Handling The Most Common Seller Subject-To Objections

This post dives into a critical topic for creative finance investors: “Common Objections Home Sellers Have About Subject-To Deals.” When approaching sellers with a subject-to offer, you may encounter resistance or concerns—understanding these objections and knowing how to address them is essential for successful negotiations and deal-making.

As discussed in Episode 15 of their podcast, Jeff and Ken will discuss five of the most common objections sellers have to subject-to offers and offer actionable tips for overcoming them. By addressing these concerns effectively, you can build trust, reassure sellers, and create a win-win situation that helps them move on from their property while helping you grow your investment portfolio.

Top 5 Common Seller Objections to Subject-To Offers:

1. “Will This Affect My Credit?” Many sellers worry that leaving the mortgage in their name will negatively impact their credit score. Jeff and Ken discuss how to reassure sellers that timely payments will not harm their credit, and they also explore ways to structure the deal to protect both parties.

2. “What Happens if You Stop Making Payments?” Sellers often fear that if the investor stops making payments, they’ll be left with the financial burden and potential foreclosure risk. Jeff and Ken explain the importance of establishing credibility, using escrow services, and even offering contingency clauses to ease the seller's concerns.

3. “Can’t the Bank Call the Loan Due?” The due-on-sale clause is a significant concern for sellers who worry that the lender will demand full repayment upon discovering the property transfer. This episode explores how to educate sellers on the likelihood of the clause being enforced and strategies to minimize this risk.

4. “Why Don’t You Just Buy It Outright?” Some sellers may feel uneasy about creative financing methods and question why you don’t simply purchase the property with a traditional mortgage. Jeff and Ken share how to explain the benefits of subject-to deals for both parties and how this method can help sellers in situations where they need a quick solution.

5. “What’s in It for Me?” Ultimately, sellers want to know how a subject-to deal benefits them.

Jeff and Ken discuss ways to demonstrate value to the seller, such as relieving them from mortgage payments, helping them avoid foreclosure, or providing peace of mind through flexible closing terms. By understanding and addressing these common objections, you’ll improve your negotiation skills and make your subject-to offers more attractive to sellers. Jeff and Ken share their proven techniques to handle these objections professionally, building trust and creating lasting, positive relationships with sellers.

💥 Looking to master subject-to deals and other creative finance strategies?

Visit Sub2Empire’s website for more resources, and check out the Sub2Empire Creative Finance Academy to get in-depth training on creative real estate techniques. Learn from the pros and elevate your investing skills today! Be sure to like, subscribe, and hit the notification bell to stay updated on our latest episodes! Have questions or want to share your own experiences with subject-to deals? Drop them in the comments below, and Jeff and Ken will tackle them in future podcasts.

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