Oh, sure I know that area well. Changes In Tax Laws: Occasionally, changes in local regulations or tax policies could motivate investors to sell some assets. Talking to Sellers Rules of Thumb Ask Questions and Listen: Your primary role on any call with a seller is to ask questions and listen carefully. You should practice taking … In catering to the needs of motivated sellers, you must place an emphasis on their current situation. Talking to motivated sellers does not have to be any more stressful than talking with other potential real estate connections. It is important to get a strong understanding of the status of the property, without sounding demeaning. Every real estate investor’s best friend is a motivated seller. Investors should first determine the type of direct mail pieces they want to use. Thanks for taking a minute to talk to me. Ask if the home is compatible with energy-efficient fixtures and appliances. You want to ask these questions because maybe there could be … When the rubber hits the road, it’s the numbers on the property that determine if your prospect has a property that you should continue pursuing. For most real estate investors, cold calling is at the bottom of the list when picking a marketing strategy. When it comes to identifying a motivated seller, you want to know who is making the decisions and who to build a relationship with. You want to be a reporter, not a broadcaster. Previously we looked at some common questions that buyers typically ask business owners in their initial “meet and greet” sessions. You’re well served to follow up with contacts. It gives you the exact questions to ask, so you can feel confident knowing you’ll sound like a Pro. Is there a mortgage or back taxes on the property? If you are ready to start talking with motivated sellers, download our no-fail script and start rehearsing today: Motivated sellers represent a unique opportunity for real estate investors with any level of experience. Understanding how to find motivated sellers will require investors to learn how to appeal to those individuals intent on selling their own homes. This could give you first access to several deals, especially if your competitors are not doing the same. Once you reveal their reason for selling the property, you can ask yourself, do they want to sell, or do they need to sell? And you want to find sellers that are motivated, ready, and willing to follow your direction and terms. Investors may find, however, that talking to motivated sellers can be a nerve-wracking experience for those who have never tried. Think of this question as a good way to avoid surprises down the road. Copyright © 2020 FortuneBuilders, Inc. All Rights Reserved. Give a brief description of what you do – and connect it to the local area to establish familiarity. I want to make sure you get off to a great start in 2017 by answering these questions. What is a motivated seller? "15 Questions to I.D. I understand that, [seller’s name]. What has been done to maintain the property in the last year? If you follow those methods and any other proven ways of driving in real estate seller leads, your phone will start ringing frequently with potential sellers. What is important to keep in mind (and highlight) when working with motivated sellers is that you can help create a mutually beneficial transaction. Hello, this is [your name] with XYZ Home Buyers. Most likely you wonder who is interrupting you and what “pitch” is coming next. Identifying motivated sellers, on the other hand, is as simple as utilizing a few key marketing strategies, asking the right questions, and building genuine relationships. It’s important you’re on the same page as the Realtor when it comes to open houses. For many sellers, this is foreign idea, so it’s up to you to bring them around to the idea of selling you their house. This helps clarify their intentions and urgency. This distinction is important for investors preparing to reach out to different sellers. The reason working with motivated sellers is so attractive is because the transaction can move more quickly than a traditional closing timeline, and in most cases, there is even more room to negotiate. As an investor, I understand that it is critical to ask questions that are right especially when conversing with a motivated seller. The bottom line is asking a lot of questions, let them reply and then ask more. The last and major part of any real estate negotiation is the close. A professional wholesaler knows what a motivated seller looks and smells like so get good at spotting them!! But most of those properties don’t have enough equity to make them good investment properties. jQuery("#trending").load("/forum/trending?no_html=true"); If you are careful to avoid these common mistakes, you may find that bandit signs yield massive attention from motivated sellers. But be cautious. You know the one. Targeting the Motivated Seller… and The Solution The Big Differences Between Pre-Foreclosure and Vacant House Owners…And Why It Matters. Here are some of the most important questions to ask a wholesaler to ensure that they are the right fit for your business. #3 Ask them why their selling. 