Seller Objections | Your Offer Is Too Low!

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If you’re new to my channel my name is RJ Bates III. Myself and my partner Cassi DeHaas are the founders of Titanium Investments.

We are nationwide virtual wholesalers and on this channel we share EVERYTHING that we do inside our business. So if you’re looking to close more deals - at higher assignments - anywhere in the country… You’re in the right place.

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Over 10 years in the real estate investing business
Closed deals in all 50 states
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Chapters

• 0:00 Why “Too Low” Doesn’t Mean Wrong
• 0:47 What Not To Say
• 1:50 The Four-Step Objection Framework
• 3:22 Two Paths: Unrealistic vs Realistic Sellers
• 4:00 Three Questions That Reveal Motivation
• 5:00 Use Comps As Guardrails
• 6:01 Handling Common Seller Responses
• 7:19 Negotiate With Levers Beyond Price
• 9:08 Bad vs Good Role Play
• 10:31 Force A Decision And Follow-Up
• 11:31 What’s Next And Audience Ask

Transcript

SPEAKER_00: 0:03

If you're making offers in wholesaling, you will hear this constantly. Your offer is too low. You're just another low baller. And most wholesalers respond in one of two ways. They get defensive and start arguing comps, or they panic and raise the offer to just keep the conversation alive. Both are rookie moves because your offer is too low, usually doesn't mean you're wrong. It means one of three things. They have a higher number in their head, they don't understand why your number is what it is, or they're testing you to see if you're a real buyer or just another clown with a phone. So today I'm going to show you how to handle your offer is too low, like a professional wholesaler, without begging, without overexplaining, and without negotiating against yourself. Let's start with what not to say. Okay, it's the fastest ways to lose control. Bad response number one. What's the lowest you'll take? You just told them that you have no basis for your offer and you're fishing. Bad response number two. That's the best I can do. That just shuts down the conversation and it makes it a standoff. Bad response number three. Okay, well, what if I do X amount immediately? Now you're negotiating against yourself and training them to push harder. Your job is not to win the argument, your job is to discover the gap and decide whether the gap can be closed. So let's start off with a four-step framework. This objection is common enough that you need a simple system that you can repeat. Step one, validate lower resistance. You say, totally understand. If I were you, I'd want to get the most I could too. That's not weakness, that's you building trust and rapport. Step two, calibrate, force specifics. So then you ask, help me understand, too low compared to what? This is the line that can separate an amateur from a pro because too low is emotional. We need facts and numbers. Step three, justify with constraints, not opinions. So you explain the why behind your offer in a clean sentence. The reason why I'm at X is because of the repairs and the prices that investors are paying in your neighborhood. It's not a monologue, it's just a quick, clean sentence. Step four, close with a conditional. Stop wasting time. So then you ask the question that protects you. If I could get closer, are you ready to move forward today, or is there something else holding you back? This prevents endless back and forth. The two paths, and you need to know which one you're on. Okay, so let's talk about these two different paths. Once they say your offer is too low, you're gonna go down one of those two paths. Path A, they're unrealistic. Retail price on a cash timeline. That's fine. They want the HGTV money without the HGTV effort. Okay. Path B, they're realistic, but they need clarity or reassurance. They're motivated, but unsure that you're legit or unsure about the process. Your job is to figure out which path in under 60 seconds. So here's how. And ask these in order. What were you hoping to get? Now we should already know their initial asking price, but to ask them again, what were you hoping to get? That's where normally that asking price will come down. How did you come up with that number? And then why is that number important to you? Those three questions tell you everything about their expectation, their logic or the lack of it, and whether they're actually motivated. If they say, I just want$250,000 because my neighbor's house sold for$250,000, well, then you could simply ask, got it. Was your neighbor's house updated? And was it a retail sell? Because they're mixing retail and investor numbers. If they say, I want$180,000 because I'm behind on taxes and I need to pay off the lien. Well, now you have real motivation and a real problem to solve. So how do you respond without getting into a comp war? Many wholesalers try to win this negotiation with data. You send over 12 comps and a rehab estimate and a