There are literally dozens of ways to acquire properties through savvy marketing, but that is a topic for another day. The fact is, your marketing got you this far and now it’s time to talk to a potential seller (or buyer) and hopefully strike a deal. By the way, although I mention sellers a lot, these rapport techniques are equally effective with potential buyers.
It’s a given that people like to do business with people they like. “Like” leads to trust and trust is the main ingredient that leads to getting a deal done. It all depends on getting people to both like and trust you and that comes from building rapport . Rapport is defined by the Meriam-Webster dictionary as a “relationship marked by harmony, conformity, accord or affinity”
The Initial Contact. Your initial contact with a seller (or potential buyer) is most likely to be by telephone. Whether they call you or you call them it is harder to build rapport by phone because you are missing some key components that you have with a face to face meeting such body language and eye contact. These can be overcome by following some simple guidelines, below. Remember it’s not so much about being “friends”, it all about building mutual trust and respect.
How to Begin. If they are calling you-get their name first. If they say “Hi, my name is Christopher Smith and ….” I would respond with “Thanks for calling Christopher!
If I am calling them and the name on my list says Christopher, then I would ask “Do you prefer to be called Christopher or Chris?” For older folks I sometimes ask if they prefer to be addressed as Mr. or Mrs. or Ms. I also ask, “Is this a good time to chat?”
Then be sure you obtain all necessary contact info. I usually say something to the effect “Mr. Seller, I see your number on my caller ID. Is this the best number to contact you at? Do you have other contact info, phone, or email?” Once I have the essential information, I always say, “Tell me about your situation” if I am dealing with a potential seller with a problem. You will be surprised how that statement opens them up to chat!
Smile. Even if it is just you in your office- smile! It really does make a difference on the other end of the phone. Be friendly but remain professional. If they are calling you- ask how they heard about you and track that in your marketing. Make sure you get as much information as possible without being pushy. Use common “public” terms for real estate, Stay away from the jargon that is commonly used in our circles. It can confuse the person calling you and lead to distrust.
Use a Script. This is really important! This will make sure you find out all the required information on a property that is essential in making a good decision on whether you can construct an offer that is acceptable to both parties. Use the script as a guide, just make sure as many of the blanks are filled in as possible by the time you hang up. The script we use not only has great information questions but includes some suggested “probing” questions to test seller (or buyer) motivation.
Finally, practice the script with a business partner, spouse or associate to smooth out your phone demeanor.
Listen, Listen and Then Listen Some More. Your potential seller has a problem and they need to sell a property. Hopefully you can provide a solution. Listen carefully to what they have to say, it isn’t always in just their words! Let them vent. If they are mad at the bank, then take their side. Make their problem your problem. Make occasional comments, (a yes, or uhum) now and again to let them know you are there. If they stop, repeat back a thing or two they said. Give them your undivided attention, don’t be reviewing a contract or working on the computer while you are on a conversation.
Not everyone likes to talk. For those folks I may use some of those “probing” questions from my script such as “What other alternatives for selling your property have you considered? Or “What date do you need to close by?” I also ask questions that require an answer requiring further explanation other than “yes” or no”. Relax and don’t rush the conversation with these folks. Once they are done talking about their situation then I say something like: “Wow, that is quite a story! What else can you tell me?” For some folks, that will be like opening the floodgates again, but it may give you additional information that may prove ultimately helpful. Be appropriately emotional but don’t get emotionally involved. My wife (and biz partner) and I deal with a lot of short sales. We hear some very sad stories. It’s ok to sympathize but if we got emotionally involved with every situation we would probably be in strait jackets!
Don’t Negotiate Over the Phone! Unless I am in the final stages of a deal where I have already built rapport with my seller or buyer over a period of time and we have most of the important details ironed out, I NEVER negotiate over the phone. Your whole intent with the initial phone conversation is to:
1. Qualify your caller to make sure that the deal will work for all parties.
2. If caller is qualified- your goal is to make an appointment to meet them in person and see the property.
If you run across a seller that lives out of state and you absolutely need to negotiate over the phone, I find that Skype (or similar) at least helps a bit better than try to negotiate by phone.
Qualify Your Caller. Just because you get a call doesn’t mean it will be a deal. In fact many calls will not result in a deal. Many mentors may tell you to qualify your callers within 5 minutes and then bow out of the call one way or the other. Bill Bronchick and I don’t adhere to that philosophy. I don’t like to waste time but I don’t think you can truly qualify everyone in that short period of time. Sometimes spending just an extra few minutes can yield extra information that can move you ahead in a deal that initially seemed not to work.
If my caller doesn’t qualify- I still try to provide them with a solution that may work for them. An example one of the “hotlines” available is some states for foreclosure or government loans. Because of this I have gotten a couple of deals over the years referred to me by someone I couldn’t help but we had enough rapport by the end of our conversation that they referred me to a friend or relative to help them in their situation.
Find Out What They REALLY Want. The most important thing that most investors miss is what the seller really wants! People get into jams and most are embarrassed about their true circumstance. They don’t always tell us the whole story. It is essential to discover the real reason the seller is calling and ultimately provide a solution as to how we can best solve that problem. In a person to person meeting you can offer them very enticing terms but if they need substantial outlay of cash initially – your offer, no matter how high, likely won’t work for them. You might miss out on a deal that would have worked for both of you. Be patient but persistent- It may take a couple of phone calls and even a face to face meeting before they get to this point with you.
Get an Appointment. Your goal for your phone call is to begin to build rapport, garner essential information in order to see if this is a deal or not, qualify your caller and get an appointment. When you ask for an appointment use forced choice questions such as “I have a time slot available tomorrow at 3 pm or Friday at 9 am. Which of these times work for you?” Otherwise you will find yourself adjusting to the caller’s sometimes bizarre schedules. If they have a busy schedule then I suggest a breakfast or lunch meeting. Make sure you end the conversation with what you hope to accomplish at the meeting and about how long it will take.
My wife or I usually will call a day before the appointment and reconfirm the time. If there is some paperwork or information needed from the seller or buyer, we make sure that information is also going to be available at the time of our appointment. We also make sure that all parties on title and decision makers will be attending the meeting.
Follow Up. Many times you may need a day in order to verify information on a property such as taxes, outstanding liens, foreclosure date, etc. If so, then let the caller know by telling them you need a day to do so but you will call them later today, tomorrow, etc. at a specific time. Then make sure you call back at that time whether it will be a deal or not. Don’t wait too long- there well may be other investors waiting in the wings!
End on a Good Note. If your caller sounds like they qualify, then thank them for their time, assure them that they made a good decision to work with you and then repeat the appointment time.
If they don’t qualify, then thank them for their time and if possible, give them an alternative or source of information or help that may be a better solution for them.
That’s it! Feeling comfortable dealing with sellers or buyers on the phone when it comes to your real estate business takes time and practice. There is no experience like doing it for real and is no time like the present- so jump in. Best of luck and here’s to your success!