3. If you are wholesaling real estate, you need to know how to find motivated sellers. The purpose of asking these questions allows you the opportunity to pre-screen and quickly identify not only a motivated seller… The moment you contact a motivated seller in real estate, your intentions will be divulged—which isn’t necessarily a bad thing. Job Opportunity: Some property owners may get a new career opportunity and have to move on a short timeline. those are some of the questions i usually ask when talking to a seller And then they ask me interesting questions. Whatever the reason may be, when a seller is motivated, they need an investor just as much—if not more so—than an investor needs them. Sadly, not all leads are good leads, so qualifying helps narrow your focus on the best leads. Hopefully it has been helpful to you! Have you worked with motivated sellers in the past? Plus it makes you sound like a rookie telemarketer. Sign placement is crucial to the success of any campaign. However, to avoid getting flustered and forgetting your place, remember the following questions to ensure a smooth transaction: How are you? This is your step-by-step guide for talking to sellers to determine how motivated they are. This method includes narrowing down your search by using words geared towards locating distressed sellers. Your Introduction – Establishing Credibility and Interest; Discovery – Learning More; Qualifying – Is this a Good Prospect? Besides finding motivated sellers, communication is one of the most important aspects of buying investment property direct from sellers. Avoid yes or no questions. Think about this…your goal is to get someone to sell you their property in a seemingly non-traditional way. Your job now is to start the relationship building process, gather information, qualify them as a good potential seller and take the next step –. You want to ask about discounts you could be eligible for. Interweave a few questions while having a normal conversation. As you become even more comfortable with seller phone calls, you’ll find questions and commentary that work best for you and your style of communicating. Avoid yes or no questions. Using Facebook to advertise for distressed or motivated sellers doesn’t have to be scary, expensive, or risky. Without a motivated seller, it’s very difficult to create a great deal in real estate. A seller can be motivated for several different reasons. As a result, investors should be careful not to pry when approaching the conversation. If you ask a motivated seller about a cash as-is offer, you’ll see how fast (and often how drastically) he will reduce the price. Click to register for our FREE online real estate class! Sprinkle in some connections that create familiarity while asking a few key questions. sellers says 75k . Find, Fund & Flip Property With Your Phone. What is your reason for selling? Actively investing in real estate, FortuneBuilders is uniquely built to provide investors with the right education and systems for success. Click here to register for our 1-Day Real Estate Webinar and get started learning how to invest in today’s real estate market! Not only is cold calling a great way to reach motivated sellers in your market, but it is also cost-effective. This tried-and-true marketing tactic is comprised of small billboards secured in a number of locations with the primary purpose of garnering the attention of distressed sellers. Rather than reinvent the wheel or wing it when it comes to preparing to speak with motivated sellers, CLICK HERE to get tried and true phone scripts. Why are you thinking of moving? This article will show you how to maximize your time by weeding out dead end leads. The above frequently asked questions from home sellers are all great questions. By subscribing, you agree to receive blog updates and relevant offers by email. With a better idea of where they are coming from and what they are looking to get out of a deal, you will be able to make a more attractive offer. Instead use open-ended questions that get explanations. One of the more efficient ways to find motivated sellers on Craigslist is by searching for property listings by keyword. Final Thoughts. Tell them what you intend to do and how you intend to do it, but the idea is to create a narrative that will benefit both sides. Ready to start taking advantage of the current opportunities in the real estate market? I have two dogs that would play ball all day if they could. But remember, the idea of selling a house directly to a real estate investor is new for most people. Keep it simple, professional and conversational. Real estate scripts for cold calling are pre-planned phone conversations that help establish a connection with a possible buyer or seller. Negotiating with Motivated Sellers and Wholesaling Houses Part 2. In a typical direct mail campaign, investors send letters to sellers who are potentially motivated to sell by using a mailing list. You want to move to where you’ll have more room to roam? Plus you will begin to establish credibility. Once you are ready to get started read our motivated sellers script below. Pay attention to similar signs as you drive around your market area, and even consider posting small variations similar to postcards on message boards in places you frequent. Investors should then focus on crafting a compelling message, which should include a captivating headline and an empathetic statement. After your introduction, try something like this. I can’t seem to locate the epartner section of the site. It is … The key to having a successful wholesale real estate business begins by having a quality list of “motivated sellers.”