Transcription
Pay attention, because this video is going to be the most important video you will ever watch on mastering the skills of closing distress sellers in real estate. After calling more than 10,000 sellers over the past 20 years plus, I've mastered seven techniques for closing sellers. Not only am I going to teach you all seven of these techniques, I'll even show you actual examples with sellers on real calls so you can see how this works in real life. Now, this is a video you don't want to miss. Coming up.
For a limited time, you can get a free copy of Jerry Norton's motivated seller scripts, so you can talk to, email, and text sellers with confidence. Download it now at freeellerscripts.com.
Now, before we get started, it's important to emphasize that in distressed real estate, when working with motivated sellers, the most important thing to closing a deal is convincing a seller that you are the right solution to solve their problem. I can't stress this enough. Sure, price matters, but peace of mind is often more important than equity. Even if subconscious, confidence that you can perform is usually more important than price. And you can't fake this. It won't work. No amount of tactics will compensate for insincere motives. You have to care more about solving a seller's problem than you do about making the sale. And if you ever watch me do live calls with sellers and agents, you can feel that energy come through. Nothing else I teach you on this video will work if you don't have a servant heart and a desire to do what's best for sellers.
One final thought before we get into the seven closing techniques. I believe 100% what sales expert Jeremy Miner once told me. Good sales is about asking the right questions at the right time and with the right tone. So, as we go through these techniques, I want you to pay close attention to not just what I say or when I say it, but how I say it.
Okay, let's dig into the seven closing strategies. Now, to help you remember each of these strategies, I've given them each a name that is more of a persona or a way of being. Each of these seven techniques is a role you'll play in the sale process. The goal is to use one or a combination of these techniques seamlessly throughout the conversation so that it feels natural. In fact, most of the time, it's so subtle you wouldn't even notice it unless I pointed it out to you. With time and practice, you'll learn when to use each one and become a master at implementation.
Now, these seven strategies or personas are: one, the analyst; two, the affirmer; three, the challenger; four, the worrier; five, the expert; six, the comedian; and seven, the idiot.
Let's start with the analyst. The analyst uses logic and reasoning. Typically, this is used when discussing the value of the property, the cost of repairs, and/or the rationale behind your discounted offer price. When using the analyst persona, be prepared to discuss actual comps in the neighborhood and how much it will cost to do renovations. You might even explain your buy formula and how you've arrived at your offer price. A type A personality or an analytical person resonates with the analyst. Using data and information to justify your offer is very convincing, and it builds trust with a more level-headed seller. But beware, the analyst is not effective if the seller is emotional or irrational, which is common with distressed sellers. By the way, if you ever watch my live calls with agents, I use the analyst persona the most because agents are supposed to be more analytical.
Okay, let's cut to a clip on a call with a seller where you can watch me be the analyst.
"Just because let's say I pay that number and then I come in and I spend $30, $40,000 to fix it up, which is on the low side because it everything just costs a lot around here. That's that's on the high side. 22,000 people in town, right? Which means I have a labor problem, which means I got to bring in guys from out of town and it's all just cost a lot now to do things. Nothing's cheap to fix up anymore. So if I spend that money, then now I'm into it for value. If I pay 35 to buy it, you walk with 30, but I pay 35. I spend another 35, I'm right there at the value that homes sell for. I'll spend a lot of time and money and not make not make any money. Yeah. See what I mean? I know what you're saying. Uh, I'm just being real with you. If you talk to other investors like me, Yeah. I think you're going to get offers in the 10 to 15 range."
The second technique or persona is the affirmer. Now, the affirmer is sympathetic, empathetic, and agreeable. The affirmer resonates most with an emotional seller. The affirmer is able to sit in discomfort with a seller. They're a good listener and is just present with the seller. I once spoke with a seller who was the executor of the will on his mom's property, and Mom had recently passed away. And I listened to this seller complain for a half an hour about his useless, pathetic siblings who didn't care about Mom and only wanted Mom's money from the estate. Now, during that 30-minute conversation, I hardly said a word. I just listened. We didn't talk once about the property. Finally, he said to me, "No one gets me like you do. I'm not going to talk to anyone else. You're my buyer." And I ended up getting that deal at a much lower price than other offers he received. The affirmer also helps a seller feel smart and wise. When a seller says, "I'm getting multiple offers," I'll usually respond by saying, "That's really smart. I would do that, too." It builds trust when you provide a seller confirmation that they're making good decisions.
