I am fairly certain almost 100% of ACTIVE real estate investors (including myself) have gotten their feelings hurt when a seller said no to 1 or more of our offers to purchase their home. Allow me to set the mood;
- You have just made an offer to purchase the seller’s mobile home for sale. You have just offered her your most competitive price because you really want to do your next deal, and you want this home to be your next keeper or flipper. Above all you are hoping and wide eyed awaiting a seller’s reaction to the purchase offer you just relayed to her over the phone. There is silence over the phone. The seller clears her throat, “No thank you.”
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You put on a front that it doesn’t bother you but inside you are a little kid that didn’t get what you wanted… (Understandable you may just have missed out on thousands of dollars profit and hundreds in cash-flow per month)
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You may be thinking that this article is about not letting the no affect you; maybe because of the fact that the sellers are not saying no directly to you but to your offer. With that logic it makes sense not to get personally offended. But why else should YOU not worry about the NO, in fact perhaps even expect or welcome it?
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Why you need to start waiting (and wanting) to hear a NO from your seller
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Here’s why with a picture.
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A seller responds: “No” You should hear: “Find out what I don’t like. Justify my worth. Offer me a slightly higher price or slightly sweeter terms please and then I’ll sell to you.”
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For your 1st offer keep it in the green to make sure you make the most GREEN.
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I wrote a 2nd part to this post. See Finding Your Next Real Estate Deal: How to Prospect & Farm Your Market
- John Fedro
Tags: mostly teaching
Leave A Reply (5 comments So Far)
Larry
530 days ago
A nice reminder about not taking things personal. Sometimes a picture can say a lot, which it does in this case. So, the next question for us newbies would be in the area of negotiating questions. What do they look like, is the approach direct (“Mr Seller, obviously we are far apart in pricing….”), or does one “sneak” around the elephant in the room?
John
530 days ago
Larry, Great question. Check out the link i just added to the bottom of this post. It is part 2 of this article: How to handle sellers and finding our next deals. The answer to your question is to have the seller become a part of offer process.
Obviously they will want that they want but over time, talking to enough sellers you will have sellers calling you back (some quickly – some over weeks) to counter offer your ‘low’ offers. This is how you get sellers chasing you and begin cherry picking deals month to month. *Keep in mind to always make at least 3 offers to purchase every home (1 cash and 2 terms offers). Make this 1st set of offers all in the GREEN section as shown above.
- John
Mitch Stephen
529 days ago
In 2003 I purchased 140 mobile homes in parks I did NOT own. I agree that a “No” can be the beginning of a conversation that ends in “YES.” it is usually much easier to have that conversation DIRECLTY with the seller (as opposed to deal through 2 realtors…theirs and yours). But, there is also a time to move on. Don’t compromise your budget or money making model. Stick to the spread you need to be successful and DO NOT compromise because you need a deal.
–Mitch Stephen–
Author, MY LIFE & 1,000 HOUSES
http;//1000Houses.com
John
529 days ago
Mitch, I think you just summed up the answer to everyone that has ever pulled the trigger on a bad deal, including myself. Stick to your guns and ‘your own’ money making strategy. Everyone listen to Mitch!
John F
Tony
521 days ago
I another great book.. errg at the moment cant remember the author…
but the title is
“Go for NO”
a great book about reverse thinking of get as many no’s as possible..