Phone Scripts: Calling Distressed Sellers

Anybody?

Does anyone have any phone scripts? Me and other users are asking. If you don't have some but make regular, outbound calls to prospective sellers, please write down what usual questions you ask and share here.

We make calls daily. We do not use a script. We let the sellers do most of the talking. However we do use KEY opening statements and questions along the way that open up the conversation. We have put several years of practice and working these things out by actually making calls, making mistakes and learning along the way. We really have a GREAT system for calling and door knocking. What we do works far, far better than any guru script. We tried those so we KNOW what works.

Just like my true Private Money lenders and my buyers list, my seller contact techniques are not ever made public. Only the people I mentor have access to that info.

Think about it though. You are dealing with distressed people that are in denial half the time. A little common sense will go along way when talking to these people. A key word is EMPATHY. One more free tip. Present yourself as their LAST option, not their first.

Good Luck!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

I understand the need for empathy, people skills and the like, but even you mention that, "Key opening statements," and I'm sure you have questions that you need answers too. So, what are they? Those, "Key opening statements," are a script.

I adapted this from a script that I would use for regular sellers (not distressed sellers):

1. Why are you selling?

2. When do you plan to move? Do you have to be out by a certain time?

3. How much do you think your house is worth, and how much are you looking to get out of it?

4. Now, as far as price is concerned, what's most important? Do you absolutely have to have top dollar, or would you sell at a discount to get out sooner.

5. What would be a good day and time for me to come out, meet with you and evaluate the property?

I think it's important to keep it short and sweet at first, because the objective is really to get an appointment, and you may have some information already, if you've done your research. Or, if you don't, you can get it before you go out.

I'd drop the 4th one though. As a rule of thumb, try not to be the first one to bring up numbers and just like Micheal sead, let them do most of the talking. Chances are better that once they open up they'll start revealing some "magic buttons".

The best start question that I EVER heard was one that Jen posted once and it really resonated with me.

She said whenever she talks to ANY seller, the first thing she says is: "Tell me about your situation." Then she just listens.

Many of your questions will be answered without SOUNDING scripted and they will be telling you their "hot buttons". The "hot buttons" are the most important!

Karen

Remember to USE the Search box under Dean's chin
http://www.deangraziosi.com/search/node#keys scripts
yea, it's THAT easy!
Mike
see Instructions link below

Here's our script with Matt Larson's negotiating techniques, do it enough, you'll know it by heart.

1. How did you hear about us?
2. Get Sellers Name and Phone Number
3. What's the property address?
4. How many bedrooms and how many bathrooms does it have?
5. Does it have a garage or a basement?
6. Do you know what the square footage of the house is?
7. What kinda condition is it in? What needs to be done?
8. What's the ballpark repairs? What would it cost to put this house back into mint condition?
9. So why are you selling?
10. What's the rent (only ask if its a rental home)
11. So, are you just looking to sell the house for what you owe on it?
12. Well what's your asking price?
13. Is that price flexible? (stop talking) What do you think you can do? (they might give you a range, let's pretend they say 50-55k)
14. I don't know if 50 thousand will work. The problem is that you're competing with all the foreclosures out there. If you want to get your price, what you could do is call a real estate agent, and within the 6-9 months you can probably have your house sold.
15. I'll tell you what, let's set up an appointment to walk through the house and we'll go from there.

Then go walk through the house. Don't say a word about anything as you walk though. Silence is golden.

When you are done writing everything down, and know how much repairs it needs just say "You know what, we already knew this thing needed work before I got here. I can probably do 35 thousand on the house." (35k is just an example)

If they are desperate enough, they might negotiate back to 37k or something reasonable. Act like you're thinking for about 10-20 seconds, and then take their counter offer if its low enough, you want them to think they won the negotiation because you took their counter offer, even though it's basically just as low as you needed.

If you jump too fast on their counter offer, the deal probably won't close because they are thinking they can get a better price on it now.

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Karen, I never heard that one before! I like it! Maybe I'll try it on my next call.

