All Forum Posts by: Kris Swierz

@StacyWeng, Most of them will get bid up but not all of them.  Back in 2008 at the top of our market I purchased a home for $460,000 and I was able to sell it for $760,000 with about $80,000 worth of work going into it.  That home had 8 offers on it.

@stacy 

@Stacy Weng, it is after all fees including closing costs.  It's very difficult to achieve on a regular basis.  I'm in Seattle also so the home prices are pretty high.  I generally try to make 25% off of my investment all said and done.

Here's a good example Seattle Oympic Hills Fixer and here are the comps to go with it Olympic Hills Comps.   This one has at least a $100,000 spread.

I was curious to see if other agents tracked their conversion rates for online leads and what their strategies are.

I use a few different lead sources and I categorize my leads into 3 separate groups.

RFS - This would be for a buyer calling or emailing requesting to see a specific house.  My current conversion rate is around 1 - 10.  I call right when the lead comes in, if they don't answer I will immediately follow up with an email. I will do the same the next day until I will either connect with them or after about 5 tries I put them to inactive.

INQ - This would be for a lead that phones in or calls with a specific question.  My conversion rate for this type of lead is about 1-30.  I use the same sequence as the RFS.

SS - I call this a search saver lead.   For this type of lead I make an initial phone call and then set them on a drip system.  Conversion rates for this type of lead is around 1 - 150.

Would love to hear other agents conversion rates, sequences, and tips.

You can find those properties, they generally are distressed though and need a little bit of work.   You will find in the hot area of Seattle like Ballard, Green Lake, Queen Anne, the cap rates are around 3.5% - 4%. It's a totally different ball game, investors in those areas almost always pay cash and all through they are getting a pretty small return based on the cap rate if you measure their return based on cap rate and appreciation it will be much higher than north or south Seattle.

Here's an updated list of distressed and investment properties for sale around Seattle.

I always aim to profit at least $100k when all said and done.  That gives me enough wiggle room if I go over budget or I have to do a price reduction  if the market changes.  Some other good rules to follow is to not buy on any busy roads, etc.. concentrate on prime areas you and you should be fine.

Always put an offer in writing.  Once it's in front of a seller they will put more thought into it.

Hi Mark,

You can not use your pre-approval for a cash only deal.  Usually a cash only deal means that a traditional lender will not lend on the property.  This is usually because of the condition of the home but it also can mean there are violations on the home.  Basically the home is to risky to lend on.