In this Wednesday Weekly Wisdom coaching call, Justin Colby introduces the Five Types of Sellers. We all have a unique personality makeup but, did you know that there is a unique makeup for sellers? In his usual relatable fashion, Justin goes through each of the common sellers you will encounter in the housing market. Don’t miss out on this helpful insight to how these sellers think and what drives them!
You need to go into these seller interactions with the intention of finding the seller's key or primary motivation. It’s easy to assume that the motivated seller is solely driven by money. That is not always the case. If the seller is not driven primarily by money, what are some other motivators? Listen in as Justin gives some great insight to what motivates most sellers.
Some sellers live for the negotiation. They relish jumping straight in with numbers and trying to get the best price out of you. How do you manage this type of seller? Is it ok to go right into the numbers aspect of the deal? Justin gives some helpful thoughts on what to do when you encounter this type of seller.
This type of seller needs help. They have come to the end of their rope with their property. Maybe it's a rental property that has given them nothing but a headache, a home left to them by a deceased family member, or it's just nickel and diming them to death. These are some of the best sellers to deal with. They are desperate and ready to move on. Listen as Justin walks through this great opportunity to help a seller out of a difficult situation!
“Why Not Sellers” will come to you on a whim. They received a mailer or heard about you from a friend and decided to check you out. These sellers don’t have a lot of motivation. You have to be patient and stoke the flame of interest. They want you to sell them on the idea of selling. How can you make the most of this situation? How do you turn a window shopper into a seller? Justin gives some great insight into how this type of seller thinks.
There is a season for everything. This type of seller knows that and has built this thinking into their buying and selling habits. The “Seasonal Seller” is likely familiar with the process as they come to it every couple of years. How can you capitalize on these type of sellers? Let Justin introduce you to the way this type of seller thinks.
[0:01] Welcome from Justin to Wednesday Weekly Wisdoms.
The Monday Mindset & Wednesday Wisdom calls are group coaching calls included in the REWW Academy. These live calls are hosted bi-weekly by Justin Colby and Pat Precourt and cover a specific topic each session - ending with live Q&A at the end of each call.
These calls are designed to empower students to be effective entrepreneurs, creating business that thrive and make money through real estate investing. Students are encouraged to attend the calls and bring any struggles or questions they have about business or real estate.
The REWW Academy program combines our complete suite of software applications with our personalized coaching and a community of like-minded entrepreneurs to provide you with the most comprehensive real estate investing program available.
If you would like to learn more about the REWW Academy, attending these calls live, or learning fast effective ways to get involved in real estate investing, go to https://reww.com/v/reww-academy/ and follow the link at the bottom to apply today.
Below is the full transcription of the Five Types of Sellers Wednesday Wisdom call with Justin Colby.
Yo, yo. What is up everybody? All right. It is Wednesday. Welcome. As you can hear probably because the echo, as you can see behind me, I am in our San Diego office. We are in La Jolla, right on the beach. I am also live right this very moment on Facebook in our smart academy group. For those of you who are watching this recording, every single Wednesday I do these calls live, but at this same moment, I'm coming to you live at Facebook on a live stream on our smart academy so that way we are surrounding you with knowledge and that we are giving you everything we can to make you as successful as possible.
For those of you on Facebook Live, obviously, you will not be seeing the screens and the PowerPoints that we have here, but we will make sure that the entire video gets uploaded to the smart academy Facebook group, so you eventually will be able to see it. Better to hear me and understand me and to be able to at least listen to what I have to say than to not get the information at all.
For those of you who are live, what is up? As always, I am Justin Colby here for you on Wednesday, Wednesday Wisdoms, with myself, yours truly, Justin Colby. People are still piling on to this call, which is awesome. People are joining us on Facebook Live. What's up Raymond? What's going on stud? Very excited for all of that to be happening right now. Monica, what's up? There's just so many people. Debby and Mark and Andrew. I see you guys also. This is awesome. We are finally, with all my technological difficulties, starting to really start and rock and roll here with these Wednesday calls.