Okay, let's cut to some clips where I play the role of the affirmer.
"Foreclosure fees, and everything. Oh, that's with everything. Okay, good. Well, it sounds like you've done your homework on this. So, if you sold it for 100, you'd pay off the $16,000 owed on the loan, and then you and your brother would split whatever the proceeds are. Yeah, that's the plan. Okay. I love that you're looking at all your options. That's really smart to make a really informed decision. And I'm the oldest and I'm also her executor. So, Okay. So, who cares what they think? Yeah. Well, no. I'm I'm gonna Yeah, a little bit. A little bit. I mean, let's be real. Who cares what they think? No, I'm just kidding. You want to keep the harmony in the family for sure. Yeah. My personal residence, I paid close to a half a bill on it. Uh, they only want to put $1,000 down on the house. Oh, yeah. On a half a million dollar house. Yeah, that's ridiculous."
The third persona is the opposite of the affirmer, and that's the challenger. Now, the challenger takes a parental role and confronts the seller's decisions or beliefs. The challenger pushes back on the seller's unreasonable ideas and gets them to see a more realistic point of view. In the right situation, challenging a seller elevates you into a position of authority, and it can be extremely effective to reset a seller's position. But be careful. The challenger requires really good intuition or it will backfire and be offensive. Now, I will sometimes use the challenger technique if nothing else is working, sort of like a last-ditch effort or a Hail Mary. If I can't get through using any other techniques, I might swing for the fences by getting in their face and being confrontational. Recently, I had a seller tell me that he had a much higher offer. Now, I challenged him and I asked if he had that offer in writing with a non-refundable earnest money, which of course he didn't. So, I boldly told him that that offer was BS and not real. Take a listen.
"I'm guaranteeing you, like if I walked in there, I've got sagging floors on the on the in the house. You know what I mean? The floors did not seem to be sagging last time I was up there. I'll bet you $100 they are. I just know they are. I've just I've done this a long time. It's 1,900 built. Even though it's only 1,350 square feet, like you're spending $100,000 to redo this house because everything has to go and not that many people would even take on a project like that. Yeah. You know, most my investors have like a no pre-1960 rule on buying houses because it's old knob and tube. Who knows what the plumbing's doing? It's probably galvanized cast iron sewer line and it's just a lot. Yeah. Yeah. But I mean, I I can do it, but I I think I would need to be more like 20, 25. Tell you what, I right now I'm not inclined to that, but uh, I'll keep your number and I'll give you a buzz back within two weeks. I guess what happens in two weeks? I have somebody that had uh said that they were interested. They were going to put a contract in on it. They've been dragging their feet. At what price? About 47. Yeah. The reason why is because it's Yeah. Yeah, I'm just telling you. Here's how you know someone's a real buyer. They put it they sent a real buyer. I Okay, I know the person somewhat. I just don't believe it because, you know, until somebody puts it in writing and they put earnest money down, it's not real. Right. Right. Yeah. Like I have people tell me all the time, 'Well, I got another offer.' Really? In writing with earnest money? No, you didn't. Then I'm just shooting straight with you. I think if you paid 35 for it in '21, the market's only gotten worse since '21. And that property has only gotten in worse condition sitting idle for four years without maintenance. Right. Right. Yeah. So, there's no way it's worth the same as when you bought it four years ago. Well, market's slowing down and it's it's projected to continue slowing down. Yeah. So, whatever I think it'll sell for today, it'll probably sell for less when I'm done with it, when any investor is done with it in a year from now. Mhm. That's why honestly, the a number at 35 and '21 is 20 and 20, 25. You have to readjust your thought process on things."
