When attending an appointment with a motivated seller, you want to put your best foot forward. You have an hour or so to build rapport with the seller, to figure out their motivation for selling, to highlight your expertise, and provide an educated offer on the property.
It’s a lot to accomplish in a short amount of time but if done right, you can come out ahead. If not, your offer may not even be considered and they’ll move on to another investor who has built up a better relationship with them.
The below 4 mistakes can easily be deal breakers.
1. Not Building Rapport with the Seller
Make a point in the very beginning of the appointment to let the seller know that you want to learn more about what’s going on so that you might be able to be a solution to their problem.
Have a seat with them and ask a few questions about how long they’ve lived there and why they’re wanting to sell. The goal is for them to open up to you so you can really find out their motivations to need to sell quickly.
Don’t worry so much about the details of the house. You should already know how many bedrooms and baths there are. You’ll see the condition of the property as you have them walk through the property with you.
Look for ways to connect to them on a personal level. If there’s photos of kids on the wall, share a story about your family that they might relate to.
This is an emotional time of their lives and building up their trust with you can be what they’re looking for in a buyer.
Always be honest with them.
If you don’t know an answer, don’t fib your way through it.
If you might not be able to help them out, let them know that while your offer might not be what they’re looking for, that you’re going to be up front and provide them with your best offer.
As you get to know them and their situation better, the information you need to know will come easier.
2. Coming Across as Insincere
If your mind is set on how much profit you can make with a property, it’s going to be evident to the seller.
They understand that you’re going to need to make some sort of profit, but it shouldn’t be the priority when talking with a seller.
Come into the appointment with the seller’s needs in mind. Remember that they’re going through a rough time in their lives and you’re there to help them out.
Not to make a profit.
Listen to their story and like we mentioned above, find ways to relate to them.
If you can be honest with the seller, it will go a long way.
3. Lack of Expertise
Before you attend an appointment, you should have gathered comps for similar properties nearby and be an expert in that neighborhood and city.
Look for comps within about a mile of the property, with similar square footage, layout, amenities, and condition. Ideally, you’ll have comps that are fully rehabbed and others that are in need of a rehab.
Consider:
- Age
- Sq footage
- Layout
- Proximity to property in question (same subdivision)
- 1 story or 2 story
- Number of garages
- Age of sale (was the comparable sold a year ago or a week ago?)
- Condition
Get to the appointment early so you can scope out the neighborhood and help your understanding of the neighborhood.
If you go into an appointment and don’t know the facts about the area, it’s going to be difficult for you to highlight your experience and expertise.
This goes back to building trust and rapport with them. If they can’t trust your answers, they’re not as likely to feel comfortable pulling the trigger and signing a contract.
4. Failing to Follow Up
Many, many times… the seller is not going to be ready to sign a contract after your first appointment with them. They might need to talk it over with their spouse or might be getting offers from multiple sources before making a decision, as two examples.
Whether they make a decision in a day or in a year, you want to be in contact with them.
After a meeting that doesn’t end with an offer being accepted, have someone from your team (or you if it’s just you) reach out and get feedback from the appointment and see what’s going through their head. If you’re having someone else call, they can ask questions about the offer and how the overall appointment went.
Don’t stop there.
Use different forms of marketing to send to them on a consistent basis.
This can be by direct mail, email, voice or text blasts, etc.
The goal is that whenever they’re ready to sell, your information is in front of them.
When you aren’t following up, you’re losing out on deals!
We’ve gotten a deal from an appointment we went on YEARS AGO, because we kept following up.
Don’t Miss an Opportunity for a Deal
Most likely, there’s been a good amount of money leading up to this appointment! Spend the time needed to be prepared for the meeting and answer any question that comes your way honestly.
Make it about the seller and if possible, be the solution to their situation.
And finally… go close some deals!
