Investing in real estate is about location. It is a numbers game. You make money when you buy. These statements are valid, but they don’t convey the whole meaning. It might be true that real estate is a location business, but it’s more than that. Any business is a relationship business.
A transaction based on trust, reputation, and honesty. An aim to deliver value, all day along to our customers. That’s a real business and only when you reach this point, you start seeing success. Investing in construction or land is no different. This investment gives you the chance to make a significant difference in the lives of a family. You are offering a residence. It’s time to see the business from a new perspective. When you do that, your entire marketing strategy changes. That includes sending offers to motivated sellers so that you can acquire a property at a reasonable price.
A common strategy for most investors is to send out multiple offers. It is a simple message sent out in bulk to potential customers. While this scheme is useful to some extent, it doesn’t generate expected results. It doesn’t build a relationship with the seller.
As an investor, you are sending out messages so you can help a seller, and also so you could find good deals. Sellers also have their reasons. It’s critical to understand their motivation so you can offer them the right value.
A motivated seller is looking for a fair price, a hassle-free process, and a quick closing. Don’t send a lowball offer because that’s your budget. Research the motivation of the seller and come up with a win-win solution for all parties. If you cannot exceed your budget, what else can you do for the seller? Maybe, you can waive the contingencies or pay for their closing costs, or arrange a moving service for them.
Pricing alone is not essential for the seller. Information is important. A seller in the pre-foreclosure phase wants to sell their house in days. They don’t have months. They are counting hours. Will you be able to close on their timeline? Can you arrange cash to save the seller’s credit history?
Many investors send an offer out-of-blue. You don’t get a second chance. Your initial offer is your lasting impression, so make it a good one. Back your price with data. The sellers need to know the numbers. Without research, it looks like you’re not interested in the deal. Explain how you can help the seller. Open the line of communication and keep the seller informed throughout the process.
Do you know why banks accept a short sale? Because sometimes, a short deal is a less expensive option compared to a foreclosure. Lenders can save time and money by allowing a short sale. The same is the scenario with motivated sellers.
They need to save both time & money, and a cash buyer can provide the required solution. When you write your offer, make it easy for the seller to accept it. You are the local expert, so explain all legal terms in an easy-to-read manner. How are you going to finance the property?
Give all the ways you can provide funds to the seller. Please give a realistic timeline to the seller because they are relying on you. Be flexible with your terms, and do your research. Sellers might want to negotiate with you. In that case, research helps you lay a foundation for negotiations. You don’t have to send low-ball offers, but you also cannot exceed the budget. Determine the right price for the property, and offer the highest value to the seller. That’ll help you close more deals, more often.