Motivated sellers are the lifeblood of wholesaling businesses.
These people want to sell fast for cash and they’re willing to accept a cash offer that’s below total market value. For investors like you, the motivated seller demand means healthy profit margins and consistent business.
But what is a motivated seller really?
There are a lot of misconceptions about how motivated sellers think, what they want, or even who they are. And here, we’re going to go over three of the most common misconceptions.
These will make a difference in how you talk to motivated sellers and who you consider as being motivated.
Here they are!
1. Assuming That Distressed Property = Motivated Seller
There’s a common misconception among new wholesaler that someone with a distressed property will naturally be motivated — that they will want to sell fast for cash and that they’ll be willing to take a low offer.
Conversely, the misconception implies that people with big, beautiful homes are not motivated.
But that’s not always the case.
While distressed properties are an indicator that the owner might be motivated to sell, it’s by no means a guarantee. Likewise, owners of well-functioning properties are sometimes willing to sell fast for a low cash offer.
The lesson here is not to make preemptive assumptions about whether a person is motivated or not.
You might be surprised at who is and who isn’t.
2. Assuming That Asking Price = Level of Motivation
One of the most important questions you can ask a prospect while they’re on the phone is, “How much are you hoping to get for the property?”
And again, while this is a useful indicator of the seller’s motivation level, it’s by no means an end-all answer.
If someone tells you that they want to sell for $150,000, believe it or not, that doesn’t mean they will reject your offer of $100,000 in a few day’s time.
Remember: motivated sellers are making decisions with emotion, not logic.
So the first price they mention might well change within a couple of days… or even a couple of hours.
Don’t be afraid of offending people with your low-ball offer and definitely don’t start ignoring the seller because their asking price was too high.
Just make your offer, listen to their objections, respond as best you can, and let them make the final decision. And if they say “no”, keep the third point in mind.
3. Assuming That No Means No
What does it mean if a seller tells you “no”?
Does it mean that they never want to work with you? Does it mean you should never contact them again? Or does it mean something else?
Actually, it’s pretty simple.
When someone says “no” to your offer, that just means “no” right now in this moment. But what about in a few hours? Or a few weeks or months? What about in a year or two?
There’s no telling the emotional journey that your prospects will go on — but it’s those emotions and that will determine whether the seller decides to work with you.
And it’s no secret that emotions change quite often.
That’s why it’s so important to follow up with your prospects consistently and over a long period of time. You probably be suprised by how many of those “hell no” sellers end up saying “hell yes” in a few months.
Stick with it, offer what you can, and don’t make too many assumptions about who is motivated and who isn’t. Just stick to the system.
That’s our opinion, at least.
But what do you think? Let us know what your misconceptions were about motivated sellers when you got into this business!