This is the moment you have been waiting for. You have been preparing for this very moment. The moment when they are either going to say yes and sign the contract… or Say no. It’s really that simple. If they aren’t signing, it’s no.
That’s a hard realization. If they aren’t signing your contract, they are essentially saying no. For whatever reason. Legitimate or not; if they aren’t signing the contract at the end of the day, it’s a no.
Unfortunately, we rarely get paid on a “no.” So it is important to make sure that you aren’t in that situation very often! Therefore, learning how to close properly, to ensure you have the best opportunity to get a signed contract is of utmost importance.
Back to the Future…
Let’s briefly review where we have been thus far. If you have followed these steps so far with this prospect, then you are well on your way to winning the war!
Step 1. Lead Generate- (Either by calling FSBO, Expireds, FRBO, and your Centers of Influence by using our scripts.) By any means necessary, you are finding leads through active or passive methods.
Step 2. Lead Followup- (Remember that there are two types, before, and AFTER). As you know, you get nearly 70% of your business from effective lead followup. Through followup, you will make sure that you will not leave any “money on the table!” Call them frequently, since you know they aren’t looking for your number to call you!
Step 3. Pre-Qualify Leads- (Prequalify 100% of your appointments that are “hard” appointments, where you are going out for the express purpose of making a presentation) In order to know their objections in advance, pricing, as well as motivation, be sure to ask them the pre-qualification questions! Most importantly, “what happens if it doesn’t sell?”
Step 4. Present POWERFULLY! – (If you are a longtime follower of The Red Pill Sales System, you already know the power of the “Pawnshop Presentation”!) Remember, you have just a few minutes to make a great presentation! Use a scripted plan to ensure you accurately convey pricing, as well as what you are planning to do. If an agent, disclosure is key, and you must do this correctly!
Now, it is time to close!
Before The Big Finale…
“Does everything make sense?”
A trial close. Something as simple as that can tell you if your prospect is ready to sign on the dotted line. The purpose of a trial close is to simply see if they have any questions.
Typically, when you ask a question like “does everything make sense?” or “are you with me so far?” then that allows the Homeowner or Buyer to offer any questions.
Be particularly alert to any nonverbal cues from your customer. This is where the “wiggle factor” will come in. Don’t worry. It is perfectly normal and acceptable for your customer to have a nervous reaction. This is a big decision.
Now The Big Finale!
“I’m ready, are you? Let’s go! Sign here!”
It doesn’t have to be anything fancy or spectacular. Remember! Unless you are a Realtor® trying to get a listing, you are nothing more than a Buyer of a home! Buyers need contracts signed to get escrow opened!
Simply assure them that this is the “right decision” if you notice that they are looking for confirmation that this is in fact the right path to take. Sometimes, that is all a person is really looking for.
However, be prepared for other questions that may come up in the form of objections. If they do come, simply follow the objection handling track that you learned in our previous post.
Many times, we make a lot more out of the closing than it needs to be. Seasoned Investors and Investing Realtors® all agree that it’s not hard once you understand that you are simply trying to buy something at a particular price or terms.
We are the ones who attach meaning to it. However, we don’t always attach the right meaning. For example, the next time you think that they will never take your price or terms, (if they are a truly motivated seller), consider the consequences they face if they don’t.
When you consider the completeness of The Red Pill Sales System, asking the questions, learning about your customer, and finding a solution that would work for everyone, then you can now close in power and in truth.
Speak Softly, Carry a Big Clip…
To quote Jay-Z, (Or Teddy Roosevelt with a Stick) you don’t need to carry a gun (or a stick), but you do need to have some “Bullets” in your arsenal if you are trying to demonstrate why a motivated Seller needs to Sell their home at a discount.
I mean, it’s pretty easy for me to say “Use a trial close, and then close by saying “I’m Ready, How About YOU!” from my side of the computer right? I mean it’s a lot more cerebral right here, but at the moment of impact, it becomes a bit more… sticky. Would’t you agree?
Would it help you if I gave you some dialogue to help you when you are in those “moments of truth” with a Motivated Seller? Those moments when you are talking to them and trying to demonstrate why they should sell? Particularly to YOU at a discount?
I want you to re-read that previous paragraph. Would it help you?
If it would, then I want you do me a favor. You know that on every podcast, we always begin by saying that it is my way of “Paying it forward…” If you feel that this post was helpful, and the dialogue that is helpful, then please share it with a friend you feel could use it. Pay it forward to them so they can learn and expand their mind as well!
Bullets… Lots of Bullets.
So you need some confidence as to why they should sell to you and not “make more with a listing agent, or selling by owner?” That’s a legitimate question.
I’m not going to hit you with a bunch of statistics, (although I could, 85% of FSBO’s either list or change their plans.) I think it’s important to focus on the motivation issue.
If a Seller is motivated to Sell their home, and keeping it, or renting it out isn’t a viable or a very desirable option, then you have a lot of the ingredients you need to make a good case for a discount.
Time- By accepting your offer, you are able to close ON the day they want. Many times, a timely sale is worth a discounted price to a Seller.
“As-Is, Where-Is” – By accepting your offer, they can literally stop painting, stop cleaning, stop everything! For some customers, it is literally a lifesaver to not have to worry about cleaning out, or moving items.
Closing Costs Paid- When they put their home on the market with a Realtor® it is not uncommon for a homeowner to pay for the Buyer’s closing costs. (Up to 3.5% of the sales price in some cases). As a cash investor, you offer to pay all their closing costs as well as yours. That provides a tremendous benefit of knowing exactly what they are dealing with in terms of net.
Guaranteed Sale- As nearly 50% of the homes that go on the MLS do not sell within the first 30 days, for a motivated Seller, a listing with a traditional listing agent, will not result in a timely sale. Dealing with an Investing Realtor® in your area can help you through a guaranteed sale program.
Speed- If a Seller is facing imminent foreclosure, or sale, or other problem where they need a quick sale, this is the prime area of the investor.
Closing. The Curtain Comes Down.
All that is required at this point is simply closing. Asking for their signature. It is a natural part of the sales process. Without it, you cannot move forward. Without it, they cannot get what they want. They won’t ask you to close them, so you must have the courage to ask for what you want.
In this case, as a buyer, you are simply offering a different option. Ultimately, it is up to the Seller to decide if they will take it or not. I hope that these thoughts have helped you to take that step!
I would love to hear some of the craziest stories you have about closing!