Investing in real estate can certainly be challenging, but also rewarding. It is important that the investor be prepared for any and every situation that comes about. During the negotiations with the seller this is especially true.
In the buying and selling exchange, buyers and sellers negotiate out their wants and needs in order to get the best deal for themselves, so answering seller objections is a must.
Seller and Buyer Needs
Sellers will have questions that need to be answered. When considering questions, and more importantly objections, keep in mind that these are not negative signs during the negotiation process. In fact, objections are really positive signs where the seller is actually saying, “Please give me more information”.
Buyers will need to be able to provide answers that can satisfy the needs and in some cases the fears that sellers may be having. Investors should be looking for these ‘buying signals’, where the seller is open to the selling concept, but is still somewhat hesitant to move forward until more information is provided.
All the buying strategies that we have discussed in other articles require sharp negotiation skills. Each one has specific criteria that will require the investor to know what his exit strategy will be before the buying process begins.
In this article, the buying strategy will be the lease with option to purchase technique. The answers to the most frequently asked questions using this buying method will be discussed next.
Why don’t I just list my house with a Realtor?
“That is certainly an option, buy obviously a Realtor won’t
make your payment for you or take care of the maintenance
and repairs, while they are attempting to sell your house.
Also, according to a recent survey, less than half of the
houses listed with realtors sell during the initial listing period.
If you want to sell your house fast, you have to offer buyers
something special that makes your house attractive”.
What if the tenant/buyer causes damage to my house?
“Our objective is not to find a tenant, but to find a buyer who
will eventually own your house. We investigate them
thoroughly and provide you with all the information, so you
can make the final decision. Damages are rarely a problem.
In fact, in most cases we have found that buyers have
improved the house with new carpet or some other upgrades
such as fencing or a deck. If any damages do occur, the
tenant/buyer will be responsible to fix it at his expense and
that is in the contract. As the owner, you continue to
maintain homeowners insurance that should cover major
When will the tenant/buyer close on my house?
“We cannot determine an exact date. It will up to the tenant/
buyer to make that decision within the time frame they have.
We will place them in credit repair and monitor their
progress. As their credit improves we will have a much better
idea of when the loan application process will begin. In the
meantime, the tenant/buyer will living in the home, paying
the rent on time, and taking care of the maintenance and
Can your program really help me?
“Mr. Seller, I am a real estate consultant and have been
helping homeowners with the sale and leasing of their
homes for some time. I know what homeowners go through
when they try to sell their homes. You may be just in the
‘thinking about it’ stage or maybe you have tried to sell your
home ‘by owner’ or even listed it with an agent, without
“A real estate agent has a computer loaded with hundreds of
nice homes in great neighborhoods. Do you think they would
have the same feeling for your house as you do? Would they
really go out and put all their effort into selling one particular
house, or would they pick out a selection of houses to show
their perspective buyers? This is the strategy they use in the
hope of having them pick one house out of the lot”.
“You, the seller, have the most at stake. You should want the
largest pool of buyers, so you can get a fast sale and top
sales price. This is what the lease with option to purchase
selling method will do for you”.
“I don’t know of an easier or faster way to sell your house
or that can give you more money, with none of the hassles
normally involved when using traditional selling methods”.
Take some serious time to study these questions and answers. Don’t try to memorize the answers, but study to give the seller your answer in your own words, in a conversational manner. This will tak e some practice. Does some role play with a family member and get good at it. Once you are able to answer the seller’s objections effectively, you will be well on your way to real estate profits.
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