling to close real estate leads in your market or are wanting to close more of the leads you already have, then check out the 5 most common negotiation mistakes below for real estate investors and how to avoid them...
Mistake #1 - Focusing solely on the price
One of the biggest reasons investors don't close more deals is because their focus is on...get ready...closing more deals! (read that again). They are so focused on the price and the offer they need to be accepted that they forget the most crucial part of the equation, solving the sellers' problem!
Every minute an investor spends focusing on themselves is a minute that chips away at the rapport they built (if any) and credibility with the seller. The worst part is, if they don't catch themselves and course-correct before it's too late, this focus will eventually reduce their chances of getting the offer accepted to zero.
Here's the solution: Take the pressure off and listen. Hear what the seller's reasons are for selling. Ask questions and see how you can serve them in the best way possible. Believe it or not, when this happens, the number the seller wanted in the first place becomes irrelevant. Now on to Mistake #2.
Mistake #2 - Not Actively Listening
Can you remember a time when someone asked you a question, and you knew they weren't listening; they were thinking of what they were going to say? How did that make you feel? Frustrated right? Maybe like they didn't care? Well, that's how sellers think when we ask them a question and do the same thing...
In short, it turns an opportunity to build a relationship into nothing more than a cold, transactional conversation.
Our main job as investors is to uncover the seller's real needs or, as I like to say, "find the reason behind the reason." When you have that, you can help the seller in the best way possible because you can help them understand why selling to you is the best option for them. However, if all we are doing is thinking about what we want to say when the seller is sharing their personal "reason behind the reason," then we'll never hear it and, as a result, not solve their problem, costing us the deal.
Next, once you have the real reason the seller wants to sell, it's then time to press into the pain...
Mistake #3 - Not Pressing Into The Pain
There are many reasons why a homeowner needs to sell to a cash buyer, and it typically revolves around the 4 D's: Death, Disease, Divorce, and Debt. There are many other reasons, but I find these are the most common.
Back to pressing into the pain...
When a seller shares their most profound personal reason for selling their home, we have to acknowledge that it's a big step for them to take.
Here's how I do that in conversation: Once the seller finishes sharing, say something that is deep and personal, I will usually respond with something like,
"Thank you for sharing that Mr/Mr's. Seller. I know what you're going through isn't easy."
Boom! Instant rapport. The seller will appreciate that you recognized the personal nature of what they just told you.
Once you have that profound reason, you need to lean into it for the sellers' benefit. Here are three examples of how you can respond:
"Wow, that must be hard dealing with tenants that don't have respect for your property."
"Yeah, keeping up with a property that needs that much upkeep can be hard"
...or you could paint a picture of what the future could be like if they stayed in the same position "Mr. Seller, how would you feel if you had to deal with these problem tenants for even another year?"
Then bring it back to the positive, "What would life be like if you didn't have the responsibility of this property weighing you down?". A quick note on this technique, when doing this, you have to make sure you do it right. Otherwise, it won't have the effect it needs to.
The proper way to accomplish this is by actively listening, finding the reason behind the reason, pressing into the pain, and then using the picture-perfect technique that goes something like this:
"What would life be like if you didn't have to...."
"How would it make you feel if you didn't have to..."
After pressing into the pain, the next step is offering a custom solution to their problem, which brings us to Mistake #4.
Mistake #4 - Not Offering a Custom Solution To Their Pain
Ok, so we have them primed and ready. You've built great rapport, they are fed up with the problems they have been experiencing, you have given them a picture of what life could be like without that headache of a property in their life, and now they want to know what you are going to do about it. Here is where you will recap everything you can do for them and ask them, "If I could solve that problem for you today, are you prepared to move forward?"
At this point, you say: "If I could purchase your property for cash in AS-IS condition and solve (Their BIGGEST Problem / Fear), based on everything we talked about, about do you have an idea of what you would need to get for the house?"
Mistake #5 - Not Following Up
Once you have presented the sellers' custom solution, they will agree to move forward, or they won't. I'm not a fan of telling a seller what I can offer them unless they are ready to move forward that day. When you structure the offer process that way, it keeps the ball in your court. If you give them what they want (the offer) even though they are not ready to move forward, you have now made yourself a commodity to which they can compare everyone else. In the end, this will leave you feeling frustrated, and you'll be doomed to follow up until the end of time.
Remember, sellers are people too, and the more time you spend asking about them and less time focusing on what you want or flexing your "real estate ego," the more sellers you will help, and as a result, the more money you will make!
To Your Success,
- Chris Logan
P.S. By the way, if you would like to take this strategy to the next level, then you'll want to join me as I host a FREE online web class called Instant Deal Secrets. You can register here => FREE Webclass
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