Getting OFf-Market Buyers to Sign the Contract

Buying & Selling Real Estate
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Getting OFf-Market Buyers to Sign the Contract

Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes

Hello BiggerPockets! I am a relatively new investor (2+ years) in the Columbus, Ohio market. I have trained two cold callers and am trying to go after more off-market leads for myself and fellow investors.

One issue that I am having is getting the buyers to sign after I send them the contract. In a lot of cases, it is with the price and terms they asked for. What are your tactics to get the seller to sign?

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Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
6y
Originally posted by @Remington Lyman:
Originally posted by @Robert Ellis:
Originally posted by @Remington Lyman:
Originally posted by @Stephen McDonald:

I'm not a professional, but I've heard that making a personal connection can help, but that's probably the first thing you've tried. I do know that contracts are scary things. I like that meme, but it reminds me of cartoon satans trying to get people to sell their souls. If I were to be signing a contract, I'd be worried about a couple things. The first is the fine print. There could be anything in there, hidden among the pages of size 8 font. The other thing is that a contract is a promise, and there are repercussions for breaking that promise. I'd be thinking, is this a promise I can keep? If something gets in my way, I'll have to suffer those repercussions. 

 I use the standard Columbus Board of Realtors contract. Maybe I should switch to a skinnier contract.

 A simpler contract I found works easier when working directly with sellers, the standard board contract can be long and scary in appearance!

 Are we allowed to use different contracts?

This is when we represented ourselves buying off market deals. Yes, you could use any contract. Just make sure it's drafted by an attorney and not yourself. When I represent other people i always use the standard board contract. 

Another idea is send a letter of intent, a non-binding one page letter that shows the basic terms. I do this for most commercial deals or when we want a simple offer.  

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  • Stephen McDonald
    New to Real Estate · Lewis Center, OH · Member since 2019 · 17 posts · 19 votes
    6y

    I'm not a professional, but I've heard that making a personal connection can help, but that's probably the first thing you've tried. I do know that contracts are scary things. I like that meme, but it reminds me of cartoon satans trying to get people to sell their souls. If I were to be signing a contract, I'd be worried about a couple things. The first is the fine print. There could be anything in there, hidden among the pages of size 8 font. The other thing is that a contract is a promise, and there are repercussions for breaking that promise. I'd be thinking, is this a promise I can keep? If something gets in my way, I'll have to suffer those repercussions. 

    2Reply
  • Michael Slockers
    Real Estate Entrepreneur · Owasso, OK · Member since 2015 · 220 posts · 154 votes
    6y

    @Remington Lyman Get with the potential-sellers and understand their objections? Every seller has objections that need to be addressed openly and honestly. There may be trust issues, they aren't happy with the terms, or they don't understand the contract. For that matter, they may be dealing with COVID related matters like fear, job loss, stock market fears, etc. This is one more unknown for them. 

    What problem are you solving for these people? That's rhetorical. Be able to answer that for each of your sellers. 

    2Reply
  • Remington LymanBusiness Member
    OP
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Stephen McDonald:

    I'm not a professional, but I've heard that making a personal connection can help, but that's probably the first thing you've tried. I do know that contracts are scary things. I like that meme, but it reminds me of cartoon satans trying to get people to sell their souls. If I were to be signing a contract, I'd be worried about a couple things. The first is the fine print. There could be anything in there, hidden among the pages of size 8 font. The other thing is that a contract is a promise, and there are repercussions for breaking that promise. I'd be thinking, is this a promise I can keep? If something gets in my way, I'll have to suffer those repercussions. 

     I use the standard Columbus Board of Realtors contract. Maybe I should switch to a skinnier contract.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
  • Remington LymanBusiness Member
    OP
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Michael Slockers:

    @Remington Lyman Get with the potential-sellers and understand their objections? Every seller has objections that need to be addressed openly and honestly. There may be trust issues, they aren't happy with the terms, or they don't understand the contract. For that matter, they may be dealing with COVID related matters like fear, job loss, stock market fears, etc. This is one more unknown for them. 

    What problem are you solving for these people? That's rhetorical. Be able to answer that for each of your sellers. 

     That makes sense! Thank you for the advice!

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
  • Michael Slockers
    Real Estate Entrepreneur · Owasso, OK · Member since 2015 · 220 posts · 154 votes
    6y

    @Remington Lyman If you are a realtor I'm not sure if you are obligated to a certain contract? Something to ask a realtor or your broker perhaps to keep you out of hot water.