The fourth persona is the worrier. Now, the worrier is very concerned for the seller. This persona is utilized to help a seller see the negative consequences of their actions or inactions. You might say, "What are you going to do if you don't sell your house before the foreclosure auction next month?" Now, this technique will sometimes snap an indecisive seller into action. I once told a seller, "The value in your property went down $17,000 from last year, and values are predicted to drop even more in the next 6 months. If you wait, you may not sell for as much as you can today." So, take a listen to how I was the worrier.
"Yeah. I mean, right now, like the online, it has your house valued at $46,000 as the current value of the house. Well, okay. By the way, that's down $17,000 since May. We're in a slower market now. Yeah. Yeah. And it's projected to be continue going down. So, you want to think about that. The longer you wait, the less you get right now anyway, right? That could turn around, but that's the trend right now. Okay."
The fifth persona is the expert. Now, this persona is easy for me because I am an expert. The expert gives counsel or tips or advice to the seller. This is where you become a coach. Now, you may say, "If I were you, here's what I would do." Or you might say, "Whether you go with me or someone else, make sure you fill in the blank with some profound good advice." When a seller feels like you're giving them good advice, they trust you more. Now, watch this clip where I tell the seller, "I'm not the right solution, and here's what he should do instead."
"If you do lock this up with somebody, here's here's my advice. Make sure they can stand behind it with earnest money. Right. Right. Yes. You can lock up anything with no earnest money and if it doesn't work out, you walk away. Right. Right. And then you're strung along. I hate that. So like with yours, I would say give me seven days just because it is a pretty big project. Give me seven days. Once the seven days are up, I will go hard with $5,000 in earnest money on a $20,000 purchase. Non-refundable, sitting in title. If I don't close, you get my five grand. And that's how it should go. Like honestly, anybody else who can't do that is not real. That's true. So, like I would call up your $47,000 buyer that you have and say, 'Let's get it done. Let's put it in writing. Give me some earnest money and let's close.'"
The sixth persona is the comedian. Now, the comedian is fun and likable. Talking to you is scary. Sellers have a wall up from the minute you say hello. Humor can lower the guard because it humanizes you and people are drawn to people who are funny. The comedian also finds common ground, things that you both have in common and similarities as a way to be more relatable. Always look for opportunities to make the call less serious. So, watch a few clips where you'll see me trying to be funny and connecting with sellers over humor.
"Wait a minute. Wait a minute. Wait a minute. Did you just say the buyer was unable to purchase because they blew themselves up in a landmine? Yes. I've heard it all, Lawrence. I've never heard that one. That's wild. I'm a Vietnam Okay, so it's normal for you. I can beat you, though. I once did a deal where there was a severed head. No lie. A human head and hands in the freezer in the basement. So, anything goes. I guess people everything. Liam, put the door. Does you hate it when they leave the door open? He He keeps opening it. I forgot to put the child lock on. I shoot 12 gauges out my back door. I do that, too. What do you shoot out your back door? Just practice. Oh, okay. You're not shooting like the neighbor's cat that's on your property or anything? I ain't no neighborhood cats or anything. Okay, that's great. What are you going to do when you get that big check? Move the hell out of Illinois. You don't like Illinois, huh? No. Tell me you're not going to Arizona. It's hot as balls there. Tennessee. Oh, Tennessee. I love Tennessee. No, I I appreciate it. You've been very um informative today. Good. Okay. Thank I wish you the best and I hope you have fun in Arizona and and uh, you know, did anybody tell you it's it's like Satan's furnace there in the summer. So that's why I had the play. I hate it there. It's like um, I'm just there for the cancer center. That's the only reason I'm going. Okay. Been there before. All right. You know what you're getting into then. Six months of the year it's amazing. The other six months of the year not so much. I'm a beach girl. Definitely a water girl. But uh, but I appreciate that. Hey, thank you so much. Wish you the best, Lynn. I'll be in touch. Thank you. Bye. All right. Byebye."
