I am about to embark on my first door knocking journey and I wrote this letter to leave with people that aren't home or aren't ready to sell yet but may be interested in the future. I was wondering if everyone out there had any feedback/tips to improve the letter and/or interaction with the potential seller. I decided that I won't prepare a script/pitch I will go by feel and take notes on what is perceived best by the homeowner. Also, I was wondering everyone in Ottawa has done this before and what there results were?
I really appreciate any feedback. Thank you and have a wonderful day,
I am interested in buying a house in your area, and the style of yours particularly appeals to me.
I have my finances in place, have no existing property to sell, and could proceed with buying your house immediately. The advantages of selling to me are as follows:
- I will pay fair market value
- No realtors commission (5%+HST on the purchase price)
- Flexible closing date- You pick it
- No repairs needed- I will tailor the house to my preference after closing
- Maintain your lifestyle- It sucks always being on call and displaced whenever someone wants to see your home
- Selling to someone you like- Chance are we’ll get along well
If you are considering selling your house, then please contact me either by phone or e-mail. Thank you very much for your time.
@Chris S. - Great to see you taking a proactive approach to finding deals! I do wonder though, on the legality of sales solicitation in Ontario. I tried some Google searches but came up with nothing. The reason is, I've never once received a door knocking note and I live in one of the hottest markets in Toronto. The mail I do received (about 2-3 pieces of direct mail daily) always has this disclaimer at the bottom along the lines of "not intended to solicit properties already under contract". Anyway, just double check before leaving these letters!
@Ming Lim Thank you for the feedback. I will call and ask my lawyer Monday about that clause and I'll let you know. I think only Realtors have to have that clause but I'll check and make sure.
Also, what are your thoughts on the new mortgage rules in Canada and there potential impact on pricing?
Having insured buyers qualify at 4.64% rather than current rate of roughly 2.5% diminishes their borrowing capacity by roughly 20%. Ie. someone that could qualify to buy a property $500,000 can only buy a 400,000.
I'm having hard time finding what percentage of home buyers need mortgage insurance. But I read a report by Genworth that indicates that 63% of first time buyers put less than 20% and first time buyers account for 35-50% of the market depending on the survey. I haven't been able to find numbers on what percent of the other 50-65% of buyers need insurance but for simplicity let's say it's 37% so that 50% of the market requires insurance.
Do you think that if 50% of the markets purchasing power diminished 20% that this will cause prices to decrease 10% (50%*20%)?
I am looking at offering on a couple of properties in Ottawa and I think there is no question that the gov't change in policy has a negative affect on home prices but I do not know how to quantify it.
Any feedback/ your thoughts would be appreciated.
If you are dropping off door knockers or letters with the intention of purchasing properties for yourself, there are no legal issues ... even if the property is under an agency agreement with a realtor (the owner would just redirect you to the realtor).
If you are canvassing for properties with the intention of finding a buyer other than yourself, then you are wandering into the grey area of wholesaling versus agency (which requires a licence).
That's great. Thank you @Roy N.
@Roy N. - I was hoping you'd chime in! Good to know - I wonder why this strategy isn't used more in that case. Maybe the cold weather stop people from door knocking. :)
@Chris S. - You're doing the right thing to try and ground your assumptions, but figuring out exactly what the impact to the market will be is very difficult. As you mentioned there will undoubtedly be an impact to the market, but it's near impossible to say how deep and lengthy these changes will affect pricing.
If I were you, I'd look closely to see if the property you're interested in are more affected by these new rules. For example, if you business case relies on purchasing starter homes and flipping them, you might want to look at the risk in that product right now. In that scenario, you're dependent on a stable or increasing market to exit the property with profit. However, if you were buying multifamily, stock that's typically left to investors, your risk is likely less.
Finally, don't forget the old adage "It's not timing the market, it's time in the market". Your business case should be able to withstand some fluctuations in market value without falling apart.
That's my two cents!
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