Karen, that is good! Fortunately, I'm reading your's and Dom's messages just before starting to make some calls.

Dom, you question #11 was one that I was already thinking about asking.

A lot of the questions as far as square footage, value, etc. I will already know the answer to, but I can see why a lot of users here wouldn't.

For me, as a realtor, if it's not something I can buy, it's my goal to turn it into a listing appointment and a listing for someone else to buy.

Both you and Karen mention being quiet, listening and stop talking, and that's good, too. I've worked in call centers, and it's done all the time. We call it a psychological pause - waiting to see what customer says next.

> Do you have a mortgage on the house, now?
and, if so
> Do you owe less or more than it's worth?
> What kind of condition is your house in?
> Are there any problems you're aware of (roof, plumbing, electrical, mechanical, floors, ceilings, etc.)

Thanks to you, too. I'll check that thread out as well.

Rick,

Your question "Do you have a mortgage on the house, now? and, if so do you owe less or more than it's worth?" Is summed up in question #11 on my post. The one I posted is a more subtle way to ask it, less intrusive, which allows them to open up to you even more.

And your question "What kind of condition is your house in? Are there any problems you're aware of (roof, plumbing, electrical, mechanical, floors, ceilings, etc.)" is summed up in questions #7 and #8 in my post. You want to ask them how much money it would take to put the house back into mint condition, because they mentally subtract that from the asking price they already had in their head when they first called you. It's a very sneaky way to negotiate the price down.

Yeah, I know. I really don't even need that information with this particular lead source, because they've already volunteered that information. For instance, the lady I just spoke to admits to owing about $92.5, is asking $110, and the tax appraised value (just a starting point, not my appraisal) is about $135,000.

I do appreciate your script; I printed it and have it in front of me, today.

One question I ask people when they're FSBO, in order to try to get listings, is "How's that been going for you [trying to sell on their own]?" Or, I ask, "Have you been getting a lot of calls or traffic?"

Of course, I also ask, "Have you been working with any other realtors?" when I call many people, sometime during the conversation, because if they are I won't interfere out of professional courtesy, unless I'm going solely as a buyer.

The aforementioned lady may have to sell for what she owes, and it may end up being a short sale. We'll see how it goes and how motivated she is.

By the way, this lead source also lets me know some about motivation. They at least tell me if the seller is "relocating," "divorcing," "facing foreclosure," etc.

I thought I would post to give you some info Jen posted here quite some time ago. I couldn't find the actual thread, but I will copy and paste here. I've had this saved and use it as my script "religiously"!! It is SO easy and once you do it once or twice; you'll come over as down to earth w/o seeming pushy, instead of asking questions that are too much "to the point", or intrusive! This has helped me TREMENDOUSLY in overcoming my initial fears of talking to homeowners/sellers!! I use it in conjunction with the Real Estate Lead Sheet from PMI??...and jot down specific info given by the seller as the conversation flows; i.e., trying not to sound SCRIPTED!!

I know as a realtor, you've obviously had tons of experience talking to sellers and the like, and but maybe you can gather a few nuggets w/this info!?

Here is the script:

blackboard:
on the what to say if no money or credit. I don't tell them that. When they call I begin building a re-pour, I begin my fact finding mission. I gather as much information about their situation, what they are wishing to do, motivation, flexibility, current situation, condition of the property, etc. HOW I enter/exit the property is irrelevant at this point. They want to know can I help them, will I buy their property, will I solve their problem......etc
**wanted to add, the whole first conversation I do in 5-10 min. Remember be compassionate but it's business. Keep emotions in check.
You have to feel this out as you go. Bottom line talk less, listen more. I'll just touch the highlights but the conversation goes something like this:

Me: "Hello, this is Jennifer Gray returning a call regarding a property that you may want to sell" ,

seller: "Yes, I saw your bandit sign over by Winn-Dixie that said you buy houses and I've got a property I need to get rid of".

