Crises Real Estate Creates Motivated Sellers But How You Manage it Matters
Motivated sellers end up that way for a variety of reasons; some so mild as an unexpected need to relocate, which could quite possibly be a big positive in their life. Then, there are others who are in crises; dealing with some of life’s difficulties like foreclosure, bankruptcy, divorce or death.
Among the most prevalent of motivated sellers are those in crises mode. While it may sound harsh, the reality is that this motivated seller in particular is your biggest asset. Rather than take a negative stance on it, thinking yourself some kind of predator, come to the table with positivity and think of yourself as a problem solver. You would be surprised at how often those in crises mode will be grateful for your presence at their gate.
Despite the seller’s market we currently find ourselves in, or perhaps because of it, you will need to be ready to handle motivated sellers with delicacy, sensitivity, subtlety and aplomb, now more than ever.
In addition to that, you may need to be prepared to pay a slightly higher price than you would have in years past; how much will ultimately depend on the catalyst for the seller’s motivation.
For that reason alone, you will need to immediately create a rapport, just as you would with any deal you are doing; however, when dealing with crises real estate you need to come to the table with a little more sensitivity than usual. In doing so, much will be revealed, which will ultimately help you navigate negotiations with the accuracy you need to get the best deal possible.
• Approach with sensitivity- be aware that your seller may be feeling any number of different emotions depending on their situational backstory. Until you know what that is, keep in mind that they could be feeling bullish, embarrassed, helpless, sad, worried, stressed, anxious, elated, cautious, desperate, panicky, relieved, exhausted or surrendered.
• Create a rapport and build credibility. Think about your tone, pitch, patterns, and vocabulary, as well as what you can put on the table to establish trust.
• Create interest; get them talking with you by using non-threatening language so that they will open up and you can best qualify them. When you use the right tone, ask the right questions, implement the right phrases and approach with sensitivity you can step back quietly and just let them start talking. Trust me; they will tell you everything you need to know.
• Find out the reason for their motivation for selling so that you can move ahead accordingly.
• Find out what their expectations, or hopes, are around selling price.
• Offer your terms in a straightforward manner, but resist the urge to elaborate. That does not mean throw out a number. That does mean that you let them know that, without getting in there to take a look around and crunch some numbers, you can’t realistically give them an offer because you don’t want to give you number without being able to back it up. If your seller preemptively makes a verbal commitment, be prepared to leverage that.
• Get the property under contract as quickly as possible, but as always, with your contingency clause(s) in place!
• Regardless of how motivated your seller is, don’t skimp on your due diligence. Inspections, legal and insurance information, market conditions and all other normal considerations and tasks must be completed no matter how eager you are to get the deal closed.
So what good do all these tips do if you can’t find motivated sellers in the first place?
After all, word on the street is almost exclusively about the shortage of properties for sale.
Here it is: there’s a system for that.
Even better; that same system includes an extensive training library that goes deeper into you how to deal with them once you’ve found them.
Despite the so-called shortage of real estate for sale, there are plenty of Motivated sellers out there. They are accessible. It’s only a matter of how you handle it.