There might be no more valuable skill than understanding how to locate motivated sellers if you wish to be an excellent real estate investor. It may not be talent, capital smart city, or personality that separates the distressed investor from the top redeveloper but rather a framework for locating motivated sellers. Suppose you don’t have a reliable source of motivated seller leads.
In that case, you’ll waste so much time trying to persuade sellers that selling their home is a wise option rather than negotiating with sellers who are eager to close a deal. A motivated seller in real estate is someone determined to get out of a home they own, as the name implies. When a homeowner is encouraged, they can sell for much less than the market price or deliver customized terms such as no down payment or no interest.
Following are some tips that you can follow to find motivated sellers:
1. Locate the List
“The money is in the list, however for investors who want to improve one’s home selling targeting, it’s mostly about choosing the appropriate database of motivated sellers and then giving them marketing materials, usually in the form of email marketing which inspires them to contact you or the team.
There are various lists to choose from, but it’s typically better, to begin with, a few and expands from there. Here are some examples of different types of motivated seller lead lists you might buy and market to:
- Owners who are not present
- Landlords from out of state
- People who own their homes outright
- Lien-ridden properties
- Probate property owners
2. Make a marketing plan
It’s time to build your marketing collaterals once you’ve created your targeted list. In most cases, fine-tuning can take more time than seven days. We’ll presume that you can produce three main marketing pieces in one week for the sake of this column. These are some of the pieces: Learn about marketing Plan of Smart Cities.
- Your direct mail bit is the brochure, fax, mail, or leaflet that you’ll deliver to potential buyers.
- Your Page on the Website: This is where salespeople who want to be contacted can come to your page and share their contact details.
- Your Lead-Generation System Over the Phone: This can be as straightforward as a Google Voicemail account or as nuanced as a customer service department.
Your direct mail part is the most critical of the three listed. You can always make changes to your call scripts or website copy as you need it, but no leads can come in unless those direct mail pieces make contact with potential sellers. When in doubt, strive to create parts that tap into primitive emotions like greed, remorse, or redemption. Forget about percentages and statistics. When trying to persuade sellers, start with an emotional answer and then back it up with logic.
3. Distribute Your Direct Mail (Wait for a Response)
Once you’ve compiled a list of inspired seller leads, get to work and start sending out your first direct mail campaign. On your 2-week motivated seller lead calendar, this is the lightest week. Don’t worry, things will pick up in week four, but this is the week when you send out your direct mail and wait for an answer.
Getting a response from a lead usually requires over one direct mail piece. But, just for the sake of argument, let’s pretend your sales pitch is persuasive and your mailing list is well-targeted and inspired. Direct mail has a decent response rate of almost 4-5 percent, and if you send out 250 bits, you can anticipate about 12 answers.
The highest response rates would come from letters that are highly customized. Consider an envelope with a personalized address or notes drawn on lined paper. When writing your letter, cater to the participant’s concerns and state explicitly how you can help them solve a problem.
How would you distribute your work?
If you’re working alone and are on a shoestring budget, you may have to print your direct mail documents and stuff envelopes on your own. This could be a viable option. However, using a service for less will help you free up time to prepare for the next move if you have the money.
4. Sift Through Those Leads
When those inspired seller leads start calling you or visiting your website, it’s time to set up a phone call to learn more than you can say about the dealer and the house. This covers elements such as:
- Why are they hoping to sell?
- How long have they been there?
- How much they hope to benefit from the sale
- The location of the property
- Who is the titleholder?
- What changes have been made?
This week, your job isn’t to sell but to listen and collect data while also establishing relationships. The more you can teach a home seller about the procedure and what to expect across the way, the more likely they are to recognize and accept you.
If you follow the tips mentioned earlier and the steps, you’re most likely to find motivated sellers that will help you to grow your real estate business properties
M Junaid Lead Writer, Content Marketer at Estate Land, A writer by Day and reader by night