Hey Moguls, Cody Sperber here…
Ya know, sometimes life gives you lemons. It sucks (pun intended). But what can you do when life tosses sourness your way? Rather than make lemonade, I say you take a good hard look in the mirror instead.
The sour I’m referring to is that inevitable moment in every investor’s career when you lose the deal. If it hasn’t happened to you yet, consider yourself lucky. But unfortunately, I promise it will happen eventually.
Sooner or later a seller will choose another investor over you, the price will be wrong, or your offer simply won’t be good enough for whatever reason. It happens…
And when it happens, you’re going to put away the sugar, pitcher and ice and ask yourself this question…
What went wrong? Read on for the answers…
Why Your Deal Went South
1. Your first impression lacked a positive connection
Sellers will choose you because they like you and trust you. And for them to do that, you have to create a positive connection with them from the moment you begin speaking together. Rapport-building with your seller is crucial and it’s strategic. Being aware of what you look like, sound like and how you interact with your sellers is a big part of that strategy, especially in that first impression.
And it all starts with that first phone interaction, which leads me to my first recommendation…
Only take calls from sellers when you can focus and devote all of your attention to that conversation. And be sure to have your notes handy and your strategy planned prior to making or taking the call. If you take the call on the fly when you’re caught off guard and communicating “off the cuff,” chances are you will lose your prospective seller.
2. You made it all about you
Think of your seller relationships as personal relationships. They typically don’t work when you don’t put the other person first. Nobody likes a selfish partner who rarely considers others, and your business relationships are no exception.
Connect with your sellers emotionally. Listen to their needs and concerns, and don’t try to impress them with credentials. Just be real, and make your sellers feel like they are your numero-uno priority. Consider them first, respect them, and I promise you will be a successful investor.
3. You rode your high horse
Nobody likes a “higher than Thou” attitude, so drop it. New investors (especially) have a tendency to compensate their lack of confidence with an attitude of superiority, which will bite you in the butt every time.
So, instead of acting condescending, create a comfortable relationship with your sellers based on trust, respect and understanding. Put yourself in your seller’s shoes, and look at things from their perspectives.
4. Your confidence was squashed
I’m talking confident, not cocky here, as I mentioned above. Here’s the thing – if you don’t believe in yourself, it will show. Self-consciousness is transparent, and it’s sure to make it tough for your sellers to trust in your knowledge and ability.
So, to help improve your confidence, why not try some confidence boosting techniques? Try visualization, surround yourself with confidence-building materials or find an accountability partner to help you.
Remember, confidence doesn’t happen by accident. You must purposefully build it in your own mind.
5. You mentioned money too soon
You know now that you need to establish rapport and build trust with your sellers, and that will never – I mean never – happen if you talk dollars straight out of the gate.
By starting your relationships with talks about price and money, you’ve given yourself no choice but to convince your seller through logic that your offer is a good one. And to that, I say good luck!
Remember to communicate from your sellers’ point of view using your emotional connection, and reassure them that you’re there to solve their problems and relieve their selling anxiety.
6. You accepted the response: “Let me think about it.”
Remember this – if your seller utters the dreaded words: “Let me think about it,” you can bank on one thing:
You haven’t done your job quite right. “I need to think about it” translates to “I haven’t heard what I need to hear to feel confident in doing business with you.”
So, go ahead and ask your seller what he or she needs to think about. Leave no stone unturned and keep probing until you’ve answered all questions. Find out what the hesitation is and address it completely.
It’s your job to answer your sellers’ questions and to read between the lines. Some questions are unspoken, so understanding your sellers’ concerns and knowing how to read them is crucial to your success.
Now You Know What Went Wrong
So there you have it… 6 possible problems that could be why your sellers are walking away from you. Learn them – avoid them – and you’ll be well on your way to better connections and deal with sellers.
Say Something
Got any other tips for working the right way with sellers? Share below.
Be prepared for that first impression conversation.
Always make the deal about your seller, not about you.
Make sure you avoid talking down to your seller.
Be confident in your skills, knowledge and abilities without being cocky.
Don’t mention money right away.
Answer your seller’s questions and leave no stone unturned.
Remember, you are there to solve your seller’s problem.
Cody Sperber
is founder and CEO of www.CleverInvestor.com. He's successfully closed many different types of real estate transactions including wholesale deals, short sales, multi-unit, subject to, lease options and my own proprietary investing strategy, the Reverse Short Sale. As a new investor he quickly gained a huge competitive advantage by mastering online lead generation, building one of the most successful real estate investing firms in the Arizona market. His companies have bought and sold hundreds of millions in properties and closed hundreds of real estate transactions. Before real estate, Cody served in the Navy and attended Arizona State, and he is now married to his best friend and has two beautiful children (Hudson and Brynlee).