What Are the Six Parts of a Presentation to a Seller in Real Estate Investing?
By [http://ezinearticles.com/?expert=Dave_Dinkel]Dave Dinkel
Making a presentation to a homeowner can be a scary situation. You want to make the sale and to do that you have to convince the seller that the price you are offering is justified. Your offering price will usually be well below what he is expecting or you will be offering too much money.
Let's start at the beginning and for this article let's assume you have advertising in place that has prospective sellers calling you. Following are the steps that you will have to go through to make the sale:
Pre-Screening a Lead - This is where many new investors get stuck as they want to believe that every caller can somehow be made into a deal. The issue here is that if the seller isn't motivated, the investor will not get a good deal or will pay way too much money to purchase the property. The key is to ask a series of pre-scripted questions, the most important being, "Why are you selling?"
Meeting and Introducing Yourself - Don't spend a lot of time on this, just the facts and don't become a braggart about how many homes you have bought and sold. Focus more on how you can help the seller accomplish his goals or get him out of his problems.
Familiarizing Yourself with the Prospect - Spend more time getting to know the seller than talking about yourself. Ask questions so you can learn what the seller wants to accomplish and start working on solutions for your presentation that is coming.
Making a Presentation to the Seller - Stick to the facts of why you are making this offer (justification) and the benefits to the seller which often has to do with the speed of the transaction. Credibility and rapport are developed in this stage if you aren't pushy in making your presentation. Your presentation should be logical regarding the repair estimates, the length of time on the market, and other factors that will limit the seller from doing it himself or hiring a listing agent.
Answering Objections - This is where the sale is made! If you aren't getting objections that's OK if the seller says "yes". But if the seller wants to think it over, that is the worst of objections. Usually saying to the seller that you hear this and when you do, you didn't do your job of explaining yourself properly. Start you presentation all over again and go slower this time and solicit questions from the seller.
Closing the Sale - You have to ask for the order. When the seller says OK, stop making your presentation and write up a contract. Most salesmen talk themselves out of sales thinking they want the seller to know more about how the process works or how good a job he did. Ask for the order and shut up - the first to speak loses. A simple closing such as - We all agree so I'll write up the agreement - works very well. Use the word agreement instead of contract as it is a softer word to use.
An investor can greatly increase his closing ratio by understanding the basics of making a presentation to a seller and following the above simple steps. If the seller says "absolutely not", take it as the first "No" of more to come. If the seller says yes to your first offer, you have paid too much and could have gotten it for a lower price. The average sale takes seven "No's" to get closed. Also, you should always follow up no matter how aggravated the seller was when you left - the real money in real estate investing is in the follow-up!
Dave Dinkel has over 35 years experience in real estate investing which has given him a unique perspective into the real estate market. http://www.DaveDinkel.com is the place to interact with Dave Dinkel. You can read some of the latest informative Real Estate articles he has written. Here you can discover and educate yourself on topics ranging from foreclosure, For Sale By Owner(FSBO) Sales, Credit and much more.
Article Source: [http://EzineArticles.com/?What-Are-the-Six-Parts-of-a-Presentation-to-a-Seller-in-Real-Estate-Investing?&id=6697679] What Are the Six Parts of a Presentation to a Seller in Real Estate Investing?