Knowing the appropriate time to make an offer isn’t something that most folks think about, however it is something that needs not to be overlooked.
Putting out an offer too soon can often lead to instant rejection.
Putting out an offer too late may cause the seller to think you are a tire kicker.
Sellers often want us to make an offer as soon as possible, why is this?
The urgency to receive your offer usually is because of one or two reasons, they are nervous about the selling process and want to get it over with as soon as possible OR because they suspect you might just be wasting their time.
Have you ever been concerned about saying the wrong thing to the seller and upsetting or offending them?
Does the thought of not knowing what to say to a seller make you a bit nervous?
Everyone says to build rapport with the sellers, heck, I teach that too, but I realize it’s a huge challenge to build rapport with a stranger these days.
Social Media, The Pandemic, and just plain everyday society make it more challenging than ever for many people to build relationships these days.
In recent years humans have grown to be far more skeptical than ever of each other.
Some gravitate to communicating via text messaging so they can avoid being face to face or having to speak spontaneously.
Others use social media as a means to communicate.
It is helpful to understand that being shy doesn’t begin and end with buyers, it’s a real issue amongst sellers too.
Fear of confrontation and shyness is a huge part of why many homeowners hire Realtors to sell their homes for them. For many, it’s worth paying tens of thousands of dollars to avoid a potentially uncomfortable experience.
So how do we overcome these issues?
Sales skill is not inside of each and every human, it’s a rare breed that has the skill and enjoys the process. Some people jump out of airplanes for a thrill, others? (people like me), we SELL!
If you are not a Rockstar salesperson and feel you would not enjoy learning how to become that Rockstar, join forces with someone who IS a great salesperson.
A great salesperson knows exactly when it is time to make the offer and close the deal.
Why waste time learning a skill that you likely will never use and will ultimately make you feel uncomfortable in attempting?
By bringing on a salesperson or “acquisition manager” you will garner far better lead conversion results than you could ever expect to achieve on your own.
I know you might be thinking but wait! I can’t afford to pay a salesman right now. I have good news for you, a Rockstar salesperson does not expect to get paid until they close a deal. This means you can compensate them for the deal itself.
Compensation can come in the form of a cash payment at closing, it can even be financed into the deal sometimes! Wait, what?
Rabbit Hole Warning!
Financed into the deal? Yes, you can pay out to vendors in a deal at the closing table by simply adding the amount of the payout to the sales price and then having the payout listed as a disbursement at closing. As long as the property appraises for the revised sales price if using a bank loan then everything should work fine. It wouldn’t hurt to keep your loan officer/processor in the loop as to your intent so there are no “gotcha’s” to sneak up in the final hours before closing.
You can bring your salesperson in on the deal and pay them a portion of the net monthly cash flow. You could pay them a lump sum amount of future appreciation in a specified time frame. I have paid vendors using a note and mortgage recorded against the property for collateral and then made monthly or annual payments to them.
Want to dive deeper into this topic? Then dig in by listening to this week’s episode.