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How To Close a Real Estate Deal:Top Techniques
June 20, 2021 6 minute read
Closing a real estate deal is the end goal in any real estate investor’s mind. It is the culmination of all your hard work and diligence, and it is when you are rewarded for your efforts. No matter how many deals you’ve done, closing is always the most important part.
Every deal is different with regard to the situation, the property, and the seller, so you must approach each close thoughtfully and with the right strategy. Using effective real estate closing techniques is key to wrapping up negotiations smoothly and with beneficial results for everyone involved. Here, we’ll share the top techniques and strategies so you can successfully close more deals.
Top Techniques & Strategies for Closing Real Estate Deals
When closing a real estate deal, you have a variety of options to choose from that will either expedite the deal or delay it. By thoroughly understanding the situation, you can choose the right real estate closing technique and complete your transaction with ease.
1. Gather Information
The first step you’ll want to take is to gather all information upfront to determine what is most important to the seller. Remember, this is a mutually beneficial deal, and you want to ensure that both yourself and the seller are getting the most out of it. By being genuinely curious about what is important to them, you can better communicate with them and their frame of reference.
2. Stress the Urgency of the Deal
When a seller just needs a gentle nudge to get them to close, you can create a sense of urgency and apply some pressure to act. Communicate with them the legitimate reasons they would want to make a decision today. For example, if the market is decreasing, show them the data proving this. If any damage to the structure is only going to get worse as time goes on, point this out to them. Let them know that closing quickly is beneficial to them backed by legitimate reasoning that applies to each specific situation.
3. Justify Your Offer
Sometimes sellers need affirmations about why your offer is the best deal for them. Take the time to go over all the reasons why your offer provides them with the most ideal outcome and stress the fairness and reasonableness of your offer. Disclose the details and explain the costs involved in the sale to show full transparency and demonstrate your professionalism.
4. All Options Point to Yes
Take control of the options and show them why your deal is one they should say “yes” to. In this real estate closing technique, you provide several options to your seller that all point to closing. No is not an option which makes it more difficult for the seller to say no, and the seller feels like they have power because they get to decide between multiple options. For example, does your seller want all cash or financing? Do they want to sell quickly at a lower price to you or wait for an agent on your team? Discovering the answers to these questions will help you to get the sale, while still presenting them appealing options.
5. Take Away the Deal
Have confidence in your original offer. If the seller wants to negotiate, stand your ground and walk away if need be. In some cases, taking the deal away will end up making the seller appreciate and want your original deal. This strategy works when you do your homework and make them the best deal you’re willing to make. While this may sound like a simple technique, it can be very effective. Offer to withdraw the offer and watch your seller’s response. This strategy is especially helpful for sellers who are time-consuming and don’t seem like they will progress toward closing. You demonstrate your confidence in your product by being willing to let the seller go.
6. Summarize the Deal
The effectiveness of this strategy lies in the fact that you are reminding the seller about all the reasons why this deal is right for them. Go over the benefits of the deal and summarize the discussions you’ve had with them that lead up to the next step which is closing the deal.
7. Sleep on It
If the seller seems apprehensive or like they need some more time to think over the deal, offer to let them sleep on it. Try to have them sign the agreement with the understanding that if they change their mind within a window of time it can be canceled. Oftentimes sellers won’t want to let go of a deal once they have it.
8. Focus on the Seller
Pampering your seller can be a successful strategy. Focus on making your motivated sellers feel like everything is about them and present all the benefits they stand to gain with the deal. If possible, add bonuses that will make sellers feel like they are getting something special that’s just for them. If your seller needs money to move out of the house, offer to pay for those expenses, so they can get out in a shorter time frame. This added incentive may be the thing that closes the deal.
9. Assume the Deal Is Closed
Allow your seller to envision the deal when it’s closed. A great way to do this is to talk to the seller as if they’ve already decided to sell. You change their focus to the future and allow them to see all the benefits that closing this deal offers to them. With every conversation, act as if they are moving forward. Ask your seller if they would like to sign the deal electronically or on paper. By doing this, you assume the deal is happening and show your confidence.
10. Set the Date
Some sellers may not be ready to sign the deal and while you don’t want to give up on them, you cannot wait forever for a decision. Instead, select a date on the calendar and suggest that they make their decision by that date. This sets the parameters for when you will hear from them and gives them time to consider their options.
8 Tips for Closing a Real Estate Deal
No matter what closing technique or strategy you use, closing a real estate deal takes skill. Over the course of your career, you’ll close numerous deals and become an expert in how to close a real estate deal. By following these 8 tips, you can make sure you have an effective system in place so every deal is exciting and low-stress.
1. Stay Organized
This may seem like a step that needs no reminder, however, your level of organization can make or break any deal. Sellers want to feel like they are a priority to you and that you devote the right amount of attention to them. If you can’t remember when you last contacted them or what your last conversation was about, they will feel unimportant and undervalued. Use real estate lead management tools to keep track of all the details and stay organized so your level of seller service is exemplary.
2. Practice Your Script
Let’s face it, when you reach the point of closing a deal, you should be relatively comfortable talking to your seller and explaining where you are in the process. When you’re first getting started, it makes sense to follow a real estate prospecting script to get your seller, once you’ve become a little more confident, you should toss the script. Don’t use the script as anything more than a guideline and focus on asking questions and genuinely listening to your seller. This will help you to provide the best solution for their problem. Prepare yourself ahead of time for any potential seller responses or questions they may have.
3. Be Persistent
You didn’t get to the point of closing a deal because you dropped the ball. You likely sent your seller multiple real estate direct mail postcards just to make your initial contact. Persistence paid off then and it can pay off now. Communicate consistently with your seller and follow up energetically to reach the finish line.
4. Encourage and Build Confidence
It is only natural that sellers may experience doubts when making such a monumental decision with their home or their money. Your job is to reassure them and encourage them to continue with the process. Talking them through issues as they arise or soothing your seller’s doubts and concerns will enable you to move toward closing the deal. Some sellers may feel trepidation just before signing and that’s when you remind them of all the benefits of moving forward.
5. Be Direct and Clear with Your Buyers and Sellers
By now, you and your seller have built a relationship and there is a level of trust that you’ve developed with them. During closing, be sure to be straightforward and deliver information clearly to ensure your bond continues and they find you trustworthy.
6. Listen to Seller’s Needs
Listening is an extremely important trait when you’re closing a real estate deal. It can prevent miscommunication from happening and avoid challenges. Make your closing process as smooth as possible by hearing what your seller needs.
7. Be a Problem Solver
This real estate closing technique cannot help but work because you are solving your seller’s problem. Ask questions and become familiar with what issues your seller may have with the deal. Then, solve those problems for them and make it easy for them to move forward toward the close.
8. Use Real Estate Closing Techniques that Work for You
Above all, be sure to use closing techniques for real estate that work best for you. Not all the strategies and techniques will be as effective as others and finding the ones that work for you is one of the most important parts of the process. Develop your closing skills by playing to your strengths and you’ll be pleased with the outcomes.
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