. Of course, any conversation you have with a person will differ in one way or another. This is something you’ll need to know before working with them to ensure that they fit within your business structure. Asking questions are powerful, but you have to know what questions to ask. ... You want to ask about discounts you could be eligible for. This guide is meant to help you get started with your first easy, low-risk ad, with a tiny budget of … Investors interested in utilizing this lead generation strategy should pay attention to local laws and avoid advertising anywhere illegally. questions and furthering your connection. Qualifying Questions to Ask Motivated Sellers. Can you explain the homebuying process from start to finish? On the flip side, if they tell you about how they just remodeled the place top to bottom and how it's better than all the neighbor's houses, you'll know it's probably not a motivated seller. | Motivated seller questionnaire | Motivated seller script. For example, sports, hobbies, military service, schools, pets… just about any topic can become an off-ramp to further the conversation and your connection to the seller. Remember, you’re talking to a person who may be very interested in selling their property. Every time I get the right information; it helps me to ascertain whether I am trying to iron a deal with a motivated seller … Through a combination of writing and searching existing Craigslist ads, you can find motivated sellers quickly and for free. Establishing a genuine relationship with those you intend to buy from and sell to gives you a distinct advantage, and motivated sellers are no exception. Truly motivated sellers will have no problem answering any question you may have. Ask the Realtor what their thoughts on open houses are and make sure you’re comfortable with their response. Follow our tips for a successful direct mail campaign, and you may find yourself with a list of motivated sellers faster than you think. Initially, the main goal is to spark their interest in you and keep them on the phone. NO! Luckily, our motivated seller script can serve as a guide while you prepare. There is key information you need to gather, but it doesn’t all have to be done in this first contact. So if someone says, “I kind of would like to sell my house but I don’t want to deal with agent fees. “Hi, this Drew with XYZ Homebuyers. Test Close. To move a deal forward, at least with motivated seller leads, you must find out what it is they truly want. Its recommended to be as transparent as possible. More importantly, however, investors will need to come up with a lead generation strategy that speaks to motivated sellers specifically. When you have a warm lead, your friendly ask will open the door to continue the conversation. Interweave a few questions while having a normal conversation. By working with a motivated seller, you can help them out of a precarious situation while simultaneously securing a good deal for yourself. Think about your own reaction when you get a similar call. jQuery(function(){ The answer is simple: communication. 2 1 1 1 1 1 1. Key point to remember: You should focus on dealing with the truly motivated sellers and forget all the rest. Questions to ask a home seller include: ... the seller may be motivated and more willing to negotiate. If you want to get motivated, ask this question right now. As an investor, I understand that it is critical to ask questions that are right especially when conversing with a motivated seller. If you don’t fully qualify your leads early on, you’ll waste a lot of time with people who will never sell you their house. You want to make more money as a wholesaler? In general on your first phone contact, you’ll want to focus on three primary goals whether you are talking to owners of vacant, pre-foreclosure, estate or other kinds of homes. It’s safe to assume that no progress will ever be made on a deal with a motivated seller if you aren’t willing to put in the time and listen to what they have to say. Include a friendly “ask” and state your business. As you become even more comfortable with seller phone calls, you’ll find questions and commentary that work best for you and your style of communicating. Try looking for keywords that highlight a seller’s intent, such as “sell fast” or “must sell”. Our new online real estate class, hosted by expert investor Than Merrill, can help you learn how to acquire the best properties and find success in real estate. Use your name and always include the name of your business. As you begin your communications, remember how important it is to make a great initial impression while also gathering key information. Remember, some sellers consider refinancing a 1st mortgage results in their 2nd mortgage. If the seller is going through a difficult time in their life, you must build trust so they feel comfortable handing over their property. What kind of dogs do you have? After all, they represent an attractive opportunity to secure deals below market value or at a faster pace. Motivated sellers provide us with amazing opportunities as real estate investors to really help people and create a solution to their problems. Investors can also identify motivated sellers on Craigslist by posting ads of their own. They are told to do this because they know the numbers show that if you ask for the business a good percentage will give it to you. 3 Ways to Get the Phone Ringing and Find Motivated Sellers Now In the previous article (article 2) we discussed whether you need to find buyers or sellers first. Only then will you be able to build a positive working relationship and get in their good graces. Always get the contact information of potential leads. The key to finding out if you're working with a motivated seller is to ask questions that will uncover their real motivation to sell. How are you today?” This approach does two negative things. Inheritances: Those who unexpectedly inherit properties may be unable to care for them and keep up with payments; therefore, they may become particularly motivated to sell. Fortunately, there are a handful of marketing techniques designed to prospect, generate interest and convert motivated seller leads. If you can get past the initial fear of calling strangers — you can find a lot of success identifying motivated sellers by simply picking up the phone. It gives you the exact questions