The real estate industry is not based on numbers. It is not a location game. It is a relationship business. You are not investing in a piece of land. You are changing someone’s life. This industry gives you the opportunity to make the profit while helping your clients and customers.
One of the core business strategies is to send out multiple offers to interested sellers and then wait for your phone to ring. While it might be a good strategy to send offers in bulk, it does not work when you are trying to build lasting relationships.
Companies have learned this lesson the hard way, but you do not have to. Learn about these essential lessons before you write your next offer.
Learn the Reason for Selling
Put yourself in the seller’s shoes. Why are they selling their property? Find out their true motivation. As the buyer, you are looking to invest in an estate that can earn you profit in the future. At the same time, sellers want a hassle-free process, fair property price, and a quick closing. Understanding the seller’s perspective gives you an edge over other people. You can write your offer with confidence.
For example, someone in the pre-foreclosure phase wants to sell the house within days if not hours. Will you be able to solve their problem within their timeframe? Will you help them fight property foreclosure?
Ask yourself, why the seller would accept your offer? Do not just send a lowball offer because that is all you could afford. Dig down deep into the rabbit hole and create a contract that works for both parties because that is the only way to attaining long-term success in this industry.
Write an Attention-Grabbing Offer
Writing good letters is a must in a seller’s market. However, this step is equally important in a buyer’s market. Once you understand the seller’s perspective, you can create a unique offer. It is time to stand out.
Make sure to back up your price with researched data and market value of the house. Send a fair price offer because more often you do not get the second chance. Your first offer is your last impression. Sending a good proposal means you are opening doors to a successful negotiation process.
It is also essential to remain flexible with your terms. Be ready to waive your contingencies to match the timeline and requirements of the seller.
Make It Easy for the Seller to Accept Your Offer
Lenders accept a short sale for a reason. They allow it because it is a less expensive option compared to a foreclosure. Time and money are important tools. Sellers are looking to save both when it comes to selling a property.
When you are presenting your offer, be flexible and make it at as easy as possible to accept your proposal.
Make sure your contract is easy to read, nicely formatted and fulfills all legal requirements. Give contact information so the customers can reach you 24/7. Stay flexible with the closing time and pricing terms. Be clear about the payment information. You want to disclose to the seller that you can finance the property whenever the seller wants to sell the house.
Make a Decision
As a real estate professional, you know your area and the local market. You know the right price of the house. Be prepared to pay that amount and close the deal. Ideally speaking, the seller agrees to your offer, and you close the deal within two weeks. However, the reality is different.
You may have to negotiate with the selling party. They might want a counteroffer. In that case, it helps if you have studied the market before sending the offer. It helps you create a firm base for negotiation so you can create a win-win situation.
All we are saying is to determine the right value of a deal and stick with it. Do not send low ball offers but do not change your mind either. It will help you win more deals more often.
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