Taking those first seller calls.

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Taking those first seller calls.

Jon C.
Real Estate Investor · Phoenix, AZ · Member since 2008 · 74 posts · 14 votes

I'm new to all this and wanted to get some clarification. I am also very nervous on the phone at this point.

I have sent out yellow letters that are very basic. They basically state that I am interested in purchasing your home and please call me. That's it. Nothing about paying cash, closing quick or anything.

I am now taking my first batch of calls and I'm really not sure what to say or how much to say. What is the general consensus? Obviously, you say you pay all cash, and close quickly. However, do you also tell them you buy at a discount and will not pay market value?

So far, I have been completely up front about that. I've been saying, if you are not in any hurry or just want as much as possible, I won't waste your time because my offer will be lower than market. Then I say something about helping people who need to sell quickly because I have no contingencies, buy as-is, etc. I never give them an offer from that first call, though. I always say I need to research more, etc but I do make it clear that my offer will not be at market value. My thinking is that a)I don't want to waste anyone's time and b)I don't want to mislead them in any way or get them angry at my lowball offer.

Is this correct or am I killing any chance of a deal?

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Matthew Rose
Real Estate Investor · Honolulu, HI · Member since 2010 · 28 posts · 12 votes
15y

I myself am still relatively new at this stuff, but prior to being involved in REI I spent many years in corporate sales, doing a lot of phone communication. For me, I think the key is like Silver said getting the seller to talk so that you can listen for their wants and needs and hopefully come up with a win-win solution. Silver's recommended questions to ask I think are spot on. Even if you determine that you can't hit your target buy price, I would try to find a way to be of value to the seller and your network, for example, recommend them to a listing agent if they haven't listed already. But still act in such a way to minimize time wasting.
Another strategy, if you are creative or can partner with someone who is, would be to try and come up with multiple offer options, like cash, seller financing, subject to, etc.

Jon, I think you deserve a pat on the back for taking action and actually generating leads and talking to sellers, You're already on your way, just keep at it, practice makes perfect.

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  • Silver A.
    Real Estate Investor · Select a State · Member since 2010 · 79 posts · 17 votes
    15y

    Jon, IMHO you are doing all the right things but you are giving away too much information too soon.

    When they are on the phone and talking to you they are at least a tiny bit interested in getting rid of the property and you just could be the solution to their problem. So you are not wasting their time.
    Think of the first call like a friendly conversation - you'll want to build rapport with the seller and also find out as much relevant information as possible.
    - is their property something you are interested in? (Location, size, condition, ...)
    - why are they thinking of selling? ("well, we need to sell ASAP because..." would be a good answer:))
    - and why do they need to sell yesterday?

    By now you should know enough about the seller and the property to figure out the best way to make an offer.
    They should be doing 80% of talking during the first call and remember, you are interviewing them. Not the other way around.

    When they are clearly not motivated and 101% need to sell, you do not need to even make an offer if you feel bad about maybe insulting them. Just say that their property is not quite what you are looking for, try to help them if you can (send the lead to another investor or help them to find a listing agent or ...) and thank them for their time.

    Search the forum for scripts but just to get ideas and rephrase them they way you would normally speak. Be you. Reading questions off the screen one by one does not work very well - I have been there :)

    1Reply
  • Michael Quarles
    Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
    15y

    There all kinds of things that go into lead capture however at the core the good deals seems to fall in our laps as long as we advertise and are breathing.

    I think there are 3 questions to ask that tell us the story. And any seller who isnt willing to anser all of my questions doesnt get to sell their house.

    You cant lose what you dont have.

    Q1) On a scale of 1 -10, 10 being highly motivated to sell, how would you rank your motivation, MUST be 7 or higher.

    Q2) In todays market what do you think your house will appraise for?

    Q3) What are you asking for your home?

    Q3 must be less then or equal to Q2

    Just do enouigh advertising and youll win this game.

    0Reply
  • Jon C.
    OP
    Real Estate Investor · Phoenix, AZ · Member since 2008 · 74 posts · 14 votes
    15y

    Well, I am usually asked what I do or if I am an investor right away. Thats what leads to my buying criteria. Then they seem to lose steam or don't want to discount their properties. I can't even get to the part where I ask about motivation or any of the nuts and bolts.

    Maybe I should just say I am an investor, period. Then start discussing motivation, their price expectations, etc before I get to my buying criteria.

    The few conversations I have had so far have been very friendly and informal. No yellers yet. But they go nowhere and I wasn't sure if I was explaining myself too quickly into the covnersation and killing any potential.

    0Reply
  • Matthew Rose
    Real Estate Investor · Honolulu, HI · Member since 2010 · 28 posts · 12 votes
    15y

    I myself am still relatively new at this stuff, but prior to being involved in REI I spent many years in corporate sales, doing a lot of phone communication. For me, I think the key is like Silver said getting the seller to talk so that you can listen for their wants and needs and hopefully come up with a win-win solution. Silver's recommended questions to ask I think are spot on. Even if you determine that you can't hit your target buy price, I would try to find a way to be of value to the seller and your network, for example, recommend them to a listing agent if they haven't listed already. But still act in such a way to minimize time wasting.
    Another strategy, if you are creative or can partner with someone who is, would be to try and come up with multiple offer options, like cash, seller financing, subject to, etc.

    Jon, I think you deserve a pat on the back for taking action and actually generating leads and talking to sellers, You're already on your way, just keep at it, practice makes perfect.

    2Reply
  • Silver A.
    Real Estate Investor · Select a State · Member since 2010 · 79 posts · 17 votes
    15y
    Originally posted by Jon C.:
    Well, I am usually asked what I do or if I am an investor right away. Thats what leads to my buying criteria. Then they seem to lose steam or don't want to discount their properties. I can't even get to the part where I ask about motivation or any of the nuts and bolts.

    Maybe I should just say I am an investor, period. Then start discussing motivation, their price expectations, etc before I get to my buying criteria.

    When the seller asks something, be brief and honest in your answer and ask back, why are they asking that. They will tell you why, and you can tell them why they will never have such problems with you that they have had with another investors.

    - "helllllo, i saw your ad and i am thinking of selling my house. are you an investor?"
    - "yes I am. why are you asking that?"
    - "well, the last three investors i talked to yesterday were very ____ and they wasted a lot of my time on the phone before offering me almost nothing, without ever coming to see the property - can you believe that?"
    (and now you know the seller has other offers, the seller did not like how the investors spent their time on the phone and the way the offers were presented)
    - and you could reply with something like "i have heard that many investors like to make low offers on the phone. i believe that each house is different and it's not possible to make a fair offer on the phone based on just area and the number of rooms in the house before having seen the house. do you have a moment to tell me more about your property so i could see if it is something i'd be interested in? i would not want to spend more of your time than absolutely necessary."

    Then have pen and paper ready and let them talk ;)

    0Reply
  • Travis Bontrager
    Real Estate Investor · Denver, CO · Member since 2011 · 17 posts · 8 votes
    15y

    Just remember, you are helping them solve a problem. You should never care how much they are asking for the house, only how much you can pay. Your offer is your offer. I would encourage you to do a practice run if you are uncomfortable. Look up some listings on craigslist FSBO in a different market than where you live. At least you can just hang up if you feel nervous. It's not like they are every going to see you on the street.

    2Reply
  • Travis Bontrager
    Real Estate Investor · Denver, CO · Member since 2011 · 17 posts · 8 votes
    15y

    To add to this also.. make sure you are creating doubt in the mind of the seller as much as possible. When they say how much they think the house is worth ask them "Is that fixed up or in it's as is condition", For repairs ask "Is that with me doing the work or hiring it out?"

    2Reply
  • David Tower
    Real Estate Investor · Keller, TX · Member since 2011 · 118 posts · 39 votes
    15y
    Originally posted by Travis Bontrager:
    Just remember, you are helping them solve a problem. You should never care how much they are asking for the house, only how much you can pay. Your offer is your offer. I would encourage you to do a practice run if you are uncomfortable. Look up some listings on craigslist FSBO in a different market than where you live. At least you can just hang up if you feel nervous. It's not like they are every going to see you on the street.

    That practice run idea is great Travis...I think I'm going to try that. I've worked as a manager in a call center for several years and we always do call simulations with our new hires before they get on the phones for real.

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