One of the most critical skills in real estate investing is the ability to understand seller motivation. This is particularly true for wholesalers, where knowing why a seller wants to sell can make the difference between closing a deal or losing it to a competitor. As Travis Lauchman, a seasoned investor, explains, “The very first step is to be very clear about what it is that they want. What exactly do you need out of this?” Understanding the seller’s core needs isn’t just about offering the highest bid; it’s about serving their deeper emotional and financial needs.
In many situations, sellers are not just motivated by price. Some people want to maximize the money they receive, but others are looking for speed and convenience, especially if they’re in an emotionally taxing situation. “Some people just want to be done,” says Lauchman, recognizing that many sellers are under stress. As an investor, understanding whether they value ease and speed over price will guide your approach and allow you to offer the right solutions. In some cases, a lower offer with fewer conditions might appeal more than a higher offer with lengthy terms.
Listening to sellers is crucial. Many times, sellers are elderly or have lived in their properties for decades, making the decision to sell a highly emotional one. As Lauchman notes, “A lot of these people are elderly, and it might take some rapport building.” Patience is key when engaging with these sellers. Lauchman suggests treating them as if they were your own family members: “Think about it as if it was your aunt or grandmother. How would you treat them? Give them the time to speak and truly listen to their concerns.”
According to a study by the National Association of Realtors (NAR), over 80% of home sellers rank “trustworthiness” as the most important factor when choosing a real estate agent or investor (National Association of Realtors, 2021). This trust is built through genuine listening and empathy. Sellers need to feel that their situation is understood and that their needs are being met. When real estate investors approach sellers with patience, empathy, and a focus on building a relationship, they build trust that can lead to a deal.
Other Tips for Building Rapport with Sellers:
- Ask open-ended questions: Instead of asking, “Do you want to sell your house?” try, “What made you decide to sell your property?” This opens up a conversation that reveals the seller’s emotional and financial motivations.
- Be transparent and honest: Always communicate clearly about your process. Explain how the sale will work and what the next steps will be, so the seller doesn’t feel uncertain or pressured.
- Respect their timeline: Some sellers need time to make decisions. Give them space to process the information without pushing them for an immediate answer.
- Offer personalized solutions: If the seller is motivated by a fast closing, offer options that cater to that need, such as quick cash sales or flexible closing dates.
In real estate, success often comes down to building relationships based on trust and understanding. By taking the time to ask the right questions and listen attentively to what the seller truly needs, wholesalers and investors can tailor their approach to serve those needs. As Travis Lauchman suggests, remember to treat sellers with the same care and respect you would offer a family member. This empathetic approach will not only help you close deals but will also build a reputation that keeps sellers coming back for more.
Source:
National Association of Realtors, 2021 Profile of Home Buyers and Sellers.