Obviously, as you can see, we have new looks on slides and I'm down here in La Jolla, right on the beach, in our offices in San Diego, which is always fun. We have our boardroom elite masterminds coming up tomorrow and Friday. They are here. It is a two day, all day experience with myself and Kent and Sean Terry. We're very excited for those students who will be joining us. Monday and Tuesday next week we will actually have our boardroom mastermind, which is an all day event, or a two day event, with myself, Eddy Rosefield, and others. Very excited about this guys. We are live coming at you. What's up Eddy? Here in Facebook and on our go to meeting. If you guys aren't attending the Monday mindset calls with Pat, make sure you're attending them. He also will be doing the Facebook Live as well as live here on the go to webinars.
Today guys, I'm going to jump into a new conversation. I did a very long series about overcoming objections with sellers, which is very, very important. I think I did roughly sixteen objections that you guys were able to see and overcome and I gave you how you can overcome them.
Today I want to jump in to the five types of sellers. There's going to be five types of sellers. Right? The way that I look at this is I kind of took my own spin on the real estate industry versus sales in general. I also took account personality traits. For those of you who are good in business, who understand people, who study and are big students about sales and business and personality traits, there are personality traits that you would hear about.
There are tests like the DISC test or there are other tests like a color coded test, so A type of personalities would be represented with the color of red. The hardcore, in your face, salesy, get to the point, don't BS me, who cares about a relationship, tell me how much it costs, that would be a red personality, an A type personality, a Wall Street personality. There are more of the green personalities. Those are typically engineers, accountants, people who really are overthinkers. They want to know absolutely every detail all the way down to the socks, from A to Z, very detailed oriented. That would be somewhat of a green personality. Blue personalities. That's like myself. Very fun, gregarious, outgoing, not so worried about every single detail. They're more of a "let's just go", fly by the seat of your pants, ready to go, don't have to overthink everything. They just kind of go with it.
I took a combination of a lot of those different type of categories, whether it be in business, in sales, just personality traits in general, and I brought up five different seller types that you're going to experience as you guys are going along. I'm going to make a series out of this and it's going to be all kind of composed into a series regarding negotiating, sales, building rapport, building a relationship, the component that a lot of you guys, I don't think, take too seriously. I only say that because it took us a long time for us to take it seriously. I know sitting in your seats maybe is something that is secondary because you haven't spoken to a seller yet. Maybe it's something that you really haven't thought of yet because you just got your mailout, so you haven't taken it to that level of you need to really be looking at how to speak to people and what type of sellers are you going to come across.
I'm going to start here, and obviously these trainings are going to be consistent every single week, but I'm going to put this together as kind of a overarching package of sales and negotiating and following up and systematizing how you're doing this and how to get a notch up on your competition. How do you beat them to the punch? How do you get the deal when they couldn't get the deal? I'll come up with a term of a series, right now I haven't thought of it, but really it's, for lack of a better term, maybe the sales series, and they'll be different components of it.
We are ourselves in our business right now are actually going through a major push to ingrain this into our own team, to really say, "Why are we not getting this deal, but our friend John got the deal? Why did they get to the house before you?", and things of that nature to really ingrain how important it is to make sure you understand. You are selling these prospects, and these prospects happen to be sellers of their own home, of their property. You are selling them on why they should choose you to buy their home. That is what you're doing. The more ammunition you go into these conversations with, the more ... Again, the last series was about overcoming objections. Now it's about knowing what type of person and/or seller this is.
Knowing your clientele, having all these little bullets to be able to bring into this is really going to help you. There's going to be several components of this series. Again, I don't have a good title for the series right now. I'm just going to, for the time being, name it the Sales Series, for lack of a better name right now, but this is going to be very, very crucial to your success because this is that component where I would argue a lot of people don't get right and they're out of the business in six months. They're out of the business in four, five, six, seven, eight months, within a year. They might get a deal, they might get a low hanging fruit, but they don't really hone in their craft. They're really not trying to systemize and build out a true business, and part of this business will be the types of sellers.
