Hi, gang this is Mike with My Real Estate DOJO and today’s lesson is about how to negotiate with a motivated seller with the technique that I call the emotional closing.
What is emotional closing? There are sellers out there that are not logical and they are emotional. What I mean is they go with their gut feelings, they go with their emotions and not really numbers. If you are sitting there negotiating with them with the numbers you’re putting them to sleep. You are boring them, you are not dancing to the same music they hear.
They may hear country and you’re dancing with them with reggae or that’s not going to be a nice partnership in the dance form. It’s very important that you hear the same music the seller is hearing and you’re dancing the same steps as the seller. What do I mean by that? When somebody’s emotional motivated seller, you are going to have to use a different set of closing procedures to get the deal, to build credibility, to allow them to make a decision.
Let’s go ahead and break down the emotional closing, so you can get an understanding of how to get a deal with a motivated seller and profit. Step number 1 is whenever you talk to a motivated seller you want to ask them “Hey, what do you want for the property?”, whatever number they say, do not argue with them or say “Okay” and move on to your next questions. The questions you need to be asking them is my seller phone script.
If you don’t have my seller phone script, go ahead and download it, because its going to help you negotiate with the seller in many different ways from owner-financing to getting viable, crucial information from the seller to structure the deal. Again, the number 1 thing is you are going to ask the seller what they want for the property, number 2 thing you are going to do is you are going to ask them the Mr. Investor seller questionnaire form.
For example, the general stuff like how many bedrooms, bathrooms, what year it was built etc. See the seller’s script for that information. Now, step number 3, you are going to come back and you’re going to ask the seller again- hey, if I could close quickly and solve your problem, you should already know what that problem is, because from the seller’s script you are going to get that information, so lets reverse, now add step 3 you are going to ask the seller “Hey, Mr. Seller, if I buy your house quickly and solve your problem and help you move to the next chapter of your life, what would you sell the house for?” Now you are just going to shut up and listen to what the seller says. Whatever the seller says, you are going to keep mental note and know what that number is. Now you are going to go step number 4 – now we want to ask the seller why do they want to sell their property, what’s their situation.
This is a very important question, because what we are doing here is not only getting the reason why the seller needs to sell, but helping the seller recognize and remember why the hell they called you in the first place. Again, the question is “Hey, Mr. Seller, why do you want to sell this house? What’s your situation?” it’s going to help the seller remember all the problems and why he called you in the first place and why he decided to sell the home in the first place. This is a very crucial question. For the motivated seller this is the time they are going to talk about heir problems. If they don’t, then you are not talking to a motivated seller or you don’t have enough rapport with them.
Step 4 is a very important step guys. Now step 5 is that once again we are going to go back and ask the seller “If I could close very quickly and solve your problem, what’s the best number you could let the property go for to close quickly”. So you are going to ask that question again. This seems like repetitive and there is a reason for that and I’ll explain it later, alright guys.
The next thing you want to do is ask the seller about the condition of the property. For example, what needs to be done to the property to get it into tip-top shape? Is the floor in good condition? Are the major components of that home in good condition etc. Now you are going to come back again for the 3rd time and ask the seller what is the best price they are willing to sell their home for.
It is crucial that after that you don’t say anything and let the seller talk, alright guys? This is crucial. What I’ve done is asked the seller what they want for the property, number 1 and I never objected it. Then I asked them general questions about the property: how many bedroom, bathrooms etc. Next I tell them again that i am very interested in buying the property and what is the best price they are willing to sell me the property for. Next I am going to ask the emotional question which is why you want to sell the property, what’s your situation.
Help them realize why they called you in the first place and why they are having a problem. Once they’ve answered that emotional question, then I am going to come and ask them, what’s the best price they are willing to give for the property again. Once they answer that, I never object. I say “okay, got it”. Never object whatever number they say. Then I will go and ask them more questions about the condition of the property and get all the facts there. Now what I’ve actually done is ask what price they want, ask general questions about the house, ask again what price they want and you will notice the price will come down from the first one, usually.
Then I ask them emotional questions and they realize why they are in this situation and then I ask them again what is the best price they are willing to go for. Now they are probably going to lower the price even more, because they thought about all the problems.
Next, I got to ask them the condition of the house, which is basically another reminder of the bullshit in the house that needs to get done and why they are in the situation they are in. Finally, I ask them one more time “Hey, if I can close on your house quickly and solve your problem, what is the best you can do for me to get this deal done and create a win-win situation?” And every time, i don’t want to every time, but majority of the time you will notice that my the 4th time your asking that question, the price would have gone down significantly from the time you’ve ask question number 1, which is what you want for the property, to the 4th time you ask it.
That’s what I call an emotional closing, because the seller is emotional and you’re helping them use their emotions to understand their situation and why they called you and why they are going to sell it to you for whatever reason is and for you to get the deal and create a win-win situation. Again, the emotional closing work really good with sellers that are not logical.
The idea of a logical seller, who wants to see all the numbers, then I have a logical closing, which video you need to watch. What I can do is use all my closing options at one time or throughout the time if I sense the seller doesn’t like it. If I think by what the seller has been saying that he is emotional and I start emotional, but if they start asking me logic, then I’ll start using that offer too, using both offers. It doesn’t mean that if you have only one closing option and the seller is emotional, you can’t use the logical closing.
You’ve got to use all of it, you’ve got to understand which way does the seller lean to the most. Are the emotional, are they logical or do they need the fairytale closing? Do they need the 1,2 closing or they are what I call a deadbeat closing. I have 5,6 different types of closing for different sellers out there, so this is one of the 5,6.
Make sure you go to my YouTube channel and watch the other ones, guys. Now this is Mike with My Real Estate DOJO. Go out there and hustle and bustle, don’t take ‘no’ for an answer guys and keep chasing your dreams, don’t listen to the nay-sayers.
Stay tuned and I’ll talk to you later, gang! Have a great day!