You do not need to know everything to get into this game. You do not need to know everything to be good at this game. What you need to know is that you need to be comfortable and remember you are talking to a human being.– Pace Morby
9 Magic Negotiation Phrases Guaranteed to Turn Sellers into Your BFFs
I challenge you to find anyone who gives more in this industry than Pace Morby. His energy, enthusiasm, and eagerness to learn something from every transaction have helped propel his investing career in a highly competitive market.
In part 3 of our series on negotiation, I sat down with Pace to talk about how he connects with clients to win more deals, even when he isn’t paying the highest price.
You’ll learn what to say, what to ask, and how to show credibility even if you’ve never done a single deal.
Read the Full Show Notes Below…
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Pace Morbey is one of my favorite guests to have on this show. We share a similar philosophy, of putting people first and bringing humanity back into business.
Pace works in a highly competitive market but is able to have a higher lead to close ratio because of his innate ability to connect with others.
This episode is packed with great info including 9 of Pace’s tips (Paceisms) on what to say when to say it, and why.
Paceism #1 – Give the Seller a Magic Wand
When negotiating with a seller, before giving your number, ask them what their number is. If they say they don’t know, have them pretend they have a magic wand. What would the scenario look like for them then?
This way you will get them to open up, learn their motivations, and how much they are hoping to get from the sale.
Now that you have given them the power to create any scenario, they are more willing to give you the number that will get them to sell.
Paceism #2 – Catch Me Up To Speed
This is a phrase Pace uses on almost every single one of his calls or meetings. When sitting down to discuss a property, ask the seller to “catch you up to speed.”
This is an open-ended question, that doesn’t come across as too salesy.
If they aren’t sure what you mean, you can ask how long they have owned the house, what they like about owning, and what they dislike about owning the property.
Paceism #3 – What Are You Being Offered?
Asking this question immediately addresses the elephant in the room if the seller hasn’t yet told you they are working with other buyers.
If you don’t discuss this upfront, you will be up against a silent enemy the whole time.
Plus, it will encourage the seller to be honest with you straight out of the gate.
Paceism #4 – I Want to Learn From You
Pace goes into every deal with a desire to learn something from the seller. He knows that he doesn’t need to be intimidated because it is simply another person on the other end of the line.
In many cases, the seller is older, and even when they don’t wish to sell, he will make it a point to learn more about them, their property, and how they came to own it. In a recent transaction, Pace was able to get $50k worth of training from a mobile home park owner, all in a simple one-hour conversation.
If they have owned the investment for 30 years, that’s 30 years of information they can share with you.
Building this sort of relationship also builds trust, which in the case of the mobile home park, turned into a deal for Pace, even though he wasn’t making the highest offer.
Paceism #5 – Talk About Craigslist
One story Pace often tells is about Craigslist. Everyone has likely sold something online. He will say… “You wouldn’t sell a car on Craiglist without listing a price would you?”
If you listed your car for sale and said to “make me an offer,” you would likely get very low replies. It is likely their largest asset.
If they wouldn’t request offers when selling a car, why do it for a house?
Paceism #6 – Find the Bunnies
When Pace first started, he didn’t even know what an assignment contract was. All he knew was that on his first deal, he had to buy the house for a certain price or he wasn’t going to be able to make any money.
His offer was well below what the seller wanted, but as he was leaving he asked if she needed anything else, moving, packing help, or anything else that goes along with a sale.
This stayed with her and when she was unable to find a home for two pet bunnies, she gave Pace a call. With the help of his Mom, he was able to rehome the bunnies and save the day. The next day the seller called him back and said she wanted to sell her house to him.
Because she trusted him more than the other guy. Pace advises all his students to look for all of the problems that they aren’t seeing. Find the bunnies.
Paceism #7 – Getting Abducted
Pace has an alien logo on a lot of his stuff and there is a good reason why. He does a lot of creative financing deals and in many cases, the seller will ask him what he will do if he cannot make his payments.
In response, he will gently remind them that he defaults, it may be the best thing that has ever happened to them. And that the only way this would happen is if he were to be abducted by aliens.
Paceism #8 – Planting the Seeds of Doubt
We know what would happen if Pace was abducted by aliens, but what would happen if one of those other direct buyers were abducted by aliens. What is to protect you if all of a sudden a buyer is unable to follow through on their contract to buy outright?
Pace will talk about earnest money, inspection times, and remind the seller that many of these so-called investors are people who have gone to one seminar and are trying to get rich from their mom’s basement.
After planting these seeds of doubt, he will go on to show them his website, testimonials, and the public record of how many properties he has purchased with his LLC.
Paceism #9 – Going Off the Script
People want to have a real conversation, not a scripted, formal speech that has been said a hundred times over. For example, Pace recently met with a seller who pulled up in a Chevy, he pulled up in a Ford.
Instead of introducing himself, he broke the ice by opening with, “you’re not going to kick me off of your property because I pulled up in my Ford are you?”
Instead of the same forgettable chit-chat, Pace opened with some humor to ease apprehension and humanize the experience.
Pace and his team are building a better reputation for the real estate investment industry because they truly care about the person on the other end. It is through this approach of building relationships that he has been able to stop hustling for more leads and instead close more of the ones he is already getting.
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Mentioned in This Episode:
- CarrotCast EP 217: How to Close More Deals with These Unheard of Subject-To & Creative Finance Strategies w/ Pace Morby