I'll start now. Again, for you guys on Facebook Live, I know you guys can't see my slides. It's better to at least be able to hear me and see me and follow me. We record these. The actual recording of this video will also be posted to our Facebook group, so don't fear. You will absolutely be able to see the slides. Also, these are always recorded, each and every week, that we put up on our weekly Wednesday Wisdoms on Smart Academy. Don't worry if you are a part of the live group right now, which I see you Steve, you will get access to these slides. I'm going to jump into the slides.
The first motivated seller, or at least the seller type, would be what we consider to be a motivated seller or a needy seller. There is a need that they have. There is a motivation that they have. A lot of times we as the coaches talk about financial motivation, and that would probably be the number one motivation that we're trying to look for is to see if we can find a financial motivation, that they need to sell right now, they need to close in seven days, they need to sell us the property. "Here is your offer, we can get it done for you." We're a lot of times looking for the financial motivation.
What I don't want you doing is always thinking that is someone's motivation. A lot of times there are other motivating factors. There are many of them. I didn't choose to list it here because we always are looking initially for that financial motivation, but that is not always the only motivation. Very rarely is it always the motivation or at least the key motivation. You need to go into these conversations, you need to go into these meetings, with a understanding, or I guess the best way to say this is going in there trying to find the motivation.
It isn't always financial. Maybe it is a death in the family. Maybe they're moving because they got relocated from work. Maybe they're going through a divorce. Maybe it is financial. Maybe they're just fell down on their luck, have health issues, they got a bunch of medical bills piling up. We've seen it all. Maybe their motivation, their need, is they need assisted living care and they can no longer live alone and that's their need. They need to do this now, they need to go get the money so they can move into an assisted living care. These are financial or these are motivations that are not just financial but are motivations none the less and you need to find that.
They are needy, they are motivated, and so that's where you need to find the motivation. How do you do that? Back to question based selling, which you hear a lot. What's up Jason? What you hear a lot about is question based selling. If this is going to be what I call right this second the Selling Series or the Sales Series, you need to do a good job of asking the right questions. Find out what they need. What is their motivation so that you can be a solution to all of their issues, to all of their needs, to all of their motivations. Monica, what's up? You're very welcome.
The first type I'm talking about is a motivated seller. They have a need. They have a motivation. The second type of seller is what I, again these are in quotes, these are kind of my terms, the "best price" seller. These can be bargain hunters, negotiators. Those are the people who want to negotiate with you. They want to get the best deal. They want to beat you. These are those type of people.
They're the same type of people that go shopping at flea markets and negotiate constantly. They'll go into Macy's, for God's sakes, or Nordstroms or Neiman Marcus and they'll negotiate. "Can I get 10% off on this or 20?" That's the next type of seller. They called you, but they won't do the deal unless they feel like they're winnings, they feel like they're getting the best number they can out of you, they feel like they won the negotiation.
It's up to you to not only find the motivation ... Again, these somewhat blend in to each other to a certain extent. This is what I deem as the "best price". You walk into the seller or you're on the phone with the seller and you're saying, "Listen, I'm very interested in your property, it sounds like you're very interested to sell, so let's get to it. What are we talking about here?" Numbers become a very big factor of your conversation in these type of situations when dealing with this type of seller. Could a motivated seller also be a "best price" seller? Absolutely. They're interchangeable, as I just mentioned.
You need to go in there understanding that numbers are the key to this person. It's not they need help moving, it's not that they need assisted living, it's not that they're going through a divorce. This is the person who wants to negotiate with you. They want to beat you. They want to get the best deal. They want to get the best price. That's who these people are. That's the type of seller you're dealing with. You need to go into that with the idea and with the knowledge of "Okay. This person's going to be all about numbers. They're going to be all about negotiating with me. They're going to try to get the best deal and swindle and move and shake and bob and weave and everything that negotiators do."
