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How to buy a house in a slow market – Part 2

In our last article, we discussed the challenges most sellers face in a slow market and how we as real estate investors can create truly win-win deals. This is a continuation of where we left off in Part 1.

We’ve talked about the art of creating a deal that works for the seller to take the pain out of you, but we haven’t talked about how we find these sellers in the first place. Time and experience have taught us that when we want to create a winning buyer and seller deal, it is always best to work directly with the seller and avoid real estate agents as much as possible.

Why would we say we want to avoid working through real estate agents, when 80% of people usually sell their homes through a real estate agent? The answer is quite simple actually. A real estate agent is motivated by three things. Listings, Sales and Commissions. The more stock they have, the better chance of selling one of the many listings they may have.

In a slow market, sellers who have an urgent need to sell typically don’t have the time to sell through a real estate agent. In many cases, they don’t have enough capital to pay realtors’ commissions, so it’s not worth it anyway.

So how do you reach these vendors so you can work with them in the first place? We have found that the most effective way to find these sellers is to go directly to the source.

We have found the three best ways to do this as follows:

1. Place ongoing classified ads in your local newspaper, in the Homes Wanted section, educating the seller of your Quick Home Buying Service.

2. Target the areas that interest you and make a small to medium size flyer in that area. Use attention-grabbing headlines like “We bought your house today” and under this, add a few bullet points that show what problems you can fix.

3. Drive around the area and take note of homes that have been for sale for more than two months, and write directly to the seller, informing them of your Home Buying Service, and to contact you if your real estate agent Raíces can’t find anyone to buy their house.

All three methods above generate phone calls. We know it from experience. This creates a serious sales funnel that can be repeated over and over again. You should always ask yourself the question “How do I make money from this deal?”. It’s easy to get caught up in the “Solution Man” mentality and try to help everyone who calls, but you’ll only end up wasting the salesperson’s time, and yours, if you don’t qualify each salesperson and tell them upfront if you can. or he can’t help them.

If the numbers don’t work, tell the seller right away and if possible make some suggestions that might be an alternative for them. This way, you may have been able to provide them with some alternatives that could help them, even if you can’t make any money from the deal. We’ve even given some sellers the phone numbers of similar companies, just in case they have a way to help the seller when we couldn’t help.

Once you’ve talked to sellers and you’ve identified what you can help them with, it’s best to canvass them about the deal styles you could work on with them. If you sound open to these ideas, then you should make the appointment in order to put together a winning deal.

By following the above methods over and over again, you’ll have an endless supply of motivated sellers and no shortage of homes to buy on the most flexible terms available. His streams of income from the houses he buys are also endless. In the following articles, we’ll talk about creating winning deals for tenants who want to share the equity in these deals or even enter into a rent-to-own option to help the tenant become a homeowner over time.