Now, the seventh and last persona is the idiot. Now, this is the opposite of the expert. Instead, you're confused, which honestly, a lot of time when I talk to sellers, I'm lost as to what the hell they're talking about. Showing you genuinely don't understand or just being curious is a pattern disruptor. It gives the seller a chance to explain themselves better and frankly gives you a chance to try and understand their perspective. For some reason, people think they have to have all of the answers. When you have the confidence to say, "I don't know, but I'll find out," you become more authentic and trustworthy. When a seller tells you something, rephrase the question to make sure you comprehend. Now, I'll often say, "So, is what you're saying then," and repeat back what I heard. Be careful not to be condescending. To play the idiot persona effectively, assume you're the dummy, not the seller.
Now, take a listen to these clips.
"Where are you getting the $100,000 number? Like why is that a number that works for you? Just help me understand where you're at. It don't need work like it's livable, but it's going to need new carpet. Probably painted. It's been the same wall color for ever since we've had it pretty much. I'm just looking here. It looks like it's got a two-car garage and then another garage. Is that right? Yeah. A two-car detached garage and a one and a half car detached garage. And this is on one acre. 4.45 acres. Oh, it's got four acres. Okay. Yeah. Okay. Well, that's that's great. Now, is this a manufactured home? Yeah, but it's it's foundation as a house. Yeah. Yeah, it's on the foundation, but it is a manufactured home. Yes. Okay. And tell me your square footage. I don't see that here um online. I don't exactly know. I have the paperwork, but it's But it's three bedrooms and two baths, right? Yes. Two full bath and three kidsized bedrooms. To me, it feels like it's two mobile homes put together. Well, it's probably a double, but you're certain it's four acres because here it says it's 1.8. Is there another lot that comes with it or something? 3524 and 3526. Okay. Yeah. Uh, well, do you understand how that works with an agent when you when you do a listing agreement? Okay. You kind of made a commitment with them. Usually it's 6 months where you know you wouldn't be able to sell it on your own anyway. I actually made it for two months. Oh situation. And the two months is not quite up. How much longer is there on the two months? Uh, like two and a half weeks left. So, in just to be clear, in two and a half weeks, your agreement with the agent would end and you could either renew or sell on your own. That's your understanding. That's correct. Or take it off the market. Yeah. Okay. Well, then let's continue this conversation because, you know, maybe there's something here we can do. I just don't want to have a conflict with your agent. I just want to do the right thing, you know, and just make sure I understand. I don't know if I can do this, but let me make sure I'm understanding. You're saying for an offer like that, you would be open to 350. Okay."
So, now that I've explained all seven personas or techniques, I've got three tips for you, as well as a homework assignment.
Tip number one is to watch the pros in action. Seeing a closer in action is inspiring. Lucky for you, I have hours of live calls here on my channel. Now, another pro I recommend watching is R.J. Bates. They call him the king closer for a reason. He's really good. When you watch me or someone like R.J., they do live calls. Look for these seven different personas. See if you can identify which one is being used. Pay attention to positioning and tonality. Remember, it's not just what they say, it's how they say it and when they say it.
Now, your homework assignment is to watch a three-hour video where me and R.J. Bates take turns calling sellers live. Leave a comment with which persona is being used and the time stamp.
Tip number two is to role play. Role play is where you pretend to be the buyer and someone else plays the seller or vice versa, and you practice different situations. Role play is a powerful way to practice in a safe environment. Now, I learned the power of roleplay when I was a proselyting missionary for my church in Argentina almost 30 years ago. Every single morning for two years, before going out and knocking doors, I would roleplay with other missionaries different scenarios and I would practice how and what to say and when. I'm such a big fan of roleplay that I developed a tool where you can role play with AI. You can play either the seller or the buyer. You can tell AI what situation to be in and how easy or difficult to be. This tool comes included with my AskJerry AI coach. Now, to learn more, just go to getaskjerry.com.
Tip number three is going to be a real shocker. You ready? Practice. People ask me all the time, "How are you so good on the phones?" Listen, I've called over 10,000 sellers. Put in the reps and you'll see the results. And for the love of God, please don't tell me it doesn't work after trying like 10 to 12 times. Until you've talked to a thousand sellers, you can't say it doesn't work.
So, next, I want you to watch a live seller call I did on the spot in front of an audience of 3,500 people watching. Now, if you want to see Jerry locked in, watch that video now, and I'll see you on the next.