FortuneBuilders Six Week Negotiation Coaching Series
Objections Packet #1: SELLER OBJECTIONS
SELLER OBJECTIONS PACKET
• Common General Business Questions•
What does your company do?
Our company does a wide variety of things based on each individual real estate situation. We buy a lot of properties in the area that need work and we also purchase a lot of nicer homes from people who don’t want to deal with paying hefty realtor commissions. We can make you an offer in the next 24 to 48 hours on your home and we can close on your timeline. There are also many other benefits to working with us. To start the process all I have to do is gather is some basic information about the property. Do you have a property that you are looking to sell?
How can you buy a house in 9 days?
Well, most of the time we are cash buyers and all we would have to do is a title search and prepare the paperwork and we can close in that timeframe. We move very quickly if need be although not everyone has to sell their house in this short of a time frame. In fact, most people need a little more time, but if you did have to move quickly we can do it. Let me ask you this…how quickly do you need to sell your house?
• Objections You Will Get When Taking Leads•
You sent me a letter how did you get my information?
Actually that is a very good question. First of all there is no need to be concerned. All the information we get is from public record down at town hall. What we do is purchase properties from private individuals like your self. Just think of us as a cheaper and more efficient way to sell your house as opposed to using a Realtor. Do you have a house you are looking to sell right now?
Is your company just going to lowball me?
No. Every piece of real estate is unique so what we do is evaluate the property, the area that it is in, and make you an offer directly and you don’t have to pay any commissions. What we do is purchase properties from private individuals like your self. Just think of us as a cheaper and more efficient way to sell your house as opposed to using a Realtor. Do you have a house you are looking to sell right now?
I don’t feel comfortable giving you my personal information?
I understand your concern…however, because we have not met and you do not know me personally. First, I want you to know that any information you give me is confidential and secondly the only information I will need is basic information that most people could gather from public record anyways.
Let’s take a step back and why don’t I give you a little more information about my company so that you feel a little bit more comfortable with who you speaking with. Is that okay?
Our company does a wide variety of things based on each individual real estate situation. We buy a lot of properties in the area that need work and we also purchase a lot of nicer homes from people who don’t want to deal with paying hefty realtor commissions. We can make you an offer in the next 24 to 48 hours on your home and we can close on your timeline. There are also many other benefits to working with us. To start the process all I have to do is gather is some basic information about the property so we can formulate the best possible offer for you so we can hopefully get your house sold. That is what you want isn’t it?
(continued: Objections You Will Get When Taking Leads)
The house doesn’t need much work it is in perfect condition?
Great…it sounds nice. Let me ask you this…if you were to stay there for the next 5 years is there anything you would do, even minor changes, to really make the house a home?
I don’t want to tell you how much I owe on the house it is none of your business?
I understand your concern, however you must know that our company is very serious about buying homes and we get at least 5 to 6 calls every single day from sellers who are having trouble selling their homes. The reason we need this information is so that we can make you the best offer possible on your home. Sometimes, we can make you two offers. One which is a cash offer and the other one where by we take over the mortgage. Having options is not a bad thing let me tell you….so that’s all. It just helps us get you an offer quicker. So do you have one or two mortgages Mr./Mrs. ______?
I still don’t see why giving you my mortgage information is relevant?
I definitely hear you Mr/Mrs ______, however I want you to know that all your mortgage information is public record and could be found out very easily with a trip to town hall. That being said the only reason I need it is so I can make you multiple offers because sometimes your mortgage can be taken over and I can even offer you a little more for the property depending on the situation. I don’t think you would object to getting multiple offers on your house would you?
I am not giving you a price…you make me an offer on the property?
I understand your concern, however you must know that our company is very serious about buying homes and we get at least 5 to 6 calls every single day from sellers who are having trouble selling their homes in today’s market. Just because we are so busy there is no way we can make offers on everything so that is why we get some basic information just to make sure we are in the same ball park. Why don’t you just give me a ballpark figure of what you would be looking for just so we have a starting point?
