If your sellers are saying to you “I got 10 other postcards”, or “I have someone else coming to look at it”, or “I have a higher offer than this”, then you might want to take me a little more seriously.
When the sellers start saying this to you, realize that the wholesale real estate market is competitive. There are other real estate wholesalers out there trying to get the same deal under contract that you are. They may even offer MORE MONEY that you are willing to offer, because they don’t know what they’re doing.
This is when you have to really start looking at your business from a serious angle. Realize that if you want to close more deals, then you’re going to have to do something different that these other guys are doing. You need to present yourself as a serious wholesale real estate investor, who has a process. You need to go see the house (maybe not you but SOMEONE DOES), and make the seller an intelligent offer.
When you talk to a seller for 10 minutes on the phone and then sling an offer out there, how can that be taken seriously? We take it lightly as investors because we deal with houses and offers all day long. But when we’re talking to a seller, this is serious business. Real property is typically the biggest asset someone can own. You should present yourself as someone who has taken the time to look at the house, know what you’re dealing with and come up with an offer that makes sense. This will be more justified for both you AND the seller.
I’ve heard NUMEROUS sellers say to me “Yeah, someone made me an offer, but they didn’t even come out and look at it”. OOH, I LOVE WHEN THEY SAY THAT! I immediately take advantage of someone else’s stupidity and immediately set an appointment to come look. Then I use neuro-linguistic programming to let them know that I am a SERIOUS buyer and validate their thought that the other guy must not be.
Also, we have proven this next fact to be TRUE: If you go meet the seller in person and make the offer in person, you will convert more leads into contracts! Just one more reason to get off your seat and go to the house!
So what makes me an authority on all of this information? Well, I have kept serious data on my business since 2010, and I’m very aware when changes need to be made by the responses I’m getting from sellers and buyers. I was the lazy one