Hey Baird. Good questions. I haven’t done direct mail in a few years. We stopped because our response rate was around 0.25%. Just wanted to give you that data point.
- We are doing marketing in a couple of markets. Most of the sellers know it’s a huge seller’s market, so keep that in mind. Another way to bring value is with a quick close, but it sounds like you will be getting a loan, so you may not have the speed that a cash purchase would. Saving money on commission though could be a big one for the homeowner, especially with these prices.
- I thought you were trying to buy directly from the homeowner? Where did the use of an agent come from?
- I would close on the home the same way, with the exception of you would be doing the paperwork yourself vice the realtor.
- Not that I know of, but that would be a good question for a lender.
As for what you can say when someone says “Tell me more,” I would just be honest about what you are trying to do. Tell them that you are looking for a home in the area for you and your wife, so you sent mail to all of the homes in the area. Who knows, maybe you can get lucky and find someone who is looking to sell and you happened to catch them before they reached out to a realtor. If you are looking for a “great deal” though, I would be mindful that a lot of people understand the market and will probably not be willing to sell at a steep discount, but you never know.