me: "O.k. great, well first tell me a little about your situation and what you are looking to do" (this is the start of finding their motivation, find out where they are AT, to know where you can take them - 'so to speak') beware they WILL UNLOAD on you. lol Be understanding, don't judge and give them conversational confirmations that (kind of repeat some of the info back to them) to let them know you are listening and sympathize with their situation. Be genuine. They will feel understood and by you listening are their new BFF! (jk - kind of) but you are laying a foundation here.
If by chance they do not open up or give you the information that will provide their motivation ASK THEM "Why are you to selling"

I rolling into "tell me about the property" usually I'll gather as much about current condition as possible. I will ask the property specific questions (all the specs)

I personally have found saying something like "O.k. Kathy, tell me......if you were going to stay in the property and money was not a concern.....what you do to the property/what do you see needs to be fixed" that comment has been a rock kicker for me. I'll get something she MAY have forgot or just failed to mention off the previous question. "Like I would finally hire someone to fix the leak in the roof that I've been trying to my husband to fix for months"...etc you get the idea.
AFTER I gather their motivation and condition I then ask "what are you asking for the property"
get their # and say "is that flexible?"
CAN'T tell you how much I hear well I'm asking XXX but I'd take XXX lol

Then I divert back OFF the topic of the money to say "o.k. tell me, how long has it been that you noticed the leaking roof" doesn't matter what you say, you are diverting their attention off the money.

Then In a roundabout way, I bring it back with something like "you said you WOULD take $XXX for the property"...(insert PAUSE count to 3-5 IN YOUR HEAD the pause is powerful.) Then say "Is that the best you can do?" 9 out of 10 I get their TRUE bottom #.
Side note: based on the situation they gave me, I may have already found the bottom portion out. ex: they may say I owe: $XX and I'm about to lose it to the bank. If you can take it before they get it save further damage to my credit, I'll just walk away, or may say "I just need $3k to move", etc.
disclaimer (lol) THIS is what I have found to work for ME. I use to start in on the property details first, but ended up 'feeling' 'interrogation like 'with the questions, etc. So now I guide them through it and try to set an atmosphere that ALLOWS them to open up to me.
Then I say "o.k. Kathy, let me run some numbers on the property this afternoon and I will get back with you tomorrow around noon. Is XXX-XXXX a good number to reach you at that time?"
I personally do about 90-95% of the deal on the phone. If it's a possible 'go' for me during due diligence, I simply set a time to view the property and will present #'s face to face. How I structure my calls, leads to when I step foot on the property, I will be 'packing' contracts to lock it up. lol
you just have to feel it out, keep control of the conversation, doesn't matter if you are the buyer or investor Mike is the actually buyer. Right now, you are just finding out if it's something you can/want to move forward on. Actually done right, your seller can practically put the deal together FOR you. No matter the outcome, I personally always give them recommended courses of action/do something to assist.
Sorry long winded. sometime I get asked the time, and get caught up and forget not want to know how to build a watch. LOL so hopefully someone gets something out of it and I felt it was important.
blessings,
jen

Here is copy & paste of Lead Sheet:

Real Estate Lead Sheet

Sellers Name:_________________________________________________________

Property Address:_____________________________________________________

Number of Beds:______________________________________________________

Number of Baths:_____________________________________________________

Garage/Basement:____________________________________________________

Square Footage:______________________________________________________

Property Condition:___________________________________________________

What Needs Done:____________________________________________________

Ballpark of Repairs:___________________________________________________

Why are you selling:___________________________________________________

Is This a Rental:______________________________________________________

If So What Is Rent:____________________________________________________

Loan Balance (Payoff):_________________________________________________

Asking Price:_________________________________________________________

If I Can Pay Cash and Close Quickly Would You Take The Payoff:___________

Are Payments And Taxes Current:_______________________________________

What Is The Tax Assessed Value:________________________________________

Zillow Value:_________________________________________________________

Hope this helps

Karen thank you so much for sharing this bit of information. This has dramatically helped me!