9 Real Estate Lead Generation Tips for Finding Qualified Sellers
In real estate investing, the most valuable assets you can find are qualified sellers. When someone is ready-to-sell, they are usually more willing to accept deals that favor your bottom line.
Not only that, but individuals who are qualified can help you work faster since you might not have to handle or process as much paperwork when buying a property.
That being said, because transaction ready sellers are so valuable, markets can be highly competitive. For many investors, it can be challenging to get responses, particularly if you don’t know the best approach and are making mistakes along the way.
So, with that in mind, we want to share some insider tips that can help you locate these sellers and close deals. With the right methods and tools, finding ready-to-sell leads is relatively straightforward.
1. You Need a Reasonable Seller
Technically speaking, what you need to find is a reasonable seller, since transaction ready sellers are so few and far between.
Unfortunately, many people trying to sell a home want more than is possible. Here is the rundown of reasonable and unreasonable sellers, so you know what to spot in your search.
- Makes informed decisions
- Willing to work with you
- Okay with you making a profit
- Wants to sell within 30 days to 12 months
- Wants significantly more than market value
- Won’t budge on their price
- Wants money up front before agreeing to anything
At first, you may assume that unreasonable sellers are a lost cause. However, sometimes, the best deals can be from individuals who started off wanting the world, and now they are facing a harsh reality.
This brings us to our next point.
Real estate is really a numbers game; the odds of immediately finding a reasonable seller is almost zero.
2. Transaction Ready Sellers Won’t Reveal their Cards Immediately
Most new investors, however, get frustrated when they can’t find refined leads, and they assume the market must be dry.
The truth, though, is that you have to be in the right place at the right time.
By boosting the number of connections you make, the better your odds of getting a call back. In most cases, sellers won’t open up immediately about their needs, and why would they?
If you were selling a property, would you explain your situation to the first person who called?
Think about it this way; if 1000 people walk onto a car lot, most likely, 995 of them will walk off without buying a car.
Overall, the best strategy is to boost your marketing numbers and stay consistent.
Consistency is the key to success in this business, it’s all a numbers game.
A seller may not want to open up today, but things can change in the coming weeks or months. If you give up right away, that seller will reach out to another investor that stuck around.
3. Not Asking the Right Questions
When trying to market to qualified sellers, you need to know a lot of details. However, you don’t want to waste time by asking for more information that could be available online with a quick search.
Questions like square footage, year built, and lot size should be listed publicly, and chances are that the seller won’t know these details immediately.
That being said, one of the first questions should be: “what is the address of the property?”
You need to make sure that both of you are on the same page before proceeding.
Realistically, you should be asking questions related to the why behind a seller’s motivations.
However, it’s best if you’re not asking this directly.
Instead, ask questions that can help you understand the why, such as:
- How soon are you looking to sell?
- Did you have a selling price in mind?
- Is the house behind on payments?
- If I could make a cash offer on the house, how much would you accept?
This line of questioning can give you a lot of insight without making it seem like you’re getting too personal.
Also, notice that we asked if the house was behind on payments, not the individual.
Putting a seller on the spot like that can be overwhelming – soften the message a bit first.
4. Not Building a Relationship
As a real estate investor, you will eventually come across an angry seller.
Perhaps you’re looking to buy a property of a recently deceased person, or the home may be a tax lien, and it seems like you’re trying to exploit the seller’s condition.
Although it won’t seem like it during the call, angry sellers can often be some of the most lucrative if you know how to handle the situation.
The best thing you can do as an investor is personalize your motivations and build a relationship.
First, doing this will help you stand out from the competition.
Sellers will be getting tons of calls and mailers, so you need to have a way for them to remember your name.
Second, by building a relationship, you can create a stronger bond. Not only will the seller remember you, but he or she will reach out when the time comes.
You want to be the go-to person for sellers, and the only way you’re going to get that is if you make it personal.
As we say, people sell based on emotion, not cold hard cash. Tap into that, and you’ll succeed.
5. Not Following Up the Right Way
If you’re putting a website or email address on your direct mailers, you’re never going to find appointment ready sellers. Not only that, but it’s impossible to get personal through an email.
Instead, you need to communicate exclusively through the phone.
When you only have a phone number on your mailer, it forces the seller to give you a call, where you can be much more engaging and friendly.
One thing to remember is that once you establish phone contact, you shouldn’t be using postcards again.
Build the relationship by calling or sending a letter; remember, make it personal.
6. Reading the Wrong Script
One problem that some investors have is that they aren’t very good over the phone. However, if you want to make it in this industry, you need to learn.
The best way to do this is to develop a script.
However, the trick here is to create an engaging script while not sounding like you’re reading lines. Here are a few tips to getting it right:
- Be Accurate and Up-to-Date – if you don’t have the right details or you’re scrambling to find them, it will turn a seller off.
- Be Friendly – start with some personal information and get on a first-name basis as quickly as possible.
- Be Persuasive – focus on asking the right questions and getting the answers you want.
- Be Knowledgeable – showing that you know your stuff can build confidence in a seller and help your relationship.
7. Not Making the Right Offer
Just as you want to do business with a reasonable seller, you need to be a reasonable investor.
In most cases, sellers will take a considerable loss to avoid getting stuck with a bad deal. Ideally, you should make a sizeable profit on the property, but both sides should walk away satisfied.
Overall, you should be creating win-win scenarios that are as enticing to sellers as they are to you.
Best of all, if they feel like they got a good deal, sellers will often recommend you when someone they know is looking to sell.
8. Not Calling Enough People
Again, real estate is a numbers game.
If 995 out of 1000 people won’t buy a car at the dealership, the vast majority of calls you make won’t wind up with a deal at the end.
The sooner you recognize and accept this part of the industry, the easier it will be to succeed.
On average, it can take 40-60 leads to get one deal. So, if you only have a handful of leads, your close rate will be virtually nothing.
Bump your numbers up, and you should start seeing results.
9. Get RealEstateInvestor.com for Transaction Ready Leads
As you can see, there are plenty of mistakes to be made on the road to finding qualified sellers.
Fortunately, we have the right people and systems, consistently putting you in front of the right sellers at the right.
See if you qualify for our 1-on-1 program. These sellers are ready-to-sell, are you?