November 4, 2015 in Investing In Real Estate
Have you noticed that things don’t quite work like they used to when it comes to marketing? It seemed pretty simple before. The process was pretty straight forward but not anymore. Today we need to understand how to woo savvy sellers.
We have always marketed directly to sellers. In our marketing we told them what we did and how we could help solve their problem. It was a process we could repeat over and over, month after month.
When they were ready to sell, they took us up on our offer. They gave us a call because we had introduced ourselves to them through our marketing. Here is the big difference –
Previously WE had control over the sales process.
At least we did before the internet came along. Even then things really didn’t change overnight. It took a while for sellers to realize that they held all of the power. They no longer relied on us for information like they had in the past. They could find all the information they needed online.
The Old Way of Marketing
In the past all of our marketing efforts were directed toward motivated sellers and their problem. That problem almost always involved some type of financial difficulty. As investors, we were pretty good at telling them how we were the solution” to their problem.
It was a pretty straight forward process whether we were doing this with our direct mail campaigns, our ads, or some other marketing strategies. Our job was to identify these potentially motivated sellers and offer them a solution.
The Way Sellers Make Decisions Today
When today’s seller has a problem that leads them to sell their property, their thought process is quite different than before. Once they come to what is often a painful realization that they must sell their property, they get to work finding a solution. They are very proactive. I have found that there are several distinct steps to their decision making process.
The Internet is King
In the past they would call us first. They would respond to our marketing as their first step. Our role was much like that of any sales person. Investors were there to educate these sellers about their particular situation and offer solutions. We were their solution.
Think about situations where the process involved a purchase like furniture or automobiles. There would almost immediately be a sales person involved to help them make a decision. Sales people were important in every buying process. They had the information the buyer needed. That is the biggest change in this whole process today. Motivated sellers don’t look for help until they have done their due diligence. The middleman (AKA the investor) has been all but eliminated in those early stages of the process.
Getting on the Seller’s Short List
Once the seller has done their due diligence and they feel they have gathered the required information, the next step for the seller is to create a “short list” of potential real estate investors to call.
Think about this for a minute; before motivated sellers even think about calling us for help, they have done their research; they have evaluated their options, and they feel like they have the information needed to take the next step. They have almost certainly looked us up on the internet. Some savvy sellers may have even pulled to together some “supporting documents” AKA comps to justify the price they think they should get for their property.
Notice that they haven’t called anyone yet.
The million dollar question at this point is, “Have you made the cut? Are you on their short list when it comes the point when they are to interviewing investors? That’s right; interviewing investors so they can choose the one they would like to work with. Buy this time they have picked out more than one person to invite to come take a look at their house.
So How Do You Do That?
The next question is what do YOU have to do to make the cut?
In part 2 of this article I will tell you exactly what they are looking for, and what steps you need to take to be on their short list. To read part 2 of the article just CLICK HERE….
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