You know this business involves different types of properties… and markets… and strategies…
But did you know there are also different types of sellers?
And you need to know how to handle each one of them:
-
Those who want to sell
-
Those who need to sell
-
Those who HAVE to sell
See, just because a seller calls you about selling their property doesn’t mean they are ready to pull the trigger.
So, in today’s lesson, Cody Sperber here, to simplify this potential confusion by explaining each type of seller.
1. Want to Sell
This seller is in the first stages and has called you about selling their property.
But, they’re really not ready. (Yet.)
See, these homeowners – those who simply want to sell – likely don’t have enough financial motivation to make them sell.
And, because math, you won’t be able to offer a big enough discount to make it make sense to you as the investor.
But, don’t toss the lead. No, sir.
What I do with these ‘dead’ leads is send follow-up emails every so often to remind them that I’m here.
Why?
Because their world or their lives or their circumstance might change in the future. Something may happen to turn that prospect into a seller who is ready...
And I want to be their 1st (and hopefully) only phone call when that happens.
2. Need to Sell
This homeowner is a definite step up from the ‘want’ seller, but they still might not have enough financial motivation to sell to you at an extreme or significant discount.
But, if you put your thinking cap on and get creative, you might be able to make it work…
What does that mean?
Maybe you look into:
-
lease options
-
sandwich lease options
-
subject-to transactions
-
owner-carry backs
With these strategies, you could offer a little bit more and still come out with a profit.
3. Have to Sell
This is the homeowner you want to work with… they absolutely must sell. They have no other options…
They’re having significant financial problems, which means they need cash asap. And that’s where you come in.
Make this seller an all-cash offer and buy their property at a significant discount.
BOOM!
Make the Best Offers
See, when you can recognize, identify and understand these 3 types of sellers – you’ll be better prepared to make the right offers, or none at all and simply follow up.
Remember that figuring out the type of seller will help you decide whether you make an all-cash offer or propose creative-terms offers.
It’s all about helping solve their problem and maximizing your profit potential.
Say Something
Tell me how you’ve handled these different types of sellers in the comments section below.
Cody Sperber
is founder and CEO of www.CleverInvestor.com. He's successfully closed many different types of real estate transactions including wholesale deals, short sales, multi-unit, subject to, lease options and my own proprietary investing strategy, the Reverse Short Sale. As a new investor he quickly gained a huge competitive advantage by mastering online lead generation, building one of the most successful real estate investing firms in the Arizona market. His companies have bought and sold hundreds of millions in properties and closed hundreds of real estate transactions. Before real estate, Cody served in the Navy and attended Arizona State, and he is now married to his best friend and has two beautiful children (Hudson and Brynlee).