    1Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    6y
    Originally posted by @Remington Lyman:
    Originally posted by @Stephen McDonald:

    I'm not a professional, but I've heard that making a personal connection can help, but that's probably the first thing you've tried. I do know that contracts are scary things. I like that meme, but it reminds me of cartoon satans trying to get people to sell their souls. If I were to be signing a contract, I'd be worried about a couple things. The first is the fine print. There could be anything in there, hidden among the pages of size 8 font. The other thing is that a contract is a promise, and there are repercussions for breaking that promise. I'd be thinking, is this a promise I can keep? If something gets in my way, I'll have to suffer those repercussions. 

     I use the standard Columbus Board of Realtors contract. Maybe I should switch to a skinnier contract.

     A simpler contract I found works easier when working directly with sellers, the standard board contract can be long and scary in appearance!

    [email protected]786-494-6766
    Section 8 Launch52 Reviews
    WebsiteView Page
    1Reply
  • Remington LymanBusiness Member
    OP
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Robert Ellis:
    Originally posted by @Remington Lyman:
    Originally posted by @Stephen McDonald:

    I'm not a professional, but I've heard that making a personal connection can help, but that's probably the first thing you've tried. I do know that contracts are scary things. I like that meme, but it reminds me of cartoon satans trying to get people to sell their souls. If I were to be signing a contract, I'd be worried about a couple things. The first is the fine print. There could be anything in there, hidden among the pages of size 8 font. The other thing is that a contract is a promise, and there are repercussions for breaking that promise. I'd be thinking, is this a promise I can keep? If something gets in my way, I'll have to suffer those repercussions. 

     I use the standard Columbus Board of Realtors contract. Maybe I should switch to a skinnier contract.

     A simpler contract I found works easier when working directly with sellers, the standard board contract can be long and scary in appearance!

     Are we allowed to use different contracts?

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    0Reply
  • Stephen McDonald
    New to Real Estate · Lewis Center, OH · Member since 2019 · 17 posts · 19 votes
    6y
    Originally posted by @Michael Slockers:

    @Remington Lyman Get with the potential-sellers and understand their objections? Every seller has objections that need to be addressed openly and honestly. There may be trust issues, they aren't happy with the terms, or they don't understand the contract. For that matter, they may be dealing with COVID related matters like fear, job loss, stock market fears, etc. This is one more unknown for them. 

    What problem are you solving for these people? That's rhetorical. Be able to answer that for each of your sellers. 

     That is an excellent answer, thank you for saying that. I suggested a couple of objections that I would have if someone gave me a contract. What I would want is to go over the contract with someone so I understand my obligations and am assured that I am capable of doing them, as well as that there is no "Your soul will be relinquished to Giglamesh the Destroyer" on page 83 of the fine print.

    Im half joking about the soul stuff, that's absurd, but it's about hidden obligations that the signer wouldn't know about know about until an issue arose.

    1Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    6y
    Originally posted by @Remington Lyman:
    Originally posted by @Robert Ellis:
    Originally posted by @Remington Lyman:
    Originally posted by @Stephen McDonald:

    I'm not a professional, but I've heard that making a personal connection can help, but that's probably the first thing you've tried. I do know that contracts are scary things. I like that meme, but it reminds me of cartoon satans trying to get people to sell their souls. If I were to be signing a contract, I'd be worried about a couple things. The first is the fine print. There could be anything in there, hidden among the pages of size 8 font. The other thing is that a contract is a promise, and there are repercussions for breaking that promise. I'd be thinking, is this a promise I can keep? If something gets in my way, I'll have to suffer those repercussions. 

     I use the standard Columbus Board of Realtors contract. Maybe I should switch to a skinnier contract.

     A simpler contract I found works easier when working directly with sellers, the standard board contract can be long and scary in appearance!

     Are we allowed to use different contracts?

    This is when we represented ourselves buying off market deals. Yes, you could use any contract. Just make sure it's drafted by an attorney and not yourself. When I represent other people i always use the standard board contract. 

    Another idea is send a letter of intent, a non-binding one page letter that shows the basic terms. I do this for most commercial deals or when we want a simple offer.  

    [email protected]786-494-6766
    Section 8 Launch52 Reviews
    WebsiteView Page
    3Reply
  • Remington LymanBusiness Member
    OP
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Robert Ellis:
    Originally posted by @Remington Lyman:
    Originally posted by @Robert Ellis:
    Originally posted by @Remington Lyman:
    Originally posted by @Stephen McDonald:

    I'm not a professional, but I've heard that making a personal connection can help, but that's probably the first thing you've tried. I do know that contracts are scary things. I like that meme, but it reminds me of cartoon satans trying to get people to sell their souls. If I were to be signing a contract, I'd be worried about a couple things. The first is the fine print. There could be anything in there, hidden among the pages of size 8 font. The other thing is that a contract is a promise, and there are repercussions for breaking that promise. I'd be thinking, is this a promise I can keep? If something gets in my way, I'll have to suffer those repercussions. 

     I use the standard Columbus Board of Realtors contract. Maybe I should switch to a skinnier contract.

     A simpler contract I found works easier when working directly with sellers, the standard board contract can be long and scary in appearance!

     Are we allowed to use different contracts?

    This is when we represented ourselves buying off market deals. Yes, you could use any contract. Just make sure it's drafted by an attorney and not yourself. When I represent other people i always use the standard board contract. 

    Another idea is send a letter of intent, a non-binding one page letter that shows the basic terms. I do this for most commercial deals or when we want a simple offer.  

     Jeff gave me a short contract to use, but I have been hesitant to use it. I will confirm with him that our lawyer has looked at it.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    0Reply
  • Michael Slockers
    Real Estate Entrepreneur · Owasso, OK · Member since 2015 · 220 posts · 154 votes
    6y

    @Robert Ellis the LOI is solid advice

    Often I'll put several options in the LOI so the seller isn't choosing between Yes/No but between 3 different options, each with varying benefits.

    1Reply
  • Ryan Mainwaring
    Rental Property Investor · Blacklick, OH · Member since 2016 · 286 posts · 253 votes
    6y
    Originally posted by @Michael Slockers:

    @Remington Lyman Get with the potential-sellers and understand their objections? Every seller has objections that need to be addressed openly and honestly. There may be trust issues, they aren't happy with the terms, or they don't understand the contract. For that matter, they may be dealing with COVID related matters like fear, job loss, stock market fears, etc. This is one more unknown for them. 

    What problem are you solving for these people? That's rhetorical. Be able to answer that for each of your sellers. 

     @Remington Lyman Great response.  To add to it, I recently read a book "never split the difference" that could help a lot.  

    Link to their website - 

    https://www.blackswanltd.com/

    1Reply
  • Michael Hamby
    Flipper/Rehabber · Pensacola, FL · Member since 2015 · 220 posts · 99 votes
    6y
    Originally posted by @Remington Lyman:
    Originally posted by @Stephen McDonald:

    I'm not a professional, but I've heard that making a personal connection can help, but that's probably the first thing you've tried. I do know that contracts are scary things. I like that meme, but it reminds me of cartoon satans trying to get people to sell their souls. If I were to be signing a contract, I'd be worried about a couple things. The first is the fine print. There could be anything in there, hidden among the pages of size 8 font. The other thing is that a contract is a promise, and there are repercussions for breaking that promise. I'd be thinking, is this a promise I can keep? If something gets in my way, I'll have to suffer those repercussions. 

     I use the standard Columbus Board of Realtors contract. Maybe I should switch to a skinnier contract.

    I use the standard board of realtors contract.   I have had sellers say they appreciate that I use a document that is standard in the real estate agent world and covers everything.  It's also updated regularly.   I have read over a couple of the one or two pages contracts, and it doesn't seem to cover everything or spell out things directly that I would want.  I agree if you get a lawyer to write it up, you can get things wrote out exactly how you need it.  However,  If I were the seller reviewing your lawyer written contract, I would be skeptical that is favors your side.   When I use the standard board of realtors contract, I can usually summarize the contract in 15 minutes or less in a way the seller can understand and not want take a few days to review with their lawyer.  Ultimately, if the seller doesn't feel comfortable at every point of the process, anything that seems off can blow up the deal.

    1Reply
  • Remington LymanBusiness Member
    OP
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Michael Hamby:
    Originally posted by @Remington Lyman:
    Originally posted by @Stephen McDonald:

    I'm not a professional, but I've heard that making a personal connection can help, but that's probably the first thing you've tried. I do know that contracts are scary things. I like that meme, but it reminds me of cartoon satans trying to get people to sell their souls. If I were to be signing a contract, I'd be worried about a couple things. The first is the fine print. There could be anything in there, hidden among the pages of size 8 font. The other thing is that a contract is a promise, and there are repercussions for breaking that promise. I'd be thinking, is this a promise I can keep? If something gets in my way, I'll have to suffer those repercussions. 

     I use the standard Columbus Board of Realtors contract. Maybe I should switch to a skinnier contract.

    I use the standard board of realtors contract.   I have had sellers say they appreciate that I use a document that is standard in the real estate agent world and covers everything.  It's also updated regularly.   I have read over a couple of the one or two pages contracts, and it doesn't seem to cover everything or spell out things directly that I would want.  I agree if you get a lawyer to write it up, you can get things wrote out exactly how you need it.  However,  If I were the seller reviewing your lawyer written contract, I would be skeptical that is favors your side.   When I use the standard board of realtors contract, I can usually summarize the contract in 15 minutes or less in a way the seller can understand and not want take a few days to review with their lawyer.  Ultimately, if the seller doesn't feel comfortable at every point of the process, anything that seems off can blow up the deal.

     Great advice!

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    0Reply
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