I am a little apprehensive about you just coming to my house because I don’t know you?
I understand your concern, so let me give you a little more information about our company because I know you will feel much more comfortable then. Our company is very established and has a great reputation in the community. We have been in business for ______number of years and have a stellar reputation with the better business bureau.
I personally am part of many charitable organizations as well as the local chamber of commerce. Plus, Mr/Mrs. ______, what we do is definitely not out of the ordinary. Anybody looking to buy your house or any Realtor looking to list your house would have to see your house and meet with you. I assume you expected this so meeting me at the house is definitely not out of the ordinary.
Why don’t we do this. Let’s set an appointment to meet and I will give you a couple references you can call in between now and then that I know will make you feel more comfortable with meet me. How’s that sound?
I can’t meet at the house today or tomorrow…does next week work?
Ooooh…unfortunately, next week is crazy busy. Is there anyway you can squeeze me in later tonight. It won’t take too long at all to meet with me. At least we can get the discussions started and I could possibly even have an offer in your hand by tonight. How does that sound?
• Objections You Will Get When Making Verbal•
Offers Over the Phone
I got an appraisal on the property for so much more than you are quoting me.
I am not surprised and I definitely understand your concern. I know a lot of sellers get appraisals when they are trying to refinance or see what their options are. I actually did this recently and had an appraiser come in and I really had him push the value as much as possible to try and get as much money out as possible.
Now as you know an appraisal can me pushed and is often times very high. If you really look at our offer versus the alternative of holding onto your house for the next 6 months, paying ALL those mortgage payments, and then a heft commission on top of that our offer is not too far off what you MIGHT get on the open market?
A realtor told me I could get a lot more for my property.
I am not surprised and I definitely understand your concern. I know a lot of sellers meet with Realtors who come in and make some pretty bold promises just to get the listing. Remember, often Realtors tell you what they think you want to hear with the intention of securing the listing. Then three months later after they haven’t sold the property they ask you to make some major price reductions.
If you really look at our offer versus the alternative of holding onto your house for the next 6 months, paying ALL those mortgage payments, and then a heft commission on top of that our offer is not too far off…wouldn’t you agree?
• Objections You Will Get When Meeting With Sellers•
So how does this process work? Do you need to see the house first?
I am glad you asked. The process is pretty straight forward. The first thing we should do is take a quick tour of the house together so I can get a feel for what it looks like and what type of work it needs. If there is anything that needs work no matter how large or small I definitely want you to point it out. And don’t be afraid I have seen it all before.
Then we will sit down at the kitchen table and we can talk more about your situation and hopefully we can come up with a win-win situation.
I am just in the beginning phases of selling my house and not even ready to discuss a contract yet?
I understand your concern. What do you think is holding you back from being able to make a decision?
Well as you know I do have other offers out on other properties so I would have to at least nail something down pretty quickly otherwise you might risk losing my offer. Unfortunately, I only have so much capital to work with. What I commonly do in this situation is agree to the terms and the price and then I would be happy to give to make our agreement upon a two day review if that suits you better. At least that would let me get the process started, pull a couple of my other offers, and with absolutely no commitment or risk from you. I assume that may ease your mind am I correct?
I need the money for the down payment on my next house?
Well how much do you plan on putting down? And how soon will you need to put this money down? Huh…well what if we could give you some money now in order to have enough for a down payment and create a mortgage on the property which we would pay off within a couple of years. That would be great for you because you would receive interest on your money in a lump sum and it would be great for us because we could close on the property quickly, which is what you want isn’t it.
(continued: Objections You Will Get When Meeting With Sellers)
How can I start rebuilding my credit?
The first thing to do is to get this problem solved as quickly as possible and get these back payments paid off. It is our policy to work with all of our clients who are in foreclosure get back on their feet after they sell us their house. In fact, we have helped numerous people improve their credit and qualify for one of our houses that we are selling in the area. We sell a lot of homes on a rent to own situation to people just like you who need to improve their credit, but also want to own a home and that is ultimately what you want isn’t it?
