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How to Overcome Seller Objections

When it comes to being a subject 2 real estate investor, one of the major hurdles that my students encounter is seller objections.

It’s such a common experience, I wrote a book to help people overcome these objections.

But how?

How do you overcome seller objections?

I’ve talked to a lot of sellers, with some open to subject to or creative finance and some who don’t understand what that means.

The key is to understand what the objections are and how to go about overcoming them.

Common Seller Objections in Creative Financing Real Estate

One of the most common seller objections is what a seller believes their current house is worth.

I had a call with a seller who believed her house in Florida was worth $150,000.

However, when our contractor saw the house, he thought it would take between $90-100,000 to fix up the house to get into a condition that could make us money.

The seller didn’t believe that and thought our contractor was nuts.

You can watch our conversation below:

Now, I didn’t argue the point about our contractor or get into a yelling match with her.

In fact, I started the conversation with an opinion on what my partner and I discussed and what we were hearing from the contractor.

With cases like this, I just tell the seller that I’m not the buyer for them, which is perfectly okay. I do let them know that I can try to find a buyer for them to better fit their needs.

What ends up happening, though, is that a lot of these sellers will contact us again because they can’t find a buyer or they’re being given a far lower price than what they want.

Why Sellers Object to Subject To Real Estate

This is just one example of a seller's objection.

Another big objection is the seller wanting to speak with their attorney, accountant, or even real estate agent.

Consultation with an attorney

Again, this is perfectly okay and if you have this particular objection, you should respond that you will happily speak with the seller’s accountant/attorney/real estate agent if they’d like.

What these objections come down to is just knowledge on the part of the seller.

As investors, our job is to yes, make money, but also help the seller understand how this transaction not only benefits us, but benefits them as well.

A lot of sellers have never heard of what we’re doing - subject to, seller finance, or creative finance.

So when you approach them with this (or approach their friends, family, accountants, lawyers, etc), explain what it means for them and how you make that happen.

That helps the seller understand the process and helps to alleviate their fears or misunderstanding.

Want to learn more about overcoming seller objections?

And if you want to get started as a creative investor or want to learn more subject to real estate, become a member of our great Subto community!


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