How to Make Cash Offers that Reasonable Sellers Can’t Ignore

“Hahahahahahaha!” His laugh was genuine as if I had just told a joke.

“Now why the heck would I do that?”

I had just made him an offer. He owed $85,000 on the home and, as the comps turned out, $85,000 was the best I could do. I had started by reminding him of the challenges he must be going through, of how escaping from his situation would be a real win.

Then, I offered him $85,000. And he just laughed.

It was frustrating, discouraging, and even made me feel a little dirty – like I just tried to rip someone off.

But that’s not the truth.

In the same way that Sears, Taco Bell, and Starbucks sell products for more than they buy them, you and I purchase houses and then turn them for a profit.

We are running a business, after all.

Still, we hope to help people along the way.

Heck, you probably have helped many people.

And to help you help more people,

Here are five steps toward making cash offers that reasonable sellers can’t ignore.

How to Make Cash Offers that Reasonable Sellers Can’t Ignore

How to make cash offers step #1: Ask better questions

Not all questions are created equal.

If you ask a prospect, for instance, “Do you want to sell your home?” you’ll likely get a bit of a stupefied answer “Um. Yes.”

(they called you, didn’t they?)

But if you ask “How quickly do you need to sell your home?” you’ll get more details about the seller’s situation and why they want to sell.

Better yet, “Why are you interested in selling your home?” gets to the real crux of the issue and provides you with valuable information about…

  1. How motivated the seller is to get rid of their home quickly
  2. Exactly why they want to get rid of it
  3. And even what kind of offer they’d be likely to accept based on their level of motivation (for more information on this, ask em’ straight: “How much are you hoping to get for your home?”)

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The better that you understand your prospect and their situation, the better you’ll be able to sell them on the offer you make later.

Beyond all of the due-diligence questions you’ll need to ask the seller about their home, repairs needed, etc., here’s a helpful list of questions you can use to understand the seller better.

  • If I make an offer to buy your house as-is, what is the least you’d be willing to take for it?
  • Why do you want to sell your home?
  • How quickly do you need to sell your home?
  • What’s the most frustrating thing about your current situation?

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How to make cash offers step #2: Do NOT lead with your offer

It’s tempting to write your offer down (maybe even a quick sentence about how you’re going to phrase it), hop on the phone with the prospect, and after a quick “how-are-you”, “good-good” exchange, dive into your pitch.

Maybe you try to do some explaining first. Or maybe you just hit em’ with it.

But there’s a better way. 

By the time you’re ready to make an offer, you’ve had some interactions with the prospect.

Ideally, you’ve built a bit of a relationship with them. You understand them. You can empathize with them. You want to help them.

In that context, the worst thing you can do is dive straight into business-talk.

Instead, start with friendly banter. Ask them about how things are going, how they’re doing emotionally, and how their family is holding up.

Even ask about things they’ve mentioned in the past (take notes during each conversation) to show that you’ve been paying attention.

Allow this phase of the conversation to last for 15 or even 30 minutes if there’s not too much push-back from the prospect.

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You want the prospect to know that you’re on the same team. That you have their best interest in mind. And you want them to know that before you make your offer.

Then, once you do, they’ll be more likely to consider it instead of laughing at you or hanging up the phone. Your friends now, after all.

If they do say ‘no’, though, then you should ignore them…

How to make cash offers step #3: Ignore the seller when they say ‘no’ the first time

When the seller says ‘no’ the first time, it’s usually just a gut reaction.

The offer was lower than they expected. They didn’t know how to react. So they said ‘no’ without really thinking about it.

After all, you and I both know how often we say ‘no’ to something, only to rethink it later and wish we considered our options more carefully before making a decision.

And that’s exactly what you want to help your prospect do.

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Help bring the conversation back into the realm of logic and out of the gut emotional response. Explain to them the pros and cons of working with you vs. a real estate agent. Explain to them the reality of trying to rent their home or fix their home up.

A lot of times, working with you really is the best option for the seller – whether they know that or not.

Gently explain to them why the “options” that they claim to have might not be as good as they seem. Then explain to them exactly why your offer is what it is and why they probably won’t finder a higher one elsewhere.

You can even bring your comps along to back you up.

Then, it’s time to remind them of how your offer could completely change their life…

How to make cash offers step #4: Explain how your offer could change the seller’s life

To you, buying and selling real estate isn’t all that magical. It’s one part cash, one part determination, and one part hard work.

But to the seller…

…to the seller, what you do is kind of magical.

You give them cash for their home in just a matter of weeks. You pay closing costs. You buy it as-is. And you give helpful advice along the way.

That’s how it should be: magical.

But here’s the thing: most prospects probably haven’t been in this situation before and they probably haven’t ever worked with a real estate investor like yourself.

So while the whole thing seems mundane to you, your prospect is quite unfamiliar with all of it.

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Which is exactly why you should spend more time walking them through the tangible benefits of working with you. This will cast a vision for them working with you and inspire them to take action.

It will show them that you really are the person to solve their problems.

The other way to inspire them to take action is by telling them a story…

How to make cash offers step #5: Tell a story about a past prospect that was “very similar” to your current prospect

At Carrot, we tell tons of stories to our audience (you).

We tell the story of Brian Rockwell, who quit his job as a middle-school teacher, joined Carrot, and made $700,000 his first year as an investor.

We tell the story of Tyler Ford, who was ready to quit real estate after 20 years of investing, but found Carrot and had his most profitable year in 2019 because of SEO leads from his website.

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Why do we tell these stories?

Because they’re inspiring for our audience to hear. They’re relatable.

After all, what real estate investor hasn’t been frustrated with their business?

Who hasn’t wanted to quit their 9-5 job at some point and find financial freedom?

These stories illustrate that our audience’s dreams are possible and that Carrot can help.

You can use the exact same tactic when you’re talking to the seller. Choose a few compelling stories from customers you’ve worked with in the past write them down and recite them to people who need some encouragement.

(“Ya know, we just recently worked with someone who was in a similar situation and…”)

And don’t forget to mention the ending – when your business came to save the day and change that person’s life for the better.

That’s the most compelling part.

Stop getting ignored…

You don’t want sellers to ignore your cash offer after you make it. You don’t want them to laugh at you maniacally, and you don’t want them to hang up before you can even explain your offer in more detail.

Those kind of interactions aren’t just bad for business, they’re bad for your ego.

They’re frustrating and discouraging.

They make you feel like you’ve done something wrong when you haven’t.

But you can use the above five steps to make more offers that reasonable sellers can’t ignore, offers that help you build the business that you’ve always wanted to build.

One where you close consistently and get laughed at less.

And where you’re able to help more people.

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