Hey Moguls, Doug Van Buskirk back again…
If you want to get a higher percentage of your lowball offers accepted by motivated sellers, then this lesson is going to be the most eye-opening journey into human psychology that you’ve ever been on.
So strap on your seat belt.
How many times have you heard the phrase, “If you’re not making offers, you’re not making money”?
It’s true, but I’d like to piggyback on that to say, “If your offers aren’t getting accepted, then you aren’t making any money.”
I’m going to take you step-by-step how and why you need to pre-frame and position your lowball offer to boost your offer – deal ratio so that you can make fewer offers, do less work and still get the same amount (or more) of deals.
The kicker with all of this, as you well know, is that the seller needs to be motivated. Without that X-factor, your mind-control skills will lose their pizzazz.
How to Make Them Desperate to Work with You and ONLY You
Psychologically, we humans are all pretty similar. And that makes it pretty easy to create a sales template we can use over and over again.
Let me ask you a question…
What’s THE BEST way to make you want something? Doesn’t matter what “it” is.
Still thinking? I’ll spill the beans…
The best way is to tell you that you can’t have it.
There’s a couple reasons for this:
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It increases perceived value. If it’s in limited supply, that MUST be for a reason, right? Because it’s special and exclusive. This makes that thing or service extremely attractive, cost be damned.
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It triggers ego. Someone says you can’t have something and your first thought is, “Oh yeah, says who?” Your brain immediately starts thinking about ways you CAN have that thing.
So how does this help you get deals?
Simple.
Before you go to your next appointment, I want you to sit down and write out your list of criteria – for deals AND for sellers.
What’s your ideal property? What sellers are easy to work with?
You should already know the framework for this, but take the time now to write it down.
Here’s some examples:
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3 bedrooms, 2 baths
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< $150K Value
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Single-family detached
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Seller has a definite timeframe for NEEDING to sell
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Primary concern is selling quickly, NOT selling for full price
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Willing to take a 30-35% discount in exchange for guaranteed results and speed of transaction
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Can show with 24-hours’ notice
Just think about the perfect situation that would make a deal go through without a hitch.
Those are you criteria. And they’re the criteria that we’ll make our sellers live up to.
You’re doing this for Their Benefit
It’s very important that you frame this qualification process as for their benefit. Remember, that’s all they care about anyway. So you’ll build trust when they see that everyone’s interests are aligned.
Let them know that your list of criteria makes sure that THEY get the most value out of their time with you. And it ensures that you can give them the most accurate insight on how to solve their problem.
When they see that your qualification process is for their benefit, they’ll want to qualify themselves even more. Perfect.
It’s important that you’re firm with your criteria, not apologetic. You’re doing this for them! You’re strict on the points listed above, because ultimately, it’s in their best interest.
It’s also in your best interest. Because you can weed out the tire-kickers and otherwise unqualified leads right off the bat. And you can hone in on the red-hot leads in a heartbeat.
Give them a “Reason Why”
People demand to know why things are the way they are. So be prepared to explain why you’ve set your business up this way.
Yes, it’s for their benefit, but your sellers weren’t born yesterday. They know you’re getting something out of this deal, too. Be upfront, in a way that further positions you as the best, most exclusive option.
Here’s some lines I’ve used with great success (loosely borrowed by Dr. Frank Kern of IM fame):
“We’re a little different than some other folks around town in that we only contract a limited number of properties at a time so that we can be laser-focused on delivering results. Because the only success we accept is 100% - no exceptions. That means we only work with clients/ sellers who we are CERTAIN we can help. In the long run, it’s better for us and it’s better for the families we work with. Here’s who we can help…” (Then explain your criteria.)
As an added bonus, this subtly plants a seed of doubt in the mind of the seller as to whether other potential buyers can perform 100% of the time. (This framework can be used on the phone, in person or email).
This ONLY works if you do THIS…
You can make them qualify themselves all day long, but if they don’t really think you can help them, then your approach won’t work.
So make them believe!
If you’ve already got some deals under your belt, tell them detailed stories of how you’ve helped people (like them) out of terrible situations. If you’re working on getting your first deal, tell them in vivid detail all the ways you make sure their property will get exposure and ultimately get sold.
Hammer it home that these are the kinds of results you deliver every time for THE RIGHT KIND OF SELLER.
And if they can meet the strict, but fair criteria you’ve listed above, then you’ll be happy to take care of the situation and put a contract on their property.
Now You’re Dominating the Power Dynamic
You’re no longer asking to put their property under contract. You’re making them ASK YOU for help.
Who do you think has the negotiating power on the terms of the contract?
When you present yourself like this, you instill confidence and enthusiasm in your sellers. And honestly, their confidence makes you more confident, so say hello to the snowball effect!
Think about how much control you’ll have over the process now.
I Know You Won’t do this, but…
This lesson deals with some extremely powerful psychological techniques and my assumption is that you will only use them for positive purposes – to genuinely help desperate sellers and to make profit in your business.
These same tactics can be used to hoodwink and trick people, but that’s ALWAYS a bad idea, because:
That’s messed up to do to people; and
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Shady investors get a bad reputation that they can’t shake – and that costs them more than they ever made by screwing people.
So make promises you’re committed to following through on. Think about the long-term health of your business.
*Rant over*
Put it to Work…
The Basic Formula when talking to sellers is this:
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I’m happy to help you.
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Here’s how you know I can help you.
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Here’s how great it will be when I’m done helping you.
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Here’s what you need to agree to in order for me to help you.
You’ll be amazed that the harder you push them away with strict and firm requirements, the more certain they are that you are the right guy or gal for the job.
Cheers,
Doug Van Buskirk
How about You?
Can you think of a recent situation where this approach would have worked particularly well? Share it in the comments section below. And of course, if you have any questions, comments or ideas, post them below as well.
Make sellers desperate to work with you by making what you have sound special and exclusive.
Impart to sellers that your deal is for their benefit.
Provide sellers with an answer to why you’re offering your deal, which is because you want to help them and you only work with sellers you are certain you can help.
Follow the basic formula I noted above when talking with sellers.