My aunt, as funny as it is, she runs a very successful business, but she is more in the spiritual world. One of the things that I find to be so quirky about her is she is one hell of a negotiator. She lives in the space of spirituality and that's who she is and she has a great business with that and motivation and helping people "see the light", so to speak. She runs a very successful business and she comes from a place of service to people, but she's an unbelievable negotiator. She would be like a "best price" seller. If she would call me because she got my mailer, she would be the first person talking numbers. "I'm not selling this for $0.50 on the dollar." We've all heard it before. That is the "best price" seller. They're going to say, "I'm going to get every ounce of, every nickel out of this home. I've spent twenty years here and I've put in however much money into the home and I know it's worth top dollar and I'm going to get it." That's who we're talking about. That's the "best price" seller.
The third type of seller is what I call the "fed up" seller. They're fed up. They're throwing their hands in the air. They're over it. They're tired of it. They're over it. They're just done with it. These are people that might own a rental property. These are people that might have a home that keeps breaking down on them. The roof is leaking, the pool needs to be worked, their AC is going out, their water heater keeps breaking. All of these. "I'm just over it. I'm just frustrated with the house. It's old. It always needs work. I'm putting too much money into the home. I'm not going to get my money out. I just need to sell." That's who what I call the "fed up" seller. "I just need to sell."
It doesn't mean they're not going to try to get the best price out of you, but that's the type of seller that you're handling so you need to handle that appropriately. Again, I'm going to make this a series and I'm going to teach you how to handle different types of sellers. I'm not saying these are the only five types of sellers you're going to come across. I'm not limiting this to five. There are many types of sellers, but predominately, most sellers are going to fall in these five categories. Through future training, I'm going to teach you how to negotiate with them and talk to them and build a rapport and sell them and follow up with them. Again, it's going to be part of the Sales Series.
Can a "fed up" seller also be a highly motivated seller? 100%. If you have a seller who owns a rental property that keeps breaking down, they need to do the roof, their AC, this, that, and the other, their tenants are constantly complaining about a broken toilet or whatever, they can have high, high motivation. They might have a need. "I need out of this right now because it's not making me money. It's costing me money and I can't afford it." Again, these types of sellers can start to blend into each other. The "fed up" seller is someone that we love in our business. We love the "fed up" sellers. The sellers that whether they live in the property, whether they rent the property, whether it's a vacant property, they're just fed up. They are just over it. They're over the whole thing.
We had a very good example of a "fed up" seller was they owned a property that they inherited that they owned with their brothers and sisters. They got the mail and gave us a call and said, "I'm over working with my brother and sisters. It's been hurting our relationship. Our relationship has changed over this house, over the death of our parents, and what not, the money that's come in and the rental properties that they owned. I'm just done with it. I don't want to work or be in business with my family. That's not what it's about." Their motivation was very extreme because it was "I'm over it. I'm done. I'm out. Just buy the property." We also had to get a signature from at least one other family member, one other sibling based around that they all owned the home in the trust, but the motivation was they were fed up. They were done. They didn't care about the money.
I'll give you another one. A family friend of mine called in. He lives in, I want to say he was in Chicago, and he also was going through this. His wife's mother just passed and he basically was the executor of her will. He had to make a decision. All of his wife's siblings were coming after the home. They wanted to live in it, they wanted to sell it and make a big profit, they wanted to rehab it, they wanted to do ... He was over it. He was fed up. He wanted nothing to do with his wife's siblings. He didn't even know how he was the executor of the will. He needed it to be sold to be done with it, to give everyone their money and be out. He was another great example of a "fed up" seller. "I don't care anymore. I don't want to deal with it. I don't care about the money. I don't care about this, that, and the other. I just want out. I'm fed up." You will come across these type of sellers.
