For Sale by Owners are a Gold Mine
Every Real Estate agent, every real estate investor is aware of the dreaded
For Sale by Owner.
This seller is defying the rules of business by placing a sign on their property telling the public they are going to sell their property themselves.
Every real estate agent has a list of for sale by owners, but for many reasons of their own, never approach them. The agents who do approach them try to get the for sale by owners to list their properties with them by trying to convince the seller that listing the property with them they will have enormous advantages. Every for sale by owner has heard many variations from many agents looking to get a listing, and they tune the agents out, and most of them when they find out you're an agent will not even talk to you.
How you as agents or investors look at the for sale by owner, determines your success with the most valuable sellers in the field of real estate.
Everyone knows the main reason the sellers choose to sell their property on their own, is to Save the Commission, but many of them are just fishing. It doesn't matter, what matters is, by placing a sign on their property, they are telling everyone they are interested in selling their property.
How you approach those sellers is up to your own personal style, you can call them or you can knock on their door. I feel if they are going to reject me I would rather have them do it over the phone, it saves time and you can move on to the next potential seller.
My approach over the phone is to introduce myself as an agent or investor up front.
Hello, am I talking to the owner of the property located at (the property address)
You want to make sure the person your talking to has the authority to sell this property.
If the answer is yes, I continue with, my name is (your name) and if as an agent tell them the name of the company you're affiliated with, if you're an investor you tell them also.
I'm going to use the dialogue as if I'm an agent.
"My name is (your name) and I'm with ABC realty, I'm working with several buyers who are interested in a house like yours, and I would like to preview your house for them, when would be the best time for me to come by, would 2:00 be good or would 4:00 be better.
If they tell you they are not interested in talking to a real estate agent, you say I'm not interested in listing your house, I am interested in showing my buyers your house, if they would like to buy your house we can work something out, and again repeat I'm just interested in previewing your house would 2:00 be good or would 4:00 be better.
A large percentage of the time you will receive an appointment.
Before you approach the potential seller, whether your looking for a listing or to purchase their property, you need to look at them differently.
Most real estate agents or investors make the mistake of thinking of sellers or potential sellers as just that, Sellers. If you want to increase your business you need to look at sellers as buyers and sellers. Think about it, whether you are looking to get a listing or as an investor looking to purchase their property, what motivation do they have at the moment. Their motivation to sell most likely is to receive enough money, which will allow them to move to another position in life or another residence.
I always approach a seller as a buyer and when you use this method you will increase your wealth enormously. Every salesperson has their own personality so use what works best for you. This all starts with a knock on the door.
The door opens and I greet the potential buyer and seller with an introduction and he tells me his name is Tim. I say Tim I'm working with several buyers and to save them time I preview houses they may be interested in so if you would show me around.
As we are moving through the house I'm observing pictures, books, looking for things of interest, I also am asking questions, how long have you lived in this house, how much of a mortgage is left, how long
have you been trying to sell the place, have you had many offers.
The most important question I ask is:
Tim where do you plan on moving to when you sell this house. Tim says I want to move to Smyrna Beach, I said what is in Smyrna Beach. He stops and turns to me and says I do a lot of diving, fishing, and I have a commercial license to captain a fishing boat. It's a great area away from all the hustle and bustle.
I asked him if he had been looking in the area for something and what was he looking for, he replied that no he hadn't been looking because he has spending so much time on weekends trying to sell his house that he hasn't even been able to go diving or fishing much either,
Now this would be a great time to put the old listing line on him, right. Well this wasn't my first time out so I knew my method would work with Tim if I continued along my original plan, and that is to treat the seller as a buyer. As we worked our way around the house I asked Time a couple more questions about his house, but I was really interested in learning more about where he wanted to go and what was he looking for in Smyrna Beach. He revealed to me that he had a small carpet business, and he would really like having a duplex. He was familiar with the area and gave me a general location of where he would like to live. I was satisfied with tour Tim gave me, and my questions had been answered and I left telling Tim I would get back to him.
He had no idea what I had planned for him at the time. As soon as I got back to the office I contacted a couple of real estate agents in Smyrna Beach I found one I felt I could work with and gave him all the information Tim gave on what he was looking for and what Time could afford and how much money he had to work with and that his credit was pretty good. Tim worked with carpet suppliers they are easy to check with, Tim was in good standing.
Two days later the agent from Smyrna Beach called me with good news that there where a couple of properties, which would make good fits for Tim. As soon as I heard from the agent in Smyrna Beach, I called Tim telling him there were a couple of duplex's in Smyrna Beach a real estate agent friend of mine said was just what he was looking for and if he wanted I would make an appointment for the coming weekend if he choose to go up and look at them.
Tim got all excited and decided to go up that weekend and look at the duplex's. The real estate agent met with Tim and showed him the duplex's. Tim saw one he really liked, and being a sharp real estate agent and knowing he had a motivated buyer, he got Tim to write a contract contingent to the sale of Tim's house. Also being a smart agent he knew Time had a problem he knew I could solve, and that was sell Tim's house as soon as possible.
Tim called me from Smyrna Beach and told me had signed a contract contingent on the sale of his house and if I would list the house how long would it take to sell the house how long would it take to close. I told him, because the house was in very good condition, if we priced it right it could be sold quickly with the least amount of problems.
When Tim returned home, we went over the details of the listing agreement and now because Tim was really motivated to sell we priced the property right and the negotiating process with buyers was much less complicated.
The house did sell quickly and the problems were held to a minimum.
By doing what Zig Ziglar says - If you can show enough people how to get everything they want in life, you will get everything you want in life. By showing enough For Sale by Owners how to get what they are looking for, you will truly have found a Gold Mine, and isn't that what you are looking for?
For Sale by Owners are a Gold Mine
Take a seller and making him a buyer and then into a very motivated seller
Everyone wins, and when you start using this method with every listing you go to, you will be a Winner.
Always work with motivated people
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