I'm trying out my own direct mail campaign in order to find properties to rehab.
I've only spoken to a few sellers so far. Everything I read and learned about talking to sellers, really focuses on the actual motivated and distressed sellers. I sent some yellow letters to absentee owners and the ones that called weren't motivated. They wanted full retail (or more), just fixed up their rental etc.
I ended the conversation with something along the lines of "Sounds like you have a very nice home, that's not what I'm looking for at this time."
Do you tell sellers why you want their property?
How do you end the call quickly and courteously?
Bryan, you're asking the right questions.
Tell them you'd love to do business, but you are both not on the same page. Tell them you're in business to do business and if they change their minds and really want to sell, to give you a call.
You will always get the tire kickers and time wasters, but that's your job, sort the wheat from the chaff and never give up.
Good luck with it, you'll be fine.
@Bryan H. Thanks for your post. I agree with @David T. possible responses for ending a call. It is also wonderful to keep in mind that your direct mail campaign is working to deliver the goal of getting people to call you.
I use direct mail marketing and receive a lot of calls from prospective sellers. I get calls from people telling me that they are responding to the question I asked in the letter they received; "Do you want to sell?" Even though the response may not be the answer I want to hear, it is a response. Sometimes it is nice to get confirmation that the marketing campaign is working. If nothing else, it helps to keep me motivated to continue the marketing campaign.
Direct mail marketing is like bottom trawling. You get a little of everything in your net whether you mean to catch it or not. The best advice I have is to network with other investors in your area. Look how to monetize that lead. Remember, one mans trash … You may make relationships with someone that is looking for that exact lead.
For the CASH OFFER, I simply tell sellers that "Our program works best for home owners whose property needs a lot of work and who are in a hurry to move on without having to make expensive repairs to the house. I understand that's not your situation, but I'd like to give you my cash offer anyway. If you're situation changes, it might become a more attractive option for you."
Then - I give them the cash offer! I don't care what the house looks like or whether they are "distressed". I MAKE AN OFFER TO EVERYONE. You never know, and you never make a goal if you don't take SHOTS at the goal...
Now, I also have an agent partner (and I'm studying for my license now), so if my cash offer doesn't meet their needs, I'm going to try to monetize that lead however I can. People are calling us telling us they are interested in selling their house! That is GOLDEN.
Last point - engage with everyone and tell them what you do, and if it's not a deal with them, ASK THEM FOR REFERRALS. "Do you know anyone that's in the situation I described, perhaps a friend or family member that has a house they need to sell ASAP?". You get the idea! =)
“You miss 100% of the shots you don’t take.” ~ Wayne Gretzky
Every contact you make is valuable. It is you that determines it's ultimate value.
Over the years, I have had many prospective clients contact me with issues or problems that I couldn't solve/deals that I couldn't take. I treated each person well because it was the right thing to do. In the end, those contacts have paid unexpected dividends.
In the business of real estate, you never know the source of your next deal. I do a lot of business off of referrals, some of them years old. Sure, that over-priced house that Mr. & Mrs. Jones called you about may not be the deal you are looking for, but when that junker down the street is going into default, you will be the first person they recommend the owners to call.
Also, be of service. @Dev Horn has it right, these people are contacting you because they are interested in selling. Make an offer anyhow. Develop a good relationship with an agent in your area who can refer you to distressed seller's who don't want to pay commission and want out of their homes quickly.
Learn how to develop value with each contact you make, otherwise you are wasting money on postage.
First off, great thread and this thread answers the exact questions I had.
I tried this today actually. Had a seller that definitely was not motivated (he said he believed his condo was worth 60k but was hoping to get 80k for it). I told him it is not the exact situation I am looking for, however if he is looking to sell I can refer him to a realtor to help him market it and try to get it for that 80k. He than asked what I would offer, I tried to dodge it since he was obviously not motivated, but since he insisted I told him...20 to 25k. He was obviously not happy and...Repeated what I said and than hung up.
In these situations do you still think I should throw an offer out or just try to avoid it to not insult the person who followed up?
In a similar situation, after hearing what he wants for it, I might not offer my number at all (especially over the phone) - you knew you guys were in two different universes. But the other issue is, in that quick conversation, the two offers were treated like apples when really ones an apple and the other an orange.
Your CASH offer is guaranteed and will happen in less than 30 days. A LISTING is not an offer - it's just a LISTING. Chances are, that listing at $80K would expire unsold after 6 months because his expectation is based on hopes and dreams. So, one is an OFFER OF ACTUAL MONEY, the other is - basically - an advertisement.
Some guys will put this on a sheet of paper, side by side, to show the pros and cons of each and make it clear than one side is a promise (your offer) and the other side is a hope (listing, especially at a high price).
If a seller holds on to a house for 6 months - that costs money - house payments, insurance, taxes, utilities, etc. That holding cost over 6 months or a year could easily wipe out the "profit" that someone might ultimately get by holding out for a "retail" offer.
If someone wants to talk retail HOPE vs. wholesale OFFER, be sure to include all these other aspects that should be considered.
Fantastic advice! I appreciate the feedback. I've actually been very happy with response rate of my first marketing campaign so far getting a 12-15% response rate. However none really motivated.. Mostly saying not really looking to sell but "everything has a price".
Looking forward to getting my first "Real" offers out there for motivated sellers.
Thanks again Dev...Appreciate it!
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