There is a lot of material out there about finding motivated seller leads, but what about losing them? What could you say or do to screw up a deal? Here are 6 ways a real estate investor / wholesaler can lose a deal with a motivated seller lead.
1. Not Being Available
As a real estate investor / wholesaler, the worst thing you can do is to not be available when a lead calls, texts, or emails you back after your initial reach out.
You sought them out, and you made a compelling offer (aka the hook). But if you are unresponsive or hard to reach when a lead takes the bait, chances are you will not reel in the deal.
Now, this is not to say you should take a call or text after hours or late at night. BUT there is a chance that some leads will reach out to you during off hours. To “be available” without actually being available during your time off, you can set up automated SMS and email, and record a voice message, letting the lead know your hours of operation, and that you promise to call back the next business day.
2. Failing to Follow Up
The money is in the follow-up. If a lead says they are “Not Ready to Sell (Yet),” you should never say, “Okay. Call me back when you’re ready.” That is a fatal mistake.
Chances are, if the seller is looking to sell, they are hoping for a better deal, and you need to stay front of mind, always there, but not in an oppressive manner, so that when the seller is short on time and patience and buyers, they come to you first.
The follow-up should be a drip marketing campaign, using different tactics, including phone calls, SMS, ringless voicemail (RVM), and email to retarget leads who manifested intent. Always build rapport.
3. Not Being Flexible
Depending on the market and status of the economy, you may want to consider being more flexible with your property requirements and expand your search. Increase your sellers (and buyers) lists and consider properties you did not think twice about before.
Another way investors sound inflexible is when talking about the offer. Sellers often have the impression that it’s final, and they will say “no” or that they will “think about it” and you will never hear from them again. If this happens to you frequently, try a different approach. Provide a price range indicating that you are open to negotiation. If they still need to think about it, commit to reconnecting to go through the details on how you got to that offer range.
If, however, a property comes along you are certain you cannot buy, make a good impression by still being helpful. Let’s say, for example, a motivated seller contacts you about selling land, but that is not what you normally purchase. Rather than say, “Sorry. I don’t do that,” you can put them in contact with a realtor from whom you receive referral fees.
4. Not Being Fast Enough
When a seller reaches out to you or responds with “Make Me an Offer,” you need to be on the ball, because the seller is in a mindset to take action. Your window of opportunity is small, and sellers who need to sell fast are often volatile and easily swayed. Family, friends, and the competition can shift them away from you.
While you can never force a seller to make a decision, you can be ready to make an offer the same day the seller reaches out and set an appointment in the very near future.
5. Failing to Know (and Address) Your Target Audience
No two sellers are alike: every seller has a situation, a reason they need (not want) to sell, and you need to be able to address each of them specifically. Do not roll your sellers into a crowd, but rather create customer personas to help you drive conversation and your marketing content.
If you know how to speak to a seller who’s going through probate or bankruptcy, or is facing foreclosure or tax liens, or a divorce, relocating, or needs to downsize – whatever the reason they need to sell, you are going to win them through empathy.
6. Doing it ALL BY YOURSELF
You are one person! It is impossible to do it all alone when running your REI business: finding motivated seller leads, building lists, verifying numbers, marketing to leads, live answering and prequalifying them, and scheduling appointments. It’s a lot of work and takes a lot of time, and if you try to do it all yourself, chances are you will burn out fast.
Hire yourself a team, or at least outsource work to trained virtual assistants. If you can free up your time by assigning work to others, you can then be available to sellers, making sales and closing deals, and keeping your sanity.
GoForClose Does 75% of the Work for You
GoForClose is the only all-inclusive marketing agency for real estate investors and wholesalers. What does that mean for you? It means we provide you with a specialized team and marketing platform to achieve the following:
- Find motivated seller leads (in your market)
- Build a motivated homeowner list (exclusive to you and your market)
- Skip trace names, numbers, and addresses to ensure deliverability
- Market to leads via cold calling, SMS, RVM, email, and PPC ads and social media ads
- Live answer leads who request an offer, OR
- Retarget leads who were “Not Ready to Sell”
- Prequalify seller leads who are “Ready”
- Schedule appointments to your calendar
This way, all you have to worry about is talking with qualified leads and closing deals. By letting us do 75% of the work for you, you can then focus on fine tuning your offers, speaking to different seller types, and close more deals.
If you have questions or are curious to know more, request a free consultation below.