Re: Frustrated by sellers who should be motivated - Posted by B.L.Renfrow
Posted by B.L.Renfrow on February 14, 2000 at 11:15:19:
One thing I would not do, if at all avoidable, is to send out your contracts with potential sellers. Once they get home and start reading through the thing, they invariably come across stuff they don’t fully understand. Then, they either procrastinate because they don’t understand, or worse yet, they get third parties involved, who also don’t understand. That’s where the concept that “a confused mind always says no” enters the picture.
If at all possible, the best solution is to sit down with the seller when you have reached a verbal understanding and go over the contract. Depending on the situation, this may consist of skimming through the thing and saying, “sign here,” to reading aloud each and every line and answering any questions as they arise. But I would NEVER allow a seller to leave with my unsigned contract. If they say they want to review it with their attorney, spouse, fairy godmother or whatever, I will arrange to meet together with the advisor and seller and personally answer any questions at that time, but I will not send the seller home with the contract, because if you do, the chance of actually completing the deal will plummet like a rock.
As for the seller across the country, it is, of course, more of a challenge. One thing you can do, as someone else mentioned, is to include a time limit for a response or the contract is voided. This will help - but not completely eliminate - the risk of inaction due to procrastination, and it will also cut down on sellers who will then frantically shop around for a better offer. Another option is to send the contract via fax and immediately get on the phone and review it with them, so you can answer any questions right then and there, and then ask them to sign and fax it back.
Finally, there’s an element of salesmanship involved. You have to know when and how to close, and how to ask for their signature. If you don’t ask, they may not volunteer!
Also, don’t forget that perhaps your self-described motivated sellers really aren’t so motivated as they claimed. In any event, don’t waste too much time if they clearly don’t intend to follow through. And don’t get too discouraged from these two situations. After all, most of us get many more deals rejected than accepted.