How do you assist me with moving?
I am glad you asked. Well, it’s pretty simple actually. What I can do is two things.
First, I can help put together a list of all apartments that fit the criteria of what you desire and then either assist you in the process of finding one. Even better than that is we can even find an agenet who works on your behalf to find a place to live. The best part is that the landlord is the one who pays the agent so they work for free.
Second, when you decide to go forward with everything I would be more than happy to work with you to make sure your move is a pleasant one. ***(All terms here are negotiable depending on how much or how bad you want this deal.)
How do you help me negotiate some of my debt?
I am glad you asked. It’s pretty simple actually. What we do is contact your creditors on your behalf and then I present offers to them for 10 to 50 cents on the dollar. This does take me an ENORMOUS amount of time and is a huge benefit of working with us, and I will definitely do this for you if we can come to terms on the price which I know we will.
• Objections You Will Get When Making Offers•
I’m going to list my house with a Realtor because they can get me more money?
I definitely understand your concern. I know a lot of sellers meet with Realtors who come in and make some pretty bold promises just to get the listing. Remember, often Realtors tell you what they think you want to hear with the intention of securing the listing. Then three months later after they haven’t sold the property they ask you to make some major price reductions.
If you really look at our offer versus the alternative of holding onto your house for the next 6 months, paying ALL those mortgage payments, and then a heft commission on top of that our offer is not too far off…wouldn’t you agree?
But my neighbor’s house down the street sold for so much more?
I understand your concern? However, there are many factors that go into the value of a house. In fact, I know based on my research for this neighborhood that my offer is more than reasonable considering the terrible conditions of the market.
But I have so much more equity in my house than you are offering me?
I understand your concern…however, if you consider all the costs associated with selling your house you would realize that this is a pretty fair offer. Have you ever considered how much money it is going to be to repair/update this house in order to get it sold to today’s very demanding buyers. Not to mention the holding costs of the house that we will accumulate while we try and market it and sell it. Additionally, a lot of the retail buyers we deal with want a bargain and usually take a long time to qualify for financing. Let me ask you this have you ever heard of some of the horror stories of selling houses when the buyer is having trouble trying to obtain financing? Well, let me tell you it eats up profit quickly!
(continued: Objections You Will Get When Making Offers)
You are making so much money on this deal?
Well it would appear that we are…however have you ever considered how much money it is going to be to repair/update this house in order to get it sold to today’s very demanding buyers. Not to mention the holding costs of the house that we will accumulate while we try and market it and sell it. Additionally, a lot of the retail buyers we deal with want a bargain and usually take a long time to qualify for financing. Let me ask you this have you ever heard of some of the horror stories of selling houses when the buyer is having trouble trying to obtain financing? Well, let me tell you it eats up profit quickly!
Let me talk it over with my family?
Not a problem…is there something that is holding you back right now?
Well, what we normally do is get the paperwork going and we can make the offer completely contingent upon you speaking with your family. The agreement is non-binding during this period, but at least it saves time from the attorney/title companies standpoint.
When you are ready to go forward after speaking to your family we will call the attorney/title company to tell them to get everything going. If you decide against it we can rip the contract up and I can go on my way. I am assuming you would like to save some time while you and your family talk it over…
But aren’t you going to resell it for a profit?
Our company does make a profit when sell it to our first time homebuyer down the road…however, we do have a lot of costs associated with acquiring the home, updating and repairing anything that needs to be fixed, and the holding cost until we find a family to buy it. Let me ask you this do you have the money and the time to prepare your home for resale?
I have a friend in the business who is going to take care of the problem for me?
Great…however, let me ask you this are you 100 percent sure that your friend has the financial capability to do this and can close quickly? I know the quicker you can take care of the problem the more money you will save… and obviously you don’t want to tarnish your credit anymore do you? I have helped many people before get out of a jam when they thought their friend was going to come through for them and you do want to get out of this problem as soon as you can don’t you?