Don’t negotiate with a seller until after they are sold.
– John Martinez
How to Deliver a No-brainer Offer & Close More Sales, Faster
Negotiation strategy and how to close more leads are important topics for all agents and investors.
In part one of our negotiation series, we sat down with returning CarrotCast guest, John Martinez, to discuss how to make the right offer, what questions to ask potential sellers, and what hybrid agent/investors can do to position themselves as trustworthy and knowledgeable experts.
Read the Full Show Notes Below…
Recently, the CarrotCast has presented our listeners with a series on SEO, one on Facebook, and now we are addressing negotiation and sales strategy.
In part one, we sat down with John Martinez, a third-time guest, and creator of the REI Sales Academy for real estate investors. He is a sales trainer, business owner, and successful investor. John works with some of the best out there, helping them to blast objections and close more deals.
Today you’ll learn what to avoid, what to say, and how you can up your negotiation game.
What Are the Biggest Mistakes People Make When Trying to Close a Deal?
#1 – Getting a Price from the Seller
A lot of investors will try to get a price from a seller right away, however, this often proves to be a bad idea. After talking with the seller, that number is going to change, so why use it?
Plus, hearing a seller request a high price can make a salesperson feel defeated right out of the gate. They likely won’t operate at the same level when they feel like reaching terms will be next to impossible.
#2 – Leading With an Offer
Typically, a seller is only talking to you because they want that number. Once they have it, the conversation is usually over. You need to sell them before you throw any numbers out there.
Learn about their motivation, but take it even further. Take them through the process so that they are saying, “I need help. I want to sell now.”
How Do I Get Past Objections?
John’s advice to handle objections is to face them head-on. People will worry about leaving money on the table and may feel they need to look around. As a salesperson, it is important to be transparent and credible.
Addressing common objections right away opens the door for you to close more deals in less time.
- Address other options and what they might entail
- Ask the homeowner if they are able to hold the house for another 5+ years and what that will mean for them
- Are they able to make the repairs themselves to resell at a higher price? And what will that look like for them?
- You’ll also want to address any concerns brought up by influencers – this includes the seller’s family, CPA, attorney, etc.
When speaking with a seller, let them know what to expect right out of the gate. Let them know why a direct sale will work and why it won’t before making an offer.
Even Trade of Value Negotiations
After a person is sold on the idea of working with you is when the true negotiations begin. When working with a seller, you want them to feel as if they have one. As if they have squeezed every dollar out of the sale.
You can do this in a few different ways, including going back and forth with the property owner on a price. You don’t want to offer more and more without taking something away.
Maybe you offer more if they make a decision right away, if they move faster, or if they clean out the house before they go.
Negotiation Strategies for Agent/Investor Hybrids
While being a hybrid is something we highly recommend, as John mentions, offering all of your options right away can be overwhelming. Instead, be upfront about who you are, without giving the seller a number of options to choose from. Instead, give sellers your expert recommendation.
Listen to their situation and present them with the solution that will be in their best interest. Only if that doesn’t work out should you mention that you also offer a plan B.
Ready to learn more from John? Get John’s Magic message and 6 questions to ask sellers along with others from the series at Carrot.com/Close
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Mentioned in This Episode:
- REI Sales Academy FB Group
- CarrotCast EP 150: Don’t Blow It! The Psychology of Negotiation: How To Talk With A House Seller to Close More Deals + Help More People w/ John Martinez
- CarrotCast EP 178: Become a Negotiation Master | Top Techniques for Closing the Deal w/ John Martinez of REI Sales Academy
Thank you very much for these tips. I’m a noob on this stuff.