The fourth type of seller I'll talk to you guys about today is the "why not" seller. Why not? These are the type of sellers that seem like it's the right thing to do. "I got your letter and I figured let's see what you have to say. It seems like the right thing to do. I don't have a ton of motivation, but hey, I got your letter, let's see what you have to say. What do you got for me?" These are the "why not".
They don't have a huge motivation, but if you do several things, such as build rapport, if you show them the advantages of selling their home to you, if you prove that you are worth their home, their decision, that you're the person to sell to and you're the person to sell to now, not in the future, and what are the advantages, that's the type of seller. They kind of want to just know the value of their home. I know a lot of us use a letter that we say, you know, in my letter I specifically say, "If you're just curious about the value of the home, give us a call. We will help you out with the value of the home and see if there's a value there that you're interested in selling." Those people become "why not" sellers.
They didn't really have a huge desire to sell, they didn't have a huge motivation to sell, they weren't a huge needy or motivated seller, they weren't a "best price" seller, they weren't a "fed up" seller, they were a "why not" seller. Why not? Almost like a ... How I would relate that to real life is that they're like a window shopper. The people walking along the streets going from ... I'm right here on La Jolla Boulevard, right here in San Diego, I'm on La Jolla Boulevard, and there's a bunch of these little shops. There's little restaurants and little jewelry shops and juice shops and surf shops and you name it, all along this little strip right here on La Jolla Boulevard. I would say this type of seller is someone who also is the same type of seller walking up and down the street and just seems something in the window and buys it. "Ah, why not? I don't need it, but I like it and I'm interested. I'm going to buy it." Same idea here. That takes a very certain, very specific set of skills for you to be able to get that person to move forward with you, but they are sellers none the less.
Lastly guys, the fifth and final type of seller that I have here, again, these are the five predominant sellers, it's not the only sellers, but I pretty much group all sellers within these five, is the "seasonal" seller. These are the type of people who every couple of years sell their home and move. They might move out of state, they might be having children and they need a bigger home, they might be empty nesters and all their children are off to college or older and they need to downsell, or maybe they just every four or five years figure it's a good time to sell. Maybe they have a bunch of equity and this is a habitual thing. This is something that they do every so often.
You see this a lot in the car industry. I myself am a seasonal seller and/or buyer, depending upon how you look at it, regarding types of sellers. As far as my car, I would say every two to four years most I'm usually buying a new car. Same thing with these sellers. It might be every year, two years, five years, but they're in a seasonal type of selling. They don't necessarily always have a huge motivation. They don't always necessarily need the top dollar, but their motivation comes from "I want something new. I want. I desire." Now it's up to us as the sales person to be able to show them that we can help them attain or obtain what they want and fulfill their desire.
Those are the five basic types of sellers that, for the most part, I group everybody in. They're obviously can be sub categories to each one of these if you wanted to get granular with it, but these, for the most part, are all the types of sellers. I'll go over them again. You have the motivated seller. These sellers have needs, they have motivation. Usually they tend to be financial, but they're not always financial. You need to find that motivation.
You have the "best price" seller. "I want the best price." These are the negotiators. These are the people who want to win the battle. They want to get top dollar. "I beat Justin and I got the price I wanted and yada." Those are the people who want to negotiate. They're the bargain hunters. These are the same people that go to flea markets and try to negotiate on everything.
Then there's the "fed up" seller. The "fed up" seller is they're over it, they're done. "I don't care. Just buy my fricken property. I want nothing to do with this thing anymore. I'm just tired of it." Lot of times those are landlords that are just tired of being a landlord and having a rental property. Other times that they're siblings of siblings and they just don't want to deal with the home. Other times their house is falling apart and they don't have the money and they're just over it. They don't want to keep fixing stuff in their house. They want to go buy a new house that's brand new and they're over this old house. They're the "fed up" seller.