full-on dissertation. And nobody wants to see that. No one wants to hear that. And even if they do listen to you, it's just going to turn into a debate. A better move is to use comps as guardrails, not weapons. So here's a clean line that you can use. I'm not trying to convince you, I'm trying to be accurate. Updated houses are selling around X amount. Yours needs work. So investors have to be below that to make it make sense. Then immediately go back to a question. Are you open to a cash offer that trades price for speed and certainty? Or are you willing to wait for retail price? That frames their decision. Now, some of the common seller responses. Let's start off with response one. I won't take that. You, I understand. Just so I'm clear, what number would you say yes to? Then you pause. If they give a number, you follow with, if I got to that number, are you ready to sign and close on your timeline? This is critical because sellers love to toss numbers out like it's a wish list, but you're turning that wish into a full-on commitment. Response two Another investor offered more. You. Okay. Is that in writing and they can close on your timeline? This is a reality check. Most higher offers are either verbal, full of contingencies, or they're not actually able to close. And even in today's time frame, it might not even be the cash offer that they think they're receiving. It might be a novation. It might be a net MLS listing. There are so many different strategies that they might not even know are coming across their tables as a cash offer. So then you can say, if they can truly do it and close on your timeline, you should take it. If they can't, we can still solve the problem. That calmness, that confidence builds trust. Response three, you're just trying to steal my property. You I get it. I get why it feels that way. My number isn't based on what I want, it's based on what the deal supports after repairs and profit, my buyer margins. I'm not asking you to love it. I'm asking if it solves your problem. Then you ask, what's the main problem that you're trying to solve here? Is it time, condition, or certainty? You bring it back to their motivation. So let me say something that will save you thousands. If you raise your offer every time you hear too low, you will train sellers to do one thing: push back harder. They learn that if I complain, he moves. That's not negotiation, that's you folding. Instead, you negotiate like this: you ask questions, you identify the gap, you justify your number, you explore trade-offs. Price is not the only lever. Other lever levers include timeline, leaving their junk behind, occupancy, repairs, certainty, moving assistance where appropriate and compliant. If you're only negotiating price, you're missing the point. We don't buy houses, we solve motivated sellers' problems. So let's go through some bad versus good role play. Bad version, seller, your offer is too low. You will the comp say, and then we'll just go ahead and insert a five-minute rant right here. Seller, okay. You so can you do it? Seller. No. Conversation is dead. Good version. Seller, your offer is too low. You totally understand. If I were you, I'd want the most I could get too. Help me understand. Too low compared to what? Seller. I was thinking 190,000. You got it. How did you come up with 190,000? Seller. My neighbor sold for 200,000. You. Okay. Was their house updated? Seller. Yeah, theirs was updated and it was nicer. You. That's the catch. Updated homes are selling around that range. Yours needs work. So an investor has to be below that for repairs and profit. If I could get closer, are you ready to move forward today, or is there something else holding you back? Now you're negotiating with reality and not emotion. At the end of this objection, you need to force a decision point. You say, here's where I'm at. I can do X dollars and close on your timeline with no repairs and no commissions. If that doesn't work for you, that's totally okay. Listing may get you more. Which direction do you want to go? This is not pressure. This is clarity. Most sellers appreciate clarity because they're overwhelmed. If they don't accept on the call, well, you can say and send a text message. Totally understand wanting more. My offer is X dollars, as is, closing on your timeline, no repairs or commissions. If anything changes, timeline, condition, or you decide you want certainty, just reply update, and I'll jump right back in. It's simple, professional, and it keeps the door open. Now, on the next episode, we're going to be going into I'm not in a rush. And I'm going to show you how to handle that without wasting weeks chasing someone who's never going to sell their problem. So comment the objection that you want me to cover next after that, because I'm open to hear what objections you're struggling with on your seller calls. And I'll tell you how to overcome it and not ruin those leads that you're paying for. Show me some love, like today's video. We'll see you guys tomorrow.