How To Beat Out 48% Of Other Real Estate Investors
As a real estate investor you know how much time and energy goes into making the deal. But, did you know that most investors aren’t able to answer the question “What price and terms did every past seller you've spent time with finally sell their properties for?” This is because most investors won’t take the time to follow back up with their clients. In fact, according to statistics about 80% of sales are actually made between the 5th and 12th contact with the seller. On top of that, 48% of real estate investors will actually never follow up with a potential seller. Often times this is because once the seller says no, the investor will take that as law and not bother to follow back up. However, more times than not if you are consistent with following up with clients, you will have a greater chance of actually closing a deal. In this article we will cover a few tips on how to follow up with sellers you’ve already made offers to, and how to potentially turn that previous no into a yes.
You've probably heard the saying “experience is the best teacher.” Well, this rings true with real estate. One of the best things you can do in real estate is to allow yourself to learn in any and every situation. You can opt for Real Estate Virtual Tours to check out different properties too. This can even be applied when a home has already been sold. For instance, if you made an offer on a house and the seller turned you down and sold it to someone else. Then it would be a good idea to follow up with the seller and ask them these following questions.
- When did the home sell?
- Did the home sell to another investor or end-user?
- What was the final sales price?
By getting the answers to these questions you can better learn about the seller and what it is they're looking for when trying to make a deal. Remember when engaging with the seller to remain upbeat and positive in order for a good and memorable interaction. Also, as a side note, keep in mind that if a home is not technically sold, and is going through the closing process, there's still a chance to continue creating value with the property seller. So, don't count a house in the closing process as sold. Otherwise, you could miss out on a good opportunity.
There are several benefits aside from a learning experience that come from following up with the seller. For instance, you can potentially gain referrals for future properties by reaching out to a seller. This is because it allows them to become reacquainted with you, as well as gives you the opportunity to be proactive and let the seller know you're genuinely interested in helping to expand your circle of influence. Often times, a seller will see your interest and can point you in the direction of other owners who want to sell their homes.
Another thing you can gain from following up with the seller is more information on their situation and what it is they’re exactly looking for, when making a deal. Make sure when speaking with a seller you speak with clarity, you listen to the seller, provide the seller with quality advice and potential options on how to sell their home, and ask the appropriate questions to reevaluate the situation. For instance, you can ask them if anything has changed, if there's any potential buyers, if any contracts have been accepted, or if the asking price has changed.
Furthermore, when you are consistent and follow up with a seller you will be remembered. After all the more time someone spends with anyone the more time they will remember your face, name, and phone number. And the more they remember you, the further in the front of their minds you will remain. So, when the time is right you could potentially be the only person that they call when wanting to sell their home. Therefore, be proactive and follow up with all of your sellers, even the ones who told you flat out no. After all, you never know if and when they could change their minds. By being consistent and following up with your sellers you could open the door to an incredible investment that will ultimately lead you to success in the real estate industry.