03 SELLER OBJECTIONS & REBUTTALS Flashcards
O: What is your offer?”
A: I completely understand why you would want to know that right away. At the moment I can’t say a figure as I still have to ask a little information about your property. Anyway, Our Homebuying specialist will give you a fair price depending on the condition and location of the property.
O: “How did you get to that price/number?”
A: “Based upon a formula we use that relies on price per square footage and condition, we know what kind of price range we need to be at to make the deal work. We buy about 15-20 properties a month. Sometimes, we buy these properties sight unseen…so as long as these numbers fit in our formulas, we know what range we need to be in.
O: “I’m shopping around for the best price possible…”
A: “We don’t like getting into bidding wars. It’s just bad business and typically, we’re one of the highest and best offers. I’m not sure who else is giving you an offer—I don’t know if they have proof of funds or if they can close quickly. But if you want to go with them, I completely understand…”
OR
“You know, I can completely understand you want to get the best price possible for your property. I’m not sure who the other buyers are, BUT this is a price I can commit to today. Next time I call you, I can’t promise you the same price because we buy so many properties a month. So, I can’t promise you the same price, but we’re usually the highest and best offer.”
O: “I’m not giving you any price, Make me an offer?.”
A: “I understand you are interested in what we can offer for your property. Please know that we are professionals and will be evaluating a large number of properties every day. We need to have an idea if we are in the same ballpark or not so that we don’t waste any of your or our time.”
O: “I’m sorry, but that offer price is too low. I really need to make $XXX.”
A: “Well, we’re not the right fit for everybody. We are an investment company, so we don’t pay above market value. However, we can take care of the closing costs and other fees, but we have to be at a price that makes sense for both of us. So we really have to be around [this range]. Taking all of this into consideration, what is the best price you can do?”
If they say “no” to your offer or your range, but they’re still interested in selling, don’t give up. Say:
“We are an investment company. Like I said, we’re not a good fit for everyone, but we have to be within this range. So, let me ask you this, if there were a price you would be interested in selling for, what would that price be?
Let’s say they give you a much lower price than you anticipated. You could say something like:
“I think that’s a great price on the open market. But as far as a cash offer goes, our numbers are just too far apart. If you were listing it, you might be able to get that price range—but keep in mind you’ll have closing costs, fees, etc.”
O: “According to the tax appraisal website (or the Zestimate), my house is valued at this amount…”
A: “No, I think that price range definitely makes sense on the open market. Like I said, we are an investment company—so we don’t pay above full market value. So, maybe an all cash offer wouldn’t work for you.”
If they want a specific price, you can restate the pros and cons redirect them to the listing:
“Remember, we are an investment company, so we don’t pay above full market value. You could list the property on the open market, but that could take 30, 60, 90 days. There are closing cost fees, commissions, all that involved. However, if we bought it cash, we would have to be at [this price], and we’ll take care of all those fees and headaches for you. Is that something that’s important to you? Are you looking for top dollar, or a quick sale?”
If they respond with “both”, you can say something like:
“Well, that’s the magical third option that really doesn’t exist. However, if you want top dollar, then a listing is definitely the way to go. But, if you need to get rid of this house quickly, that’s something we can help you with. But we have to be at a price that makes sense for both of us. I’m sure you can understand. Does that make sense?”
O: “How did you get my information?
A: I was hoping that you’d bring that up. Our marketing department pulls that information for us. That’s how we acquire your information not to mention that each of the property in your area can be accessible through public records. I just simply want to know if you have a property to sell.
We got it from a third party marketing company, but don’t worry, your details are safe we only use it to look for properties for sale.
O: “How can you guys make an offer without looking at it?
A: “Well, we buy so many properties a month in this area, so we are very familiar with the neighborhood and the area. And based upon the condition of the property described to me—and based on our formulas and price per square foot in this area, we know what kind of price range we have to be at.”
O: “Have you seen my house?”
A: No. I haven’t personally seen your home, but we are looking to buy a house in that area in as is condition we pay cash without any transaction fees, commissions so you get most of your money no hassle at all.
O: “I have to talk to my wife or husband before I make a final decision.”
A: “Sure, talk to your wife/husband. I can completely understand that’s something that you need to discuss with her/him. So, tell me, what would be a better time for me to call and check back to see how your conversation went?”
If they still need to think about it and say they’ll call you back next week, you need to ask them:
“I don’t want to waste your time or mine—so if you are interested in selling, what would be your deciding factor between today and next week?”
O: “I know what you guys do, you make low ball offers”
A: “I’m not going to hold that against you as you may have dealt with them first hand or heard it from someone. However, our offers are reasonable and well thought out as we evaluate each on a property by property basis as to what has been recently sold in the area.”
O: “I’m in no rush. I need some time to think about it.”
A: “I completely understand. This is a big decision. What is it that you need to think about that I can address right over the phone for you—that would be your deciding factor for selling?”
If they STILL want to think about it and say, “Oh, I need to think about it…just call me back next week…“you ask that key question again and dig into it more…
“Well, what would be a deciding factor between today or next week in regards to selling the property? What would change?”
Again, if they say to call them back at a later date, you can say something like:
“Well, it seems like you’re not really interested in selling the property. If that’s the case, I can completely understand, but if you are still interested in selling, I love to help you with that.”
O: “A realtor told me I could get a lot more If I work with them instead of investors.”
A: “I bet they did as they would like to secure their listing. But if you’re going to do it with us, you don’t have to worry about any Realtor fees and commissions. You get most of your money. Not to mention, we close quickly as we are cash buyers.
O: “I think I’m just going to rent the property.”
A: “Oh, I can completely understand. Just out of curiosity, what made you change your mind from selling to renting it out?”
Then once they respond, say:
“Oh, that makes sense. So what would be your deciding factor between selling it and keeping it as a rental property?”
If they respond and their response is still leaning towards keeping as a rental, you can say something like:
“Okay, so no matter how much we paid you and if we covered all the closing costs and fees [state all benefits/value], you wouldn’t be interested in selling at all?”
O: I would rather fix up the property myself and make a profit.”
Here, you would apply the “negative takeaway”:
A: “Yes, you can actually do that. But, it might take you awhile to get that done—we’re talking repairs, there’s going to be closing costs, fees and commissions on the back end…but, if you want to do those repairs now and go that route, then that’s completely okay. However, keep in mind, if we bought the property as is, we’ll take care of the closing costs, fees, commissions and everything else. You won’t need to do any necessary repairs—it just depends on whether you’re looking for top dollar or a quick sale. If you’re looking for top dollar, then we’re not the right fit for you.”
O: “I’m going to try listing it with an agent again…”
A: “I think that makes sense. That is an option you can do. But it might take 30, 60, 90 days on the market and you’ve got closing costs, commissions, repairs, and financing might fall through. And, you know, as an investment company, we have to be at a price that makes sense for both of us. So, we’d love to help you if you’re open to selling the property, but we have to be at this range.”
O: “With my situation, I think I may need to file bankruptcy instead.”
A: “Why would you want to file bankruptcy? Is there any specific reason you just want to do that instead?”
Let them answer you and then you talk about the “cons.”
“You know, your property—this is something we can help you out with. You only owe [this much] on it. We can buy it for around [this amount], and you will be able to save your credit. I know you don’t want this on your credit!”
If they would rather move forward with their decision, then there may be other factors outside selling their property that are in play.
O: “I have no place to go once I sell.”
A: “I can understand. The good thing about our company is that we can move at YOUR pace. We often deal with homeowners in your exact scenario…where they need to find a new place before they move. Well, the good thing is—if we agree on a price, we can send you an over an agreement, and while we’re doing the work on our end, I’ll have one of our agents reach out to you and ask you exactly what you’re looking for, your current area, budget, location, and they’ll be able to help you out. So, we can help you find a place before we even close on the property. And once we help you find a property, keep in mind we already have an agreement in place—so we’re not going to close on buying your property until you’ve found a property to move into.”
O: “I’m not ready yet, this is all happening way too fast…” / I’m not sure I will sell.
A: “Yeah, I can completely understand. The good thing about our company is that whether you want to sell today, or in two months, three months—it doesn’t matter. I want to let you know there’s no rush at all. We can move at your pace. Does that make sense?”
O: “I’m just not comfortable with some things in the contract…”
A: “No problem at all! What things in the agreement can I answer or clarify for you?”
O: “Why is there an inspection period listed…”
A: “Well, we do have to confirm everything we discussed over the phone and walk through the property. We’re going to have our partners at the property with us. As long as everything is just how we discussed and all looks good, then all should be okay. But, if we go out to the property and the house needs massive repairs or if it’s a tear down, then the deal obviously won’t make sense. So that’s the reason for inspection period—it’s put there to protect us. But like I said, once we go there and confirm everything looks good, we’ll move forward.”
If they give pushback, you always want to do a “takeaway”. You can say something like:
“If you don’t want to sell, that’s okay, I completely understand. You know, that way they just kind of come back and say, oh, but I do want to sell. Well, this is how we do business, and this is how we are able to buy 15, 20 properties a month.”
O: “Why is there such a low earnest money deposit…”
A: “I understand, but unfortunately, this is our company policy that this is the amount we put here. We’ve bought million-dollar properties and $100,000 properties with the exact same amount of earnest money. So, if you’re not interested in selling your house, I completely understand, but this is how we do business.”
O: “I want to use my own title company for the closing…”
A: “I understand that, but since we do a significant amount of volume with our title company, we get a great discount on all of the fees and other costs—and they’re insuring us. So, we would have to go through our title company. If you don’t want to sell your property, I can completely understand….”
O: “Out of Scope questions”
A: “I’m glad you brought that up. I don’t know a lot about that, but I do know that these are the types of questions our Home Buying Specialist can answer for you. I will inform them about your concern and they will reach out to you with detailed answers.
O: Who are you? What do you guys do?”
A: Sure. It’s pretty simple actually. We buy houses in cash, and in any condition in the local area. We do any fixing or updating they need. Then, they might be sold or rented out. We pay for all the fees associated with the transaction. No hassle, No headache.
O: “The house is full of junk, do you need me to clean it out?”
A: “Good question. Not a problem at all, We buy properties in an as is condition and whatever current situation its in.’We make the process quick and easy, You can count on us.”
O: “Will they come out to visit the home?”
A: “Good question. It usually starts with a phone call and sometimes it leads to a walk through, other times it doesn’t. That’s between you and the home buying specialist. That’s really all I know.
O: “You should know my address / my info?”
A: “I understand your expectations, but let me explain how we obtain your information. We get a list of nearly two thousand names and addresses from our marketing department. Since there are so many, we do not know which address is yours.
-We do have access to a lot of information, but what we don’t know is the exact condition of the property, or any updates or changes that might have been made. Those can have a big impact on our offer. Is it ok if I ask some questions about the property so we can put an offer together?
O: Can we email you?”
A: “Sure, when the home buying specialist calls you back they can give you their direct contact information.
O: Where does your company operate?
A: I’m glad that you asked. Anywhere throughout the greater Northwest (Oregon, Washington, Idaho, Northern California) but we will go anywhere we feel there is a good enough opportunity.
