I am starting to call alot of potential sellers and was wondering what key points you guys cover when qualifing a seller over the phone.
From what I’m reading, the no.1 point to cover is –
If they’re not motivated, it’s a waste of your time.
I agree completely. Once you determine they are motivated what other questions do you want to ask?
Check out this link - I think it’s a good idea of how to be on the phone.
Question number one: You’re calling “potential” sellers? What exactly is a potential seller and why are you calling them.
If you want to deal with sellers directly the best thing that you can do is advertise the “we buy houses” are similiar and then answer your phone.
Yes, I said answer the phone (Sorry Immy, but I don’t believe in the voicemail junk of the article that you urled).
Let me let you in on a little secret. If a seller calls a we buy houses ad, they’re ready to sell. IF they are really, really ready to sell (ie, the motivated seller that everyone covets so much), they probably are not going to leave a message. And even if they do, it probably won’t matter because what they are going to do is pick up the phone and call the next “we buy” or similiar and sell to the first person that takes the time to hear them. Answer the phone.
Also, I hear all the time “this is how to qualify a seller over the phone.” Little secret number two. It ain’t going to happen most of the time, and especially on the first phone call. You’ll lose more deals than get by screening callers to “qualify” their motivation level.
If you’re going to cold call sellers, then I recommend that you do something similiar to what a fellow investors does.
He calls all of the FSBOs in the area that he’s interested and gets an address. He does a quick evaluation of what the property may be worth (FMV) and then he calls the sellers back and makes an offer over the phone, a very low offer I might add. 98 out of 100 are rejected. He follows up with postcards/mail with the offer. Again 98 of 100 of those rejected. He does this every month on average. That’s 4 properties a month, btw.
IF they are really, really ready to sell (ie, the motivated seller that everyone covets so much), they probably are not going to leave a message.
Interesting. My very first call from a seller off one of my signs was both highly motivated and left a message. I think a lot has to do with the availability of investors in the area, though. If a motivated seller has access to a lot of “we buy houses” advertising, they can pick-n-choose. But if they only see your bandit sign and no other advertising, whether you answer the call or opt for them to leave a message won’t make a huge difference as they will leave a message anyway.