How To Overcome Motivated Seller Objections In Real Estate Investing

In real estate investing, having all the numbers relating to a deal is important to make an offer that both gets accepted and makes you a profit. Usually I find that when I talk to motivated sellers, they are reluctant to disclose some information. Mortgage balance is one of the things they are not willing to discuss.
So how can you get over these objections and get all the information you need?

In my real estate investing business, I only deal with sellers who are motivated.

They have to be ready to provide all the information I need without pressure. I have no interest in dealing with a seller who thinks they are testing the ground so they can consider if to let me buy their house.

Most motivated sellers submit their house information through my real estate investor website. In this case, the website does the job of pre-screening them and pre-negotiating with them, so I just need a few minutes to tell whether it is a deal or not.

Here are a few common objections and how to overcome them:

Mortgage balance:
Once in a while when you talk to motivated sellers and ask them their mortgage balance, they might tell you it's none of your business, or if they are polite "why do you need to know?". You can clear this up with a simple statement:

"In order for me to able to evaluate the deal and make a fair offer that makes sense both to you and me and pay off the outstanding mortgage when I buy it, I must know the mortgage balance owed on it."

Then I say nothing… nothing!

Usually they will digest it and provide the information.

They have to know that without mortgage balance, you cannot make an offer. If they are really motivated, they will provide this information. You have no business talking to them further if they cannot provide this information.

A motivated seller will tell you anything in the world to sell you their house.

Repairs:
Repairs will always be estimated conservatively by the seller. I have learned that I have to fix bathrooms, kitchen, replace carpet and paint it.

Before I ask for repairs my conversation goes something like this:
"How long have you lived in the house?"

"Have you done any remodeling on it?"

"So what repairs does the house need?"

Usually I will ask about carpet, paint, kitchen and bathrooms. When you take your conversation like this, you are likely to get more accurate answers that you can rely on.

Asking price:
This is usually the toughest part to negotiate. Of course, you must know the mortgage balance before you can ask this question, or even make an offer.
My question goes something like this:

"If I can buy your house all cash and close quickly, what is the least you can take for it?"
Usually the provide the answer, then I say "Hmm…".

Then I say nothing.

Not a word until they speak.

Usually they will talk themselves down without me saying another word.

Sometimes I will still follow up with "Is that the best you can do?".

this technique usually works wonders.

Good luck in your next real estate investing deal.

Simon Macharia is a real estate investor in Dallas Texas, and uses an interactive real estate investor website to pre-screen and pre-negotiate with motivated sellers. Learn how you can close more deals using less money, time and effort with a website for real estate investing.