Sellers come in various shapes and sizes. Some simply want to sell, such as a family wanting to move up or down in the same area. Others, however, need to sell, such as an owner facing foreclosure.
Then thereās the matter of distress. Some properties are distressed, such as the result of a fire. Some owners are distressed, such as in a divorce. Other owners and properties are just fine, trying to implement a positive change for the future.
These distinctions are mentioned because they are pertinent to how sellers will be found, and how sellers need to be successfully approached by marketing and then in negotiation.
WholesalersĀ
Wholesalers NEED to sell! They are people who put properties under contract with owners, then attempt to sell the contract. In essence, they are surrogate sellers. Of all the sellers described here, wholesalers are the most highly motivated because their contract will expire in 30 or 60 days. Then they will make nothing for their work, lose the modest deposit they put up, and risk the anger of the dissatisfied property owner.
Usually, wholesalers send a āblastā by e-mail, text, or social media platform to their āBuyers List.ā For additional marketing exposure, and to add to their list of buyers, they also advertise on Craigslist, and sometimes additional classified advertising. So, Craigslist is the best, least expensive source of highly motivated leads.
FSBOās
āFor Sale by Ownersā (FSBOās) are sellers who WANT to sell, but donāt want to use an agent or broker to do it. This works pretty well for FSBOās in strong markets. In weaker markets, they usually list the property with a RealtorĀ® eventually, so it can be placed on the Multiple Listing Service (MLS). Most FSBO sellers are fairly well educated, and therefore are confident about what they are trying to do.
FSBOās usually employ several advertising methods. They advertise on Zillow, Craigslist, FSBO.com, Owners.com, among others, along with putting a for sale sign in the lawn. The key with FSBOās is to respond to their ad, and gather as much information as possible. Ask for information to be e-mailed to you. Ask lots of questions to ādraw them out,ā and create a positive impression with them. Do not brag or be assertive. Just be polite and inquisitive. And NEVER make a verbal offer over the phone because: a) You donāt know enough yet, and b) in real estate an offer is not legitimate unless it is in writing and accompanied by an earnest money deposit (EMD).
Expired MLS ListingsĀ
Most sellers who list their property with a RealtorĀ® to go on the MLS WANT to sell. When the listing expires unsold, they either make other plans (e.g., refinance or rent), or they are more motivated to sell. Oftentimes, they will reduce the price, sometimes substantially, due to the time they have lost.Ā
Expired listings are best found by cultivating a RealtorĀ® to provide a list every so often. If the property is owner-occupied, the phone number is often on the listing. If not, you still have the address and can write or drop by. If the property is not owner-occupied, look up the property tax records to see the address where the tax bill is sent. A letter should reach the owner or their representative.
āBird Dogsā
Some hunters have trained dogs to find pheasant and grouse, among other birds. Perhaps you have heard of a pointer. In real estate, ābird dogsā are people āout in the fieldā who are paid when they find and refer a seller who closes a deal, an example is a postal or package delivery person.
Creating a roster of ābird dogsā first involves making a list of the possibilities. Then produce an attractive one-page flyer with your proposition and instructions. Give this to your prospective ābird dogsā with a supply of your business cards.Ā
Driving for Dollars
This low-cost method involves driving neighborhoods for vacant and ājunkyā properties. Often low-income areas are more productive with this method for reasons that are fairly intuitive. Itās good practice to take a photo to remind yourself, and you could also dictate comments into a pocket recorder.
Owners can be located from property tax records, talking with neighbors, or posting some flyers on the property, if it is vacant. As a last resort, a āskip traceā company such as Lexis Nexus or Trans Unionās TLo can be used. Costs should be only a few dollars per search.
The five methods described here are meant to be not only the least costly approaches to finding sellers, but also highly productive because they address the sellerās need or want to sell.
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