September 3, 2013 in Investing In Real Estate
Chris has adopted one of my favorite strategies for dealing with unmotivated sellers, which is to completely ignore the fact that they are unmotivated at this time. Like me, he has also come to know that time and circumstances change all things. Today's completely unmotivated seller, may become very motivated at a later point in time. So What's the lesson here? Keep marketing to those folks.
Some of you know “Sharon's Rule” where that is concerned. I only quit marketing to those people on my list if I buy the house, someone else buys the house, or they ask to be removed from my list. That's it!
You can read Chris' post below…
When dealing with inbound seller calls, I try not to be too picky in terms of who I set an appointment with. If I have no appointments booked for the day, I will most likely take a look at the property unless it’s clear from the phone call there is absolutely no potential in the lead. If nothing else, it allows me to practice my rapport building. As long as there seems to be enough equity and there is potential to work together I will take a look. Sometimes some of the inbound calls I receive seem quite unmotivated at first glance. Many of you at this point would discard the lead and go on to the next one. However this can be deceptive and I will walk you through why.
Let’s take a look at a lead from back in April. I have various lines in the water when it comes to filling my deal pipeline. One of which is absentee owners. The seller contacted me off a postcard mailer I had sent him. The property had been vacant for several months and needed some rehab, mostly cosmetic work but some minor foundation as well. Let me make this clear, from the phone call the seller seemed completely unmotivated, but I booked the appointment anyways.
Making the Offer
I made the offer at the property, and the seller didn’t seem too interested and wanted a few days to think it over. I called him several days later, and the seller didn’t seem even slightly interested with my offer. Which leads me to my next point to digress a little.
Show them that you are offering them a fair price based on the amount of work the house needs, the comps in the area etc. And that you are not pulling this number out of thin air and trying to take advantage of them. Educate your sellers if they need some hand holding.
Begin the Follow-Up Process
Even though the potential in this deal for all intents and purposes seemed dead, I scheduled to give him a call every month or so. I would just give him a brief call stating something to the effect “Hey, this is Chris. I met with you at your property on 123 Green Street just wanted to call and check in to see if you might be interested in selling your property”.
The first couple months of doing this, he politely said no. Until…
This time when I called back the seller, I could sense a distinct tension in his voice. Something had happened; nothing major like an illness or facing foreclosure. I will keep the details private, but the point is “no” doesn’t mean no forever. As time flows, circumstances will change, and that can turn a firm “no” into a excited and under contract “yes”.
Remember the first time I got in touch with this seller was back in April. How many of you would have even booked the appointment? Much less, how many of you would have continued to follow up after you made the offer? Most of you would have given up after one month. It took 3 months later for me to get the property under contract.
No Doesn’t Mean “No” Forever
In my business here in the Dallas – Fort Worth area I see this happen quite regularly, and it allows me to beat my competition in a very competitive market. Very few other investors bother to follow up. I would venture to say more than 70% of the homes I get under contract are from follow up. If there is one “secret” in this business besides being consistent and persistent, its follow-up. Don’t ever underestimate it.
Special thanks to Sharon for allowing me the honor and privilege of guest posting on her blog. Thanks for reading and if you have any questions feel free to leave them in the comments below and I will do my best to address them.
My thanks to Chris Feltus for this insightful post. If you have a home to sell in the Dallas – Fort Worth area, be sure to stop by Chris' site “Feltus Family Homes”. Chris can help you with your problem property today.
Learn how to dial up your negotiation skills a notch and “Change the Seller's Expectations“ here ….
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Chris discovered his passion for real estate early on working for a land developer. His primary focus in real estate at this time is wholesaling. When not involved in real estate he enjoys spending time with his wife and painting.