Foreclosure lists are a great resource for finding motivated sellers, but the competition for these deals is substantial. People in foreclosure are inundated with mailers and calls, so the investor who can answer the seller's questions and make him feel good will likely get the seller's trust and ultimately the deal.
Every investor needs a script, that is, a pre-defined set of words to respond to a seller's common objections. All good sales people work from scripts, and everyone has a script already in their head. Remember, a script is nothing other than a predefined set of words in response to a question or situation. So, if you don't refine your script, the default one in your head will take over, and often lead to saying the wrong things!
Here are some of the things from our script I teach :
Objection: Another Investor Said That They Would Give Us $5,000.00
Counter Objection: “Really? I'd take that offer in a heartbeat if I were you! But, here's the thing… based on my experience, I'm not sure how another investor can promise you $5,000.00 if they haven't spoken with the bank and haven't received a commitment letter from your lender yet, so that tells me that this other investor may be just telling you what you want to hear. Is that possible, Mr. Seller? Here's a tip, Mr. Seller – ask the other investor to sign a $5,000 promissory note for the money, due at closing. If he won't sign the promissory note, then you will be able to know how trustworthy he is, does this make sense? I can't promise you any money right now because I honestly don't know what I can work out on this until we meet, review your details and I speak with your lender. Regardless of whether or not you'd want to work with us, do you think you should be working with someone who will be honest with you and not ‘sugarcoat' it? Are you with me?”
Objection: I Want To Be Able To Stay In The House
Counter Objection: “I understand you don't want to move, it's a very difficult thing. Unfortunately, if we purchase the house, we can't rent the house back to you and I would be careful of an investor that says they will do that because there have been some shady practices where that's concerned. The good news is that virtually every seller we've worked with is actually really relieved when they get out from under the house. For the amount of mortgage payments you are making each month, you can practically rent a palace for that! It is such a renters market, that I think you'll be really pleased to see the great houses/condos available to you at a fraction of what you're paying now. I can give you a website where you can find great rentals in your area at a price you can afford. The bottom line is that I think you'll feel a lot better just putting this whole situation behind you and getting a fresh start in another home. Does this make sense?”
Objection: I Have A Friend Who Is a Realtor Who May Help Me
Counter Objection: “Basically most realtors don't do short sales which can be a real detriment to you and the most importantly the realtor has to wait until an offer comes in to submit to the lender, (if that offer comes in) whereas we put the offer in immediately and start negotiating with your lender right away”.
Objection: How Can I Trust You?
Counter Objection: “You are smart to be skeptical, Mr. Seller, and I would be if someone I didn't know was knocking on my door or calling me on the phone. Unfortunately, nothing is 100% guaranteed and, but I can tell you that I've worked with (dozens/hundreds) of people just like you who are really glad that they had someone like me to work on their situation. The bottom line is you are going to have to ultimately choose someone who you can trust, right? You don't have many options right now; if you don't trust someone, your house will go into foreclosure and there won't be any option left. So, let's just go with the assumption for now that you trust me, and I trust you, then we'll go forward, does this sound good?”