Buying First House W/ Direct Mail?

Question

Hi everyone,

Has anyone considered using direct mail to buy their own home?

I'm a software nerd, and had this idea of writing up an app to personalize letters to home owners in an area I like, and tell them how I'm thinking of offering them them 70-80% of their Zestimate of home (e.g. "Hi John, I'm a first time home buyer, love your house, was thinking of buying it for the range of $x-$y. Does this sound interesting to you? If so, please call me - xxxx)

Thoughts? Has anyone done this ? Have I gone nuts ?

May Emery · Answer

@Emil Harjic It is just as good an idea to mail motivated sellers for your own house as it is for investors. I have worked with people buying a big list for their investment business then really narrowed in criteri to fit just the house they personally want.

As for the letter, I think that it is creepy and risky to put in an asking price. The Zestimates don't know what shape the house is in. Maybe they have great kept up on maintenance and put in a new kitchen. Maybe they need a new roof and have ceilings that are falling down because of the leak.

Think about focusing your letters to certain segments of the population. One good one is Seniors with Long-time Ownership. With a list, you can specify home value, purchase date, equity, bedrooms etc.

Good luck!

Ehsan Rishat · Answer

@Emil Hajric I don't think this is as uncommon as you think. I have come across this quite a lot of times and more often than not it works. In fact, some of our customers have even sent out mail which read "Hi John, my wife and I are looking for a house in this neighbourhood and we loved yours. Please let me know if you are looking to sell." A very good tactic to get deals.

Hope this helps!

Pratik P. · Answer

I think that's a great idea. Many sellers don't like the idea of dealing with agents and listings. They just want to deal directly with buyers. Being owner occupant buyers would give you an advantage because you could offer more than investors who need to make a profit after financing and selling costs.