How do you respond to cold calls?

Question

I’ve gotten listings from cold calls before, but they were homeowners, not investors.  If an agent cold calls you with the intention to list one of your properties, how would you respond?  What are your thoughts on cold calls?

Frank Geiger · Answer

I think to most investors everything has a price. Some may deny you based on where they are in their investing timelines. It’s worth a try. I’ve had more luck with homeowners due to investors wanting ridiculous prices for their run down homes that need “no maintenance”. But I think if you catch the right investor they would hear you out.

Randall Weatherall · Answer

I have been doing it and my calls are investor-oriented.  It starts off with wanting to list, as just about an cc should if you're an Agent, but then they usually become about whether or not they're still active investors in the market, what are they looking for, if I bring you a buyer will you sell?  If I can call 200 people and get a single listing and add 20-30 to my buyer's list, you better believe I'm a happy camper!  (And that's just the immediate responses, not the ones you're leaving VMs for and emailing to get a response later)

Tchaka Owen · Answer

@Bill Plymouth - I've received a number of such calls and I let the cold-caller know that I'm a licensed real estate agent and that I tend to list my own properties. I also commend them for calling because most agents will not cold-call (fear of rejection is a bigger deal than many will admit). There was one time when the caller was terrible (clearly a newbie starting out) so I gave him a few pointers on how to better get the attention of the seller. I did Mike Ferry for a while so I tend to cringe at terrible cold-calling. Figured it would be nice to pay if forward and give a few minutes of advice, hopefully it helped that person.

Jennifer T. · Answer

For me personally, my number is on the Do Not Call List.  And, while I realize the government unfortunately has no real teeth with that list, I have ZERO respect for anyone who cold calls me anyway.  So I usually respond with, "Well I obviously don't have my property for sale, so why are you bothering me?"  That's more wholesalers.  I've never had an agent call me to sell a property; however, I have received postcards from them.

However, I will play devil's advocate and assume you are not violating the DNC list.  Like anything else, any one phone call is going to be a huge long shot because most people who want to sell their property would already have it for sale.  But I realize agents and wholesalers do this all the time because it occasionally works.  Another problem an agent might run into is I'm guessing most investors already have a REA and that's who they would turn to if they wanted to sell their property.

As an aside, it is interesting to me the different "target" I appear to be, depending on the property.  My personal home is in an area where values have skyrocketed big-time over the last 5-10 years.  Wholesalers never call or send me postcards for that property.  But REAs do (postcards, no calls).  The REA postcards are usually a picture of a nearby house that they recently sold and for how much.  I could see postcards in that situation being really valuable because for people who aren't in real estate, because they may not realize just how much their home has appreciated.  It could be tempting to take the money and run!

However, I have one rental property where I get postcards/letters and occasional phone calls from wholesalers ALL the time.  But never REAs.  In fact, I recently purchased two duplexes about a mile away from it, and now those properties are starting to have the same attention.  But the other two rental properties I own in a different, but very similar, area?  Rarely contacted about (shrug), lol.  Which I'm not complaining about!  I wish no one would bother me.

Bill Plymouth · Answer

@Frank Geiger those are kind of my thoughts as well.  I’m in the middle of making a 200 name list of non-owner occupied duplexes.  I’m shooting for 6 appointments and 3 listings from the first call through.  Do you feel like this is an unrealistic number?

Funny story about an investor wanting a ridiculous price.  This guy wanted me to list his property.  He wanted 70k.  He told me there was “normal wear and tear” from the tenant that just moved out. He neglected to inform me that the reason the tenant move s out was because a tree fell and collapsed the back half of the house in.  It was definitely a strange meeting.

How do you respond to cold calls?

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