Spitz noted that investors operating on a large scale must not only understand this process themselves, but teach their employees as well.
Dallas, Texas – One of the best ways to generate solid lead generation for your real estate investing business is to get out “in the field” and talk to sellers directly. Especially in highly competitive real estate markets like Dallas-Fort Worth (DFW), which recently hosted the Think Realty National Conference & Expo on February 24-25, 2018, an investor willing to speak directly with sellers and deal with them sympathetically as well as with the “bottom line” in mind may beat the competition for the best properties at the best prices.
Brian Spitz, owner of Big State Home Buyers, is an expert in seller psychology and has been leveraging these insights in his Houston-based real estate investing business for more than 10 years. At the Dallas event, he explained to students that the key to working effectively with sellers is not always offering top dollar, but instead understanding their motivations for selling. “I start with two questions: Why are you selling, and who owns the house?” he said. “This helps me start to understand what will motivate the seller to sell and if they have the option of doing so.”
Spitz noted that investors operating on a large scale must not only understand this process themselves, but teach their employees as well. “Anything you can do to educate the people you work with will put you ahead of your competition,” he said. Spitz went on to explain most motivated sellers make decisions about whether to sell and for how much based on what offer will bring them the most “relief” in their housing-related problem. “Always remember, the seller is experiencing something prior to the phone call [they make to you], some sort of problem that led them to seek relief,” he said. Examples include the need to pay off a debt, resolve a divorce, work things out with co-heirs of an estate, resolve family conflicts, and pay off taxes.
“Ask yourself, ‘What represents relief?’ after the seller tells you why they are selling,” Spitz said. “Then, prequalify the seller. Can they sell it? Do they really need to sell it? Do they have enough equity to sell at the price you need, and they need?” Spitz added, “I’m always evaluating the deal independently of what the seller is saying to determine if I can meet the need that will give relief.”
Get more insights on seller psychology and real estate lead generation as well as read more event coverage at www.thinkrealty.com, and don’t miss your next opportunity to attend a Think Realty event in person.