How to be a Genuine Problem-Solver

Somebody once gave me some great advice about being a short sale investor. What stood out in my mind was that it had nothing to do with the usual training on how the foreclosure process works.

Nobody can say that short sales aren’t complicated. You’re trying to juggle marketing, technology, home repairs, bank negotiations, title issues, and the people that help you with all of that. But there’s one thing that has to happen first.

Before you deal with the legal details, you have to deal with the emotions.

People who are about to lose their house are experiencing some wild emotional swings, even if they won’t admit it. They’re afraid because they’re not sure what’s going to happen. They tend not to trust everyone who offers them help (and they shouldn’t). Some are experiencing serious feelings of loss, while others are looking forward to getting out. And just about everyone feels some degree of guilt for not being able to help themselves out of their own mess.

That’s a huge part of a homeowner’s state of mind when they first meet you. Whether or not they show it, you need to stay aware of that, because it’s there.

So, the advice was to pay attention to six important emotions when you first talk to a seller, because it may make a difference in whether or not they agree to let you help them at all.

Put on your psychology hat for a minute. Three negative emotions that people want to avoid are fear, loss, and guilt. Think of these emotions as problems which need to be solved. The solutions involve three positive emotions that people want to run to: happiness, gain, and pride. These are the emotions that you want to guide people toward as you wind up your Positive Results Conversation.

It all starts with your first meeting at the property. When you first talk to the homeowner, don’t hit too hard on what you do. Ask them to tell you their story. Find out their strongest reactions to the situation, then try to discern how to approach each one.

Next, you will need to incorporate that into your presentation. When you describe what can and can’t happen, you’ll probably be sticking to a script. As you learn to give your presentation, you should also learn at which point in that presentation you should address their specific emotional issues.

It’s not as if you need to function as a counselor here. Many people have more personal problems that you need to be personally worried about. Your focus should be on those emotions surrounding the impending foreclosure.

Is their main focus on the fear of the unknown? Take extra steps to assure them that you’re for real, you know what you’re doing, and you will keep their best interests in mind as you work. Help them see the possibility of confidence and happiness.

Is their main focus on losing the family home and the memories that go with it? Make sure you translate that into looking forward to the future and what they can gain through a short sale. They’re also losing a financial monkey on their back, and gaining the freedom and relief they deserve.

What if the guilt is weighing on their mind? Mistakes don’t have to be the end of the world. The short sale of their home is just the beginning of an opportunity for a fresh start. If you have to use the old “turning lemons into lemonade” analogy, go for it. There’s a sense of pride in making a positive decision to move forward.

Get to know these people as you talk to them, because without doing that, you may not get their business. Besides, telling their story to the bank or the BPO agent may help you later. Don’t apologize for wanting to make money on the deal, but don’t ignore the humanity of the situation, either.

Put a note about those six key emotions in your presentation book, if it helps you remember what you’re really doing and why. The main thing is to craft your presentation in a way that helps each homeowner understand about moving away from pain and toward gain.