Then there's the "why not" seller. The "why not" seller seems to say, "Why not? Why not call this person? I just got their marketing in the mail. Why not call them? Let's see what they have to say. Maybe they'll give me an offer that I am willing to accept. I have no real motivation, I'm not super motivated to sell, but, you know, let's just see what they have to say." I would relate these people to window shoppers that walk up and down streets and then finally they see something and they just jump in and buy it. They're spontaneous. They work off of impulse. Why not?
Lastly, the "seasonal" seller. These are the same people who buy a car every couple of years. They buy a new home every couple of years. They sell a home every couple of years. These are "seasonal" sellers. Maybe they need to upgrade because they have a larger family, maybe they're downgrading because they have an empty nester, but every couple years. There's a system to it. They have a season to it that they do the same thing and they're always looking to sell around the same amount of time.
Those are the five types of sellers. Again, this is going to be a longer series. For the sake of not knowing what else to call it right now, I'm going to call it the Sales Series. Thank you again for joining our Wednesday. For all you Facebook Livers, make sure you're also on our calls on Monday with Pat Precourt, Motivational Monday. I'm going to be live, Justin Colby, I'm going to be live every Wednesday. See you on Facebook Live. See you guys on the live calls. I am going to take some quick questions as I always encourage questions to see if there are any.
What's up Dave Miller? Diane, what's up? Love the wall behind me. Hey, I do too. Debbie, can't wait. Eugene. Eugene would like to be in the mastermind. "What happens when you are red and green?" Eugene, you look to get straight to the point, you're a no BS kind of guy, but you really got to overthink everything. There's no quick decisions on your behalf. It's hard to be a red and green, Eugene. You must have a certain talent.
Yes, I'm sure we can figure a way to get the PowerPoints. Again, these are recorded though, so the reality is it is kind of a pain in the butt to also send everybody the PowerPoints themselves. Again, once these are set up and you can stop and pause the slides and write your notes, that's really what I would suggest Eugene. It is kind of an extra couple steps and a couple extra people have to get involved to get you the PowerPoint, send it to the masses, so on and so on. At the point Eugene, it's better to wait until it gets uploaded into the weekly calls in Smart Academy and then take your notes as they come.
All right. "Can you use a snipping tool?" Diane, I don't even know if that was a message for me. Diane. I don't even understand what that is. Mark, looking forward to meeting you at the mastermind Mark. I don't know if I answered. Eugene, we will get you information about the mastermind Eugene. It is probably the most impactful, powerful thing that we do here for our students. It is a membership to a very powerful mastermind, so I look forward to seeing you guys all there and we'll get you some information Eugene. I look forward to meeting you Mark. Diane, "I can use a snipping tool." Oh, to record the slides? Diane was saying if you want to record the slides, you can use the snipping tool. Still not 100% sure what Diane's talking about, but hey, I'll take it.
Steve Terry, "Love the thirty minute webinar Saturday with Kent." Right on Steve. I like it. Good stuff. We're going to be coming hot and heavy with more and more content with you guys, for you guys, sorry, so be ready Steve. It's coming. It's coming.
All right. I got to run guys. Again, as always, it's been a blast and I will talk to you guys soon. Peace.
Justin Colby is a real estate investor, public speaker, podcast host, and coach. He is the Co-Founder or Phoenix Wealth Builders, a real estate solutions company, specializing in providing opportunities in a variety of areas within the Phoenix real estate market. Justin started the The Science of Flipping podcast in 2014 with the intent to give back by sharing the lessons he had learned for creating a business and life you live, after flipping over 500 houses within his first 8 years of business. Through his co-leading of the The Boardroom Masterminds, business coaching at The Science of Flipping, being featured on many top ranking podcasts, and speaking at REIA meetings around the country, REWW's Find and Flip Summit, Collective Genius and countless other real estate investor conferences he has been able to reach and impact the lives of thousands of real estate investors.