How Do You Convince Homeowners
Each investor is different in their approach to homeowners. Once you have your chance to speak to the homeowners, what do you tell them the advantages are if they were to go with your service?
For example, homeowners might want to list their property for sale with a real estate agent, and get full value (minus the commission paid to agents).
You don't convince them. If you have to convince them to sell, then they're not motivated yet. In fact, THEY should be trying to convince you to buy. Get the idea?
It's simple. Lay out your deal, whatever it may be. The "convincing" is that it is a real deal, it's here, it's now, there are no extra fees to sell, and most importantly, the pending foreclosure crisis is stopped. No offense to any agents, but an agent will never get "full value" on a property, even if they sell it at FMV. They will always deduct their commissions/fees, and usually there will be some seller's closing costs/attorneys fees, etc. Add to that the fact that, in most cases, it will sit on the MLS for 3-9 months before a serious offer is made, which will more than likely not be "full value."
Roger
If the homeowner contacted you, there should be no convincing to do. They called you, so that means that they are at least somewhat motivated. You then act like you can live with or without the deal (never let them know how excited you are) and like Roger said, lay down your deal for them to ponder for about 24 hours. If they are serious, they will be back. If not, move on to the next one. Good luck
There's good advice in the above 2 posts. No need to sell them if they are truely motivated.
The key is to refrain from letting your emotions get in the way. You should be completely detached from the outcome. If I get it O,K.. If I don't get it O.K.. He who cares least generally wins.
Take the three above advices. I made an offer on some preperty with a "Time is of the essence" clause. 2 months after the clause had laps, the owner called me back and asked if I was still interested. Again don't show your emotions, just simply state, "I'm always open to look and listen". I ended up getting the property for less than my original offer.
If they are motivated, they will come...
All the above posts are true, but if you're facing stiff competition, then how do you make your offer stand out from the rest?
Imagine you're an investor in NYC, and before you can send a letter, postcard or approach their house, there was already 20 investors before you, how do you make your offer stand out from the rest?
If you're a homeowner, you're fed up with everyone trying to buy your home and trying to help save their credit. Everyone's got the same line, so how do you distinguish your offer?
I forget who it was on here (forgive me) but someone said that you need to show them how much you care about them. when they call use your soothing "I want to help if you will let me" voice. you know the one that sounds like mom after a really bad day in elementry school. And you better be sincere or they will see through you. Good luck.
I think one of the hardest things in this game is not beating yourself up trying to get an otherwise unmotivated or unrealistic seller to act. Lately I have been facing the complacent, in denial type, that waits until one week before the sale to call me then cant even bother to return my calls, sign authorization to release information, etc. I probably lose 15 deals a year because I refuse to go to their house and try to motivate them to act. If they are ready and truly motivated then they will be willing to sign a fair contract within 48hours. If they say they are entertaining other offers, or trying to get refinanced, etc, then I say be polite send a follow up letter and let them know you are available to help when they are ready.
I agree with GJB
There are too many others out there. You just need to through enough mud on the wall and some WILL stick.
You're right, the pre-foreclosure market is a fairly competitive area right now. There are a lot of foreclosures, so they are a lot of pre-fores as well. In fact, this is where the majority of new investors start because it is the simplest area for them to understand the seller's motivation.
Likely, these newbies are the majority of your competition, and have probably read the same books/courses that you did on the subject That said, you stand apart from the rest by being professional, polite, and straightforward. You do that by walking, talking and acting the part of a professional. Know your area. Know your profession. Dont' always go for the sell. Offer them other options if they truly have them. Make followup calls and send out thank you cards even to the "we're still working it out," PFs. Have your cards and stationary made at print shop as opposed to your home printer.
You'll stand out because you'll seem better than the other "scavengers" to the sellers. They'll remember you first because your thank you calls/cards.
Roger
Quote:
On 2004-01-05 22:41, sammyvegas wrote:
The key is to refrain from letting your emotions get in the way. You should be completely detached from the outcome. If I get it O,K.. If I don't get it O.K.. He who cares least generally wins.
Great advice we sometimes forget in the heat of the battle. Might I add that the more leads you have in the hopper, the less vital it is to get them all. Numbers, numbers, numbers! [ Edited by norrist on Date 01/06/2004 ]
Sammy,
You made it sounds like a love story of your life..
What's important is to get a good initial interview that reviles what homeowners needs are, allowing you to cater to them in the way you'll be irresistible. In the same time, you can care less if you make this home run or not because there is another one around the corner... not really like that but emotions are not the best friend of the business. And to agree with other post above, always use "Time is of the essence" clause, which in most cases does help homeowners make up their mind, without the obvious pushup or emphasize on that clause.
Let it just hang there, and be pasivly acknowledged.
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Quote:
On 2004-01-06 21:44, omega1 wrote:
What's important is to get a good initial interview that reviles what homeowners needs are, allowing you to cater to them in the way you'll be irresistible.
Hmmmm. Let's see....
Revile: to assail with bitter abuse.
Off topic... but the icon faces are really cracking me up
No harm intended omega1... but your icon looks like a 70's or 80's throw back.
Very creative icons for some very creative investors.
I really enjoy reading the posts and analyzing the icons to get an idea of who I may be hearing from
I think there is a lot of good advice above, but in a highly competitive market where you are contacting the owner because of a Notice of Default, you may still need to do some convincing. Here are some things you want to help them consider regarding listing and full value:
- Realtors benefit most from higher selling prices.
- Longer selling times diminish their (owner) equity and credit, but not the realtors.
- Fees and penalties compound during this period.
- The longer they hold out, the less likely you will be able to provide them a solution.
It may be helpful to ask them what they think the property is worth, what they owe, the average full price sale period, and the average full price discount. Put that in a formula (it is a good idea to have a ballpark before you get there) and show them that they are better going with you. Good Luck!!!
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