I have a VERY special surprise for you today!
What you’re about to receive here will give you an extremely powerful negotiating tool you’ll want to add to your arsenal. Immediately.
Keep reading to see WHY and HOW to use this tool properly…
Let me ask you a question: Have you ever talked to a seller who’s asking TOO MUCH for their property?
(Gee, that never happens, right?)
Or have you talked with a seller who OWES (for example) $200,000 on their underlying loan, and the property is worth (for example) $250,000, so they THINK that they have $50,000 in equity, so that’s what they think they’re going to get at the closing table? (NOT!)
HOW do we deal with these people? How do we ‘educate’ them to the reality of a realistic real estate transaction.
First, the WRONG way to deal with them is to take an antagonistic approach and just directly tell them something like “No! You’re wrong! Your property isn’t worth that much!” or “Haha! You think you’re going to get that much at closing? Are you really that stupid??”
While it may be ok to THINK those thoughts in your head, you definitely don’t want to say that stuff out loud, or I can practically guarantee you’ll get shown to the door before you can blink.
So what IS the RIGHT way to handle this situation, without
pissing them off? making them angry?
How can we show them the truth about what they’ll realistically walk away from the closing table?
Well, I’ve got you covered! Introducing…
The ‘Cost To Sell’ Worksheet!
WHAT IT IS: This is a TOOL that you’ll use to help a seller recognize – with his/her own eyes – the real numbers that factor into a typical real estate transaction. Used properly, this will help you help the seller come to the shocking reality of how much they can expect to walk away from at closing, AFTER all the typical fees, costs, etc. are factored into the equation.
HOW TO USE: It’s quite simple. The first thing you’ll want to do is download the files I’m providing for you below.
I’ve taken great pain to make them both visually appealing AND highly functional for you. I’ve also included several versions of this form, which are explained below.
Next, you’ll want to open each one up & examine them so that you can get a feel for how they should be used properly.
After that, you’ll want to edit the forms to match YOUR identity – your name, company name, website, and phone number, then save the document or spreadsheet.
Then you’ll print out a few of these and put them in to your ‘Buying’ packs. These are the packs that you should always have available to take with you when you go on an appointment to meet with a seller. The other docs you should have in there are: 2 copies of each of the following: 1. Purchase & Sales Agreement; 2. Lease Purchase Agreement (the one WITHOUT the Table Of Contents); 3. Authorization to Release Information.
When you’re in front of a seller, and the opportunity presents itself, you’ll whip out your handy Cost to Sell Worksheet, and hand it to the seller, saying something like “Mr. Seller, can you help me out with something? Have you ever sold a house before? So I’m sure you’re aware of several factors that influence how much you’ll actually walk away from at closing when you sell a house. Can you help me go through these, so that you can know what to expect from your house at the closing table? Great, thank you…”
“So, as you’ll see here, this is a simple Cost To Sell Worksheet, which will help us figure out what the costs are for a typical, traditional sale of a house. So the first thing we need to start out with is what your asking price for the house is. How much do you think this house is worth again? Ok… Could you please write that down in the right blank at the top of the page there? Thank you….”
“Next, do you remember when you bought this house? Did you just automatically offer the full asking price? Probably not, right? Like most people, you probably asked for a discount, didn’t you? So do you think it’s reasonable that any potential buyer would ask you for a discount, too? We have a national average of about 3%. Do you think that’s a fair number to use? Ok, please write that down there. Do you need a calculator to figure that amount?”
…and keep working through the sheet, all the way down. The KEY here is to get the seller to write down the numbers himself.
The last significant number here is going to be the loan payoff amount.
So have them figure out all the numbers, then subtract the amount that is owed on the house, and BAM!!
That bottom line number will be a slap across the face on a cold day!
Sometimes, the number that is figured is a NEGATIVE number! This means that the seller would have to come out of pocket and PAY in order to sell his house! This is when it gets fun, because you can occasionally get the SELLER to pay YOU to buy his house from him! Think I’m kidding? I’m not. How do I know? Because I’ve personally done this at least 5 times! Would you like the magic words to get this result? Ok, I’ll give them to you. Just show them the shocking negative number and ask them, “So how much would you be willing to pay me to take this property off your hands?”
And then shut up! Let them talk.
Good stuff, right?
Wouldn’t it be awesome if there was an easier, alternative way of doing this? What if you could use an electronic version of this form… maybe even one that would automatically fill in the appropriate values, calculate percentages, and figure out the numbers as they’re typed in? All you would need to do is whip out your smartphone, tablet, or laptop computer, bring up the spreadsheet, and hand it to the seller for THEM to type in the values as YOU direct them. It doesn’t get any better than this!
But gosh, wouldn’t it be awesome if that was available? (shameless hook there, I know)
Well, you’re in luck, my friend. Because I’ve already created that FOR you!
Yes, it’s below. Go get it now (look for the last 2 docs that have ‘AUTO-COMPLETE Formula’ in the title)…
Download/Access Your ‘Cost to Sell’ Worksheet Below:
This will SHOW you an idea of what it should look like & how to run the numbers.
This is for YOUR learning use only.
Cost to Sell Worksheet, (WORD Version)
This is a simple version you can use. You’ll need to use some math here.
Cost to Sell Worksheet, (PDF Version)
In case you wanted to have this, here it is as a pdf.
You’ll need to alter this to match your information first, though.
This is a nice but simple Spreadsheet you can use.
Ok, I heard you! I know you wanted to have a simple, fillable excel spreadsheet that you can use to automatically calculate the amounts FOR you!
That’s what you’ll use THIS one for. Enjoy. And put it to good use.
By now, you should know how much I love using Google Drive. This is a very convenient Google Sheet I’ve set up for your use. It’s the same as the above Excel version.
WHAT TO DO: Be sure you’re logged into your Google (Gmail) account. Click on the link above. When you get to the next page, click on ‘File–>Make a Copy‘ then save it to your Google Drive. YOU WILL NOT BE ABLE TO EDIT THE SPREADSHEET UNLESS YOU FOLLOW THOSE INSTRUCTIONS! But if you make a copy, you’ll be fine. If you even think of ‘requesting access’ to my spreadsheet via Google Drive, I’ll know that you haven’t read these instructions, and I’ll have to pull your card. 🙂
If you want to get fancy or convenient, you can even put this in front of your prospect when you’re at the house – either on your phone, laptop, or tablet.
So there you have it! I hope you have much success using these forms and sheets in your investing business.
***Do not underestimate the POWER of this tool. I’ve used it many times to validate and justify MASSIVE discounts on equity spreads in deals. I highly recommend that you practice using this a few times before you go out and put it in front of a seller’s face. Plain and simple: This spreadsheet will make you more money with less hassle.
You’re welcome. 🙂
Now go out there and MAKE SOME OFFERS!
P.S. UPDATE: If you’ve read this far, I have a SUPER treat for you!
I recently created a powerful new TOOL you can use to easily get to the bottom line, right on the phone, with a seller. It’s a Cost to Sell Net Sheet Script Form, and you can have access to it for FREE, right HERE. Go check that out now!