I wanted to get some opinions on contacting sellers - I’ve done lots of research on what information to get from sellers and there seems to be several ways to do this. My question is, if I’m calling a seller, is it more beneficial to ask the qualifying questions first and then arrange to see the property, or, is it better just to do as much research on the property first, work some numbers (ARV, possible offer), call the seller to setup a time to see the property and then ask qualifying questions. I just want to get some opinions and reasoning why do it one way or the other. Thanks!
Hi,
Operating as a wholesaler it is important to buy from multiple sources including short sales, REO's, auction properties (Both court house and private like REDC), divorce forced sales, inheritance, loss of job, health problems, etc.
You probable want to advertise and then respond to potential sellers that answer your ad, I pre-qualify potential sellers by asking a series of questions to get at there motivation and what there expectations and needs are? I get all the basic information on the property including address, size, beds and baths, condition, what’s owed, how long they have owned it, etc.
If all there answers sound good and while I am talking on the phone I will start looking at FMV, area, school district, desireability, do I have people looking for properties in that area, etc.
If everything makes sense I will make an appointment to go out and meet the seller and view the property! Once I get off the phone I will use all my sources to pull together what I need to know FMV or ARV, once I see the property I make assessments as I walk through in my head of the dollar amounts I estimate in repairs, when were done I actually will start first by asking seller what he’s going to do with the money once he sells the place, and I will use this information as I explain my position on having to deal with repairs, I have to pay realtor fee’s, closing cost’s, carrying cost’s, pull permits, update insulation, replace components and prepare to resell!
But what I am really saying is "I am going to save you from all this and allow you to leave next week for the vacation, buy that new sail boat or car, and start living life, I am going to make all there problems disappear if they except my offer! (I always carry contracts with me and do a contract right on the spot if were in agreement to terms and conditions of a deal)
Now if the property does not make sense when you pre-qualify them, then pass to the next one and save your time and effort for the next one!
To be successful you have to work all the angles, you have to work smart, not hard! There are lot’s of homes on the market offered as bank owned REO’s that are available right now! But you may have to make 15, 20 or 30 offers a week to get one property excepted! Start a buyers list but seperate it into 2 sections “Investors and Mr. and Mrs Owner Occupied Home Buyer”!
If you can find the deals that your buyers desire you will do great! Screen the buyers, what are they looking for? In what area? At what price? Do they mind repairs? etc, etc, etc!!!
There really is no wrong way or right way, one way may work this week with that group of buyers, and one way (different) may work with buyers the next week! Be flexible and willing to work all the angles!
GR
GR,
Awesome explanation! Thank you for taking the time to break that down for me. I was getting hung up on the approach between sellers contacting me vs. me contacting the sellers. Thanks again!!!
Hi,
You actually can respond to properties advertised as FSBO (For Sale by Owner) but there is one primary difference, a seller who is actively marketing there property probable already has a number in there head they want for there property.
By marketing they are indicating they are willing to take time to sell! As to a seller that needs out fast and calls a buyer advertising to potentially take a problem property off there hands!
There is a big difference and your likely to negotiate for a pristine property something 30% average below FMV with a caller to your ad, but your not likely to convince a seller who is advertising and marketing to get there price!
GR
Prescreen over the phone, and not in the home. Before you leave your house there needs to be some basis for doing business. I would figure out the ARV and MAO before calling. That way, once you find out what they want for the house you’ll know if there’s even a reason to leave home.