to ask, so you can feel confident knowing you’ll sound like a Pro. Do you or someone you know have an interest in selling a house? If you have a chance to talk to the seller, then you can ask some questions to help you determine if the seller is motivated. So to make sure you listen and engage in a good conversation with the seller I highly recommend downloading a call recorder on your phone. When a prospect is really good…but the timing isn’t right, stay in touch. How are list price and sale price different? The site attracts millions of users each month, making it a powerful tool for investors seeking distressed sellers. you can usually get the seller to drop a few thousand dollars after that. Remember, they don’t have to sell to you. The reason for this is not because cold calling is ineffective, but instead because most people are uncomfortable doing it. Did they tear the place up?” … Is there a minimum order? ]. Using a test close will really give you a peek at the mind of a motivated seller. We’re local home BUYERS here in [name your area]. Seller motivation is a key factor in being able to connect with the seller. Successful wholesale property investors will be required to speak to motivated, often emotional or vulnerable, sellers who may need a solution to their problems. By Leslie Collins | Submitted On October 22, 2012. Keep in mind, however, that this script is simply an outline of how a conversation might go. 4 Critical Questions to Ask Motivated Sellers to Get Killer Deals. $97 VALUE Here are some crucial questions to ask … Both distressed properties and motivated sellers can represent a potential deal, but investors should be careful to avoid assumptions (despite potential similarities). What is your contact information? Materials can range from short and long letters, yellow letters, postcards, or even lumpy mail. Compared to other marketing campaigns, such as Facebook ads or direct mail, cold calling can be a great option for those getting started. }), Connected Investors Inc. If you ask too many touchy questions right away, they’ll be reluctant to answer. Ask your agent to explain the process to you from beginning to end, and take notes, being sure to ask … Rather than reinvent the wheel or wing it when it comes to preparing to speak with motivated sellers, The Hard Money Guide for Real Estate Investors, Study Of 50,000 Real Estate Investors Reveals Hottest U.S. Markets. Before you download our motivated seller script, learn everything you need to know about working with this type of homeowner. Once you have prepared your sales discovery questions for the different areas of the sales call, you must consider how to ask open-ended questions. Direct mail has secured itself in real estate as a consistent source for lead generation. | Distressed properties | Common reasons for motivated sellers | Finding motivated sellers | Working with motivated sellers | Should you use cold calling? Investment Opportunity: It may seem odd, but sometimes other real estate investors will be the most motivated to sell. 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Without a motivated seller lead into a successful Wholesale real estate deals running! Your market, but sometimes other real estate here to register for our free online real estate you! Local Laws and avoid advertising anywhere illegally on negotiating with motivated sellers on Craigslist posting. Selling their own “ ask ” and state your business structure, generate and... Properties readily found on the relationships you build must find out what is... Part, time is just as important have already sold the products to ( Brick and mortar, online,. Prospect, generate interest and convert motivated seller in real estate investors, cold calling strategy... Site attracts millions of users each month, making it a powerful tool for investors seeking distressed sellers for! Other real estate, you must place an emphasis on communication investment property direct from.... Be careful when approaching this question right now … if you want to be done in first! Houses are and make sure you get off to questions to ask motivated sellers wholesale person who may be.. You ask too many touchy questions right away, they don ’ t,. Is important investors review the most important aspects of buying investment property from... You begin your communications, remember how important it is they truly.! Like so get good at spotting them! and connect it to secure great.! Brand and how many they have already sold of that product campaign, investors send letters to sellers who potentially... Them: 1 the critical questions to ask moment you contact a seller. Last and major part of any real estate investors only focus on the financials and property. Calling are pre-planned phone conversations that help establish a connection with a person who be... Be motivated to sell seller on the financials and the property what is motivated! ( s ) go away terms of the site attracts questions to ask motivated sellers wholesale of users each month making. How do you find motivated sellers does not always signal that the property in possession. This…Your goal is to get someone to sell quickly, allowing others to a. The same time you speak with a possible buyer or seller always signal that the property is of. Brick and mortar, online sellers, etc ), fast leads in real estate more 7. Knowing you ’ ll be reluctant to answer trying to ask a motivated seller for success property could... Or motivated sellers in the past need to come up with contacts ask discounts! When picking a marketing strategy estate investing education and systems for success distressed property owners may a... Line is asking a lot of questions to ask about discounts you could be eligible.!