In this article, we’re going to discuss something VERY important for you to know when it comes to making offers. Once you grasp the EASY strategy here, you’ll be able to make offers just about anytime, anywhere…without facing or feeling rejection or any negative feelings most other people often associate with this part of the business. In fact, I’m going to do like I always do – make this simple, easy, and FUN to use. Best of all, you’ll be able to put this to use right away, starting TODAY if you like!
Ready? Let’s go…
Are You Scared to Make Offers?
Let’s face it – When we’re asked how many offers have we made lately, we feel ashamed, because many people just DON’T make offers. And that’s why they often struggle or don’t succeed at first. And as you should know by now, “If you ain’t makin’ offers, you ain’t makin’ money!” That’s what one of my early mentors taught me.
But why be scared? It’s actually really easy… once you really know how to do it the right way.
The OLD Way of Making Offers:
Before we get to the right way that we make offers now, let’s take a quick trip down Memory Lane…
Making offers used to be kinda hard. Especially for ugly houses. Many investors would go to the house themselves to personally inspect it. They’d take their tape measure, note pads, materials estimation lists, etc. Then they’d go get 3 estimates for repairs from different contractors (often a good idea – but not in the early stages of making an offer!).
Then they’d crunch their numbers, double check the formula, make sure all the “i”s were dotted & “t”s were crossed, and work out an exact, specific number to offer.
By the time they were finally ready to think about making an offer, another investor had already come along and scooped up the deal because that first investor took too long! Classic definition of ‘you snooze, you lose,’ right?
Plus, I think we can agree that this is an awful lot of work to do just to make an offer, right?
Surely there has to be a better way! (Don’t call me Shirley)
The New/Right Way to Make Offers
Thanks to a some relatively new understanding and breakthroughs in sales & psychology, we have practically perfected some amazing new ways of making offers to sellers… or buyers… or private lenders. Or anyone, actually! This “New Way” of making offers is a LOT easier & more fun. Plus – let me remind you of my original promise – it’s a lot more fun, too!
The way I like to think of it is if you divided this “New” way into TWO parts.
And the FIRST part sets up the SECOND part…
1. The “Soft” Offer
A SOFT Offer introduces an idea or Concept to the prospect to see if they like it.
It’s a simple way to prepare them for the next type of offer (below).
As I wrote in the article, “Baby Steps to Success,” we don’t always want to just jump right in to making an offer with many sellers or prospects. It really depends on a few things, such as how much rapport you have with them, what stage they are in the sales process, and your own individual skill, experience, and confidence levels.
Just like going on a date, it’s often better to find out what they want, then give them a TASTE of what you’re offering, gauge their understanding and interest levels, and proceed accordingly.
For example, if you’re talking with a seller, and you find out that they’re selling their beautiful $1.2 Million dollar house because they want to downsize & move to Costa Rica to retire, you wouldn’t just jump in and say, “I’ll pay you $400,000, cash, close in 21 days. Take it or leave it!”
That would be like going on a first date & telling them that you want to get married & have 3 kids…and you’d like to start tonight!“
No, rather than trying to shove your offer down their throat, you’d be much better off by first taking a couple of minutes to find out what’s important to them, and what they want out of the situation. We like to call this finding out their “needs & greeds.”
After that, we look to find out what they’d be open to doing by presenting them with a CONCEPT of what we can do for them, along with a couple of benefits that fit their needs.
Here’s an example. Let’s use that same scenario of the $1.2 M house where they want to retire in Costa Rica (nice!)…
Suppose you said something like this, “Since you’re moving to another country, it sounds like you’ll probably want to have some cash flow coming in so you don’t have to worry about your living expenses there, right? What if there was a way that you could get some great monthly income from this house for a while, and then get a big, fat check some time after that? Is that something that might work for you?”
Here’s another, more common way of basically saying the same thing, but in a way you’ll probably use yourself for a long time. This is a great way to introduce the IDEA/CONCEPT of a seller taking TERMS for a while:
“What if there was a way we could buy your house at a price that works for both of us, close whenever it’s convenient for you, and make this a really easy transaction so you can move on with your life & not have to worry about this house any more. Would that work for you?”
When they say yes, you continue by saying, “Well, we can definitely do that! The only thing we would need to know is if you could take payments on your house for a little while until we’re able to get you fully cashed out. Is that something we could discuss?”
Boom! Do you see how that introduces the foundation CONCEPTS of the main things we can do for them on a terms deal?
This is a simple example of making a SOFT OFFER. Remember that a Soft Offer is where we make an offer by presenting a simple CONCEPT or IDEA of what we can do, then listen to their reaction/answer, and go from there.
How Did They React To Your “Soft” Offer?
After you present your simple concept (another ‘baby step’ in the right direction), you’ll need to LISTEN to how they react and go from there. If they do NOT like that idea, no problem! Just present them with another idea or concept and do the same thing. If you run out of ideas and they don’t like anything, they’re probably not motivated and this most likely isn’t a good fit for them at this time… Which is fine! In fact, MOST sellers you talk to will probably fit in this category.
But here’s the GOOD news! You’ll find out EARLY. You won’t be wasting your time. You won’t be begging, or trying to ‘convince’ anyone of anything! You’re simply presenting an idea and seeing if it will work for them or not.
Another way of putting it: You’re giving them a ‘taste’ of your cooking and seeing if they like it. If they don’t, offer them something else until you find something they like or it’s determined that they just don’t like your cooking.
NOW, if they DO like what you have to say, then you’ll continue to work your way towards…
2. The “Hard” Offer:
A “Hard” offer is one where numbers and timelines are named. This is where the rubber meets the road. This part can be frustrating for some – until they master the art of doing it the right way.
For the sake of comparison, let’s go back to the ‘Old’ way of doing it for a moment. This is where YOU have to do all the heavy lifting of crunching numbers and present them to the seller for their consideration and approval. Then hope that they either accept or counter to continue the game. We’ve already been through the pain of that, and how this is probably the wrong approach to take for the right prospect.
Of course, if this prospect is NOT ready to do business, there’s nothing wrong with throwing out 2-3 offer scenarios for them to consider, then follow up with them later.
Now let’s look at the NEW way of making an offer to the right prospect. Once we’ve introduced the SOFT offer (concept of terms, for example), we now move to working on negotiating a HARD offer, where we start to work out the numbers of buying their house.
What are the ‘numbers’ we use? It’s simple. As I wrote in my other article, “The 5 Points of Negotiating a Terms Deal,” we’re going to look at:
How We Negotiate a Killer Deal
Now that we have the WHAT out of the way, let’s look at HOW we do it…
The simple idea is that we want the SELLER (Prospect) to make US the offer! How? By ASKING! We simply ASK them what they’d accept, and we present it in a way that works best and easiest for us. I’ve found that the best way of doing that is to present the questions in a way that gives the prospect the maximum benefit for them for the best price for us.
For example, when it comes to Purchase Price, you could ask this (pay close attention here)…
“So, if we could buy your house as-is, close whenever you like, and make this a really easy transaction for you, what’s the least you could accept for your house?”
Do you see how that works? We give them 2-3 benefits, then ask the question so that we get THEM to name the lowest price!
Just make sure the next question you ask them after they answer you is, “Is that the best you can do?” 🙂
The Easiest Way to Buy Houses With NOTHING Down
Immediately after asking that question, you’ll want to move on to the down payment. Let me share my KILLER way of asking the magic ‘nothing down’ question. This just WORKS – almost every time. Check this out…
“Ok, well, if we’re going to pay you a high price like that, we usually buy for nothing down. Ok?”
The KEY here is to ask that question with a vocal tonality of… you just expect them to agree & say “ok.”
I believe I’ve already covered the rest of the questions in that other “5 Points” article, so if you want more, just check that out.
A Killer Tool To Use For This
Remember that you already have access to my “Closing Call” Script & Form to use whenever you like (as long as you’re logged in to the site, of course). That’s a POWERFUL way of using exactly what we’re talking about here.
PRO TIP: Use that tool for your first 10-20 live seller prospects (and to submit your closing call leads to me for joint evaluation). It shouldn’t take you long to get comfortable with this process. THIS is a killer short-cut you can take now to help you get early success in this business.
Another Killer Tool To Use
So now that we have the NEW way of making a Hard Offer understood, let me share something else with you. This part is optional, but you’ll definitely want to check it out.
As we’ve already discussed, we want to use the techniques discussed in this article here for TRUE prospects – the ones with whom we may be able to do business TODAY. If you’ve read my article “The Art of Prescreening,” you remember that we have THREE types of sellers: Suspects, Prospects,andProjects. If you’re dealing with a true Prospect or Project, you’ll definitely want to use the techniques discussed right here. However, if you’re dealing with a Suspect – someone who’s NOT ready to do business today or any time soon (the ones that want full price, all cash now), you have absolutely nothing to lose by still getting something in front of them and making a few “test” offers. You’d then follow up with these people later on to see if time & circumstance have changed their minds yet. And you’d be surprised how often they do!
For those people, what if there was a way you could get them some powerful information that will help give you ‘another turn at bat’ for when you follow up later? What if you could give them not ONE, but THREE offers for them to consider? Do you think that might help open the doors for you to possibly do business with more people? Your answer should definitely be ‘Yes!’
So, if that sounds good to you & you’d like more information on this killer tool that I’ve personally developed, feel free to check that out by clicking on this link:
Wrapping This Up
Now you know the two types of offers that will help make your real estate business life a LOT easier:
Soft Offers to set up Hard Offers. Step One sets up Step Two. That’s why I used the picture of the footsteps for this article. Remember to use the idea of introducing a CONCEPT to your prospect, then see how they react to that, and act accordingly. If they don’t like it, move on. If they do like it, continue in that direction.
And if they DO like it, then you do the best you can to transition from the Soft Offer to the Hard Offer, where you negotiate the numbers of the deal.
Finally, we use the idea of ASKING the prospect to name the numbers so that THEY make US the offer. This makes OUR job a LOT easier – and a LOT more FUN! (Promise made – promise kept)
Hey, I’m giving you the main ingredient of my ‘secret sauce’ recipe here, so please give it the consideration it deserves. 🙂
If you’ve read all the way to here, you should have ideas bouncing around in your head right now! That’s a beautiful thing.
NEW Feature: I’m opening up these articles to let YOU share your thoughts & ideas right here! Look below – there should be a place for you to share your feedback on this article. What do you think? What was the biggest idea or takeaway you got from reading this article? HOW will you put what you’ve learned here into place? How many more offers do you think this will help YOU make? Share below! Thanks for reading, and I truly look forward to hearing from you on how these techniques work for you because of all the easy offers you’ll now be able to make!
Until Next Time, Here’s To YOUR Success!
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