I am planning on putting out some bandit signs this weekend and I am thinking of putting a referral fee on it like this:
We Buy Houses
555-555-5555
$500 Referral Fee
Has anyone tried this before? I cannot figure out if this is a great or a terrible idea. I would love to hear some feedback. Also, I am not a licensed real estate agent or broker, so I don’t think I will be breaking any laws offering a referral fee. I am in VA.
I wouldn’t do that.
Stick with one message per sign. “You Buy Houses” (fast, quick, for cash, today, in 3 days, etc.). Otherwise, you’re muddling your marketing message with “something” not about selling fast, quick, for cash, today, in 3 days, etc.
If you want referrals, put up another sign that’s only about referrals.
You could mention something about referrals in your outgoing messages …after you’ve delivered on the first bit of information about “buying houses fast”
BTW, nobody cares that YOU buy houses. They only care what the benefit is to them to call you. What is “that benefit?”
Do you buy ugly houses? Do you buy fast? Do you pay “fair” prices? Do you close in 48 hours? Do you only buy from desperate, motivated, dumb butts who write with crayons? (That might not sound good on a bandit sign, but…)
What do you do that highlights the benefit of calling you? That’s a better question than about about mentioning referral fees in my bandit signs. Just saying.
:beer
Thanks, javipa. I think you make a great point and my signs will be better because of it.
One message per sign, and clearly state the benefit of calling. Got it.
Well, probably you can add more on it. Other than just the “We buy Houses” … probably you can add something more to attract online users or people to go to your website or your business and see why would they need to check out your service or your products.
I am 100% a fan of just saying WE BUY HOUSES and your number. I see so many people trying to reinvent the wheel and it makes no sense. Stick with what works. Believe it or not I saw a sign last week that said" I’ll be your big poppa, sell me your house". I do however use the referral statement on vehicle lettering and business cards.
All the sellers is interesting in is that you are a CASH buyer not someone wanting to do assignment.
Wholesalers are finding deals that aren’t in the MLS, often through bandit signs and other marketing techniques. If they’re in the MLS then they’re typically being offered at retail prices, which wouldn’t be interesting to investors. Keep in mind also that most agents are not brokers but must be sponsored by brokers and so are looking at closer to 1-2% after commission splits.
The best way to find deals that are not listed on the MLS is work with a real estate agent and don’t ask the agent to work for free because you are not in the business of working for free.
I just started with postcards with the “We buy houses” message on the front and the referral fee message on the back. I will let you guys know how that turns out.
That is very good your little sign say “We buy houses”. Now do you have cash money to buy when a deal come along or you going to tell the seller oh I want to put it under contract base on contingency that I can find someone to take it. Then a smart seller would say you are making false statements that “We buy houses”.
I do have financing lined up to buy houses that fall within my buying criteria. If the house is not what I am looking for, I wholesale it. All explained up front to the homeseller. Also, I keep it real with a seller on the likelihood of getting a deal assigned. I do not waste their time or mine on deals that won’t work. I either have a solution that fixes their real estate problem or I don’t. I try not to make promises that I can’t deliver on.
Always be up front with the seller and tell them you want to wholesale their property.
My understanding was that “We buy houses” is a message commonly used by wholesalers to attract motivated sellers to find deals for wholesaling. I thought this was common practice and not considered unethical. Are you saying sending out signs/letters/postcards that say “We buy houses” as a wholesaler is less than ethical? Is there a different message that would be more ethical to use?
You imply, perhaps unwittingly, that I am somehow and/or sometimes not upfront with a homeowner about my intentions regarding their property.
I did not imply you were not upfront with the home owner. Lot of the wholesalers will not tell the home owners they are resellers.