"Make me an Offer"

[Josh K]

I've recently started experimenting with direct mail. So far I've had great response rates and the phone is ringing, but virtually every seller I talk to wants me to make them an offer before I've even had a chance to see their house or its condition. Some also ask for comps before they will show me the place. Since I'm looking to rehab these properties, I at least need an idea of the work to be done to come up with a number to give them. Normally I ask what their asking price is but every one has been reluctant to give up a number. I read in another post to never give out a number first when working with sellers.

Anyone have any advice for how to deal with these sellers to either get access to the property or get an asking price without having to give up an offer price first? And is giving them a ballpark figure first really such a faux pas?

[Michael Quarles]

Good to meet you.

This is a big question. And I'm on my tablet which doesn't like BP much so I'm going to keep it short.

The key is controlling the call. You must have your questions to ask memorized or written down and close by. The reality is that direct mail creates a bucket load of calls from fantasy land sellers and question one gets rid of them if asked correctly.

1) Do you have a home you're wanting to sell?

The only answer which leads me to question two must be a "Yes" A lot of times the caller will say something to do with you mailing them. These questions are from your prospects not a true seller. Therefore be polite and make them aware that you're looking for sellers who want to sell and ask them to call you back when the day comes when they want to sell. Always ask for referrals before hanging up.

If they answer yes the continue to question two.

2) is the property currently listed with a real estate professional?

The answer must be "No". If they say yes then I let them know that I don't buy through real estate professions and that if the listing becomes expired or is cancelled to please call me back and I will make them a win win offer. I explain what a cancelled listing is and how it is different than a withdrawn listing.

If a No answer I continue

3) what do you think the house is worth in today's market?

I know that when someone truely wants to sell they know what the house is worth.. All sellers do one of the following.

1- they drive the neighborhood for for sale signs and call the agent or read the flyer.
2- they look in the classified section of the newspaper for houses for sale
3- they read Realtor magazines for prices or
4- they visit open houses.

If they say they don't know I ask them if they could do us a favor and drive the neighborhood for housing that's for sale with flyers and determine how their house compares to that house. When they have to please call me back.

I can't shock the seller with value. That's their job. If they give me a price I then ask question 4.

4) what amount are you hoping to sell for?

The answer must be equal to or less then question 3. If they say an amount which is more I ask them to call me back when the house is worth that amount. Equal to or less than amounts I can deal with.

If they answer question 4 correctly I head to question 5.

5) what's is the address?

I follow up their answer with a favor question to stick by their telephone and I will call them back within 10 minutes. I let them know that I'm going to do a little due dilligence ...

When I call back if their question 3 number was correct I continue to ask questions and set an appointment. If the amount was too high I let them know that it seems like their number was too high and ask for an adjustment.

At this point they may lower or ask what value I came up with. To that I say my research was basic and any number that I would say would be innacurate.. however the numbers I'm seeing say that you X value is too high. I never give a value first. Ever....

If you want to call and role play send me an email and lets schedule 30 minutes.