5 Reasons Sellers Are Rejecting Your Offers

Hey, guys, JP Moses here…

In a recent coaching call with our Insiders, we were asked a really good question about how to negotiate with sellers, and I’d like to share the helpful answer that Patrick and I gave with you guys. Frustrated (understandably) from getting his offers repeatedly rejected, Maurice, from Copper City, Florida, asked:

“I’ve been trying to get investing off the ground for the last 3 years, but can’t seem to get anything happening. I’ve been learning a lot from you guys when it comes to making offers, but I can’t seem to land anything. I guess my most burning question right now is how do I make offers that will be accepted? People always reject my offers!”

This is such a great question, Maurice, because a lot of new investors struggle with this. Common mistakes that get made actually have nothing to do with the amount of money you’re offering – so it certainly can be a bit tricky.

Nothing to do with money? Sounds crazy, right? Well, let me break down 5 potential problems that may be the reason(s) sellers reject offers, so you can see what I’m talkin’ about…

Potential Problem #1: Rapport

First off, maybe you’re not building enough rapport when you first meet with the seller. And, this is definitely something that you need to master – it’s uber important. You need to make an emotional connection with the seller so you are “likeable” and they feel like they can trust you. Some sellers will make a deal with you based on this reason alone.

If making that connection doesn’t come naturally to you, you are going to have to intentionally make that emotional connection based on their interests… perhaps something that’s obvious through their environment, hobbies, family or pets.

Find something to talk about – before all the real estate talk – so they will feel at ease.

Potential Problem #2: Confidence

Maybe you’re coming off like you’re scared and unsure of yourself when you make your offer…

If you seem unconfident, then the seller is not going to believe you. They’re not going to buy into you if you clearly don’t buy into yourself – even body language matters.

Look, it’s normal to be nervous, but try not to advertise it. Subconsciously, if the seller gets the impression that you have no confidence in yourself, then they will lose confidence in your ability to sell their house.

For tips and strategies on building confidence, check out this awesome training call, Building Credibility Regardless of Experience.

businessPotential Problem #3: You’re All Business

On the other side, maybe you’re coming off all business. If you’re too short, abrupt or just get right down to the point too quickly, you might seem uncaring.

Actually, that’s how my acquisitions manager/partner can come off. I’ve had to coach him a bit because he’s all about business: “Here’s my number. Here’s what I can pay. End of story.” And I’ve had to teach him how to make a connection with people.

If you feel like you end up here – at the business end (no pun intended), go back to building rapport (Potential Problem #1). Find that common interest you both can smile over.

Potential Problem # 4: You’re a Know-It-All

Maybe you’re coming off like you are a cocky know-it-all. A lot of times, investors (especially newer investors) feel like they have to showcase their knowledge and expertise because otherwise, sellers won’t buy into them. But the reality of that is, they may just be insecure and feeling like they have to prove themselves, which can come off as confusing to the seller.

I typically recommend that you not use any real estate lingo when you talk to your sellers. When you explain the process, be unassuming and straightforward and put everything in simple, plain English… as if you’re talking to a 6th grader.

Another thing you might want to consider is making two or three offers on every deal. What I mean is, you could make a terms offer. It has a higher price but better terms. For example, you could offer an owner-financing situation, or you could make a cash offer as well, at the same time, that’s a much lower price. (That’s a whole different strategy, and we’re not gonna go down that rabbit hole this time, but it’s something to look into and consider.)

Potential Problem # 5: Trying to “Sell” Them on Your Offer

A super-smart and successful investor pal of mine, Tom Wade from England, is really good at negotiating with the sellers and it’s because of the way he makes his offers – it’s just brilliant, so try this alternative approach…

By adjusting how he talks with sellers, he doesn’t sound as though he’s desperately trying to sell them on his offer, because let’s face it, nobody likes feeling sold to.

So, first, here’s what NOT to say:

“Okay, I think I can offer you $30,000 cash for your house, then close in two weeks and I’ll pay all the closing costs. What do you think?”

Yuck, right?!

ideaSo, try this instead:

“Hey, I’m just thinking through this here. Do you mind if I just float an idea by you that has worked for someone else recently who was in a real similar scenario as you. It’s okay to say no, but it might be helpful.”

And, what do the sellers who are approached that way say?

Yeah, sure. Of course!”

So how did we make that work with the seller in that one statement?

  1. First of all, you got them to buy into you and actually asking you to make them an offer. (More on that in a second.)
  2. And, you’re just floating an idea by them – they see no risk.
  3. Also, when you say it recently worked for someone else who’s in a similar scenario – all of a sudden – without even actually saying it, you’ve made it clear that you have social proof… that you’re familiar with people and scenarios like theirs – but you achieved it in a very non-threatening way.

Next, they’ll want to know more and actually ask you to share your (non-threatening) idea. So you say:

“Well, what if we did XX and what if I offered you XX? And, just based on what I see in the area, I think XX is the kind of the scenario that I see. Could something like that ever work for you or probably not?”

And BAM – there it is! That is so brilliant because you’re still just floating this offer out there in an indirect way.

If you think about the motivated seller, they have pain and when you make them an offer in an ideal situation, your offer is meant to ease their pain. Whatever their pain is, you’re helping solve their problem.

So, rather than just trying to sell them on your offer – you reveal in a very non-threatening way how you’ve helped solve the same pain for other people, so they can clearly see how you can help them too.

And that, friends, is a fantastic way to talk to sellers.

Still need more? No worries, we’ve got you covered. Check out this awesome training call with Brian Gibbons where he shared his ninja negotiating tactics.

jpP.S. – As I mentioned before, we have a monthly coaching call where we give our Insiders direct access to ask me and Patrick any question about anything they might be struggling with right now or whatever their biggest burning issues are… if you want in on that, take a test drive here.

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3 Responses to “5 Reasons Sellers Are Rejecting Your Offers”

  1. Patricia Charles Reply

    so far so good am trying to help myself.

    • Patrick Riddle Reply

      Sounds good Patricia. Let us know if we can help with anything.

      – Patrick

  2. Fredrick Austin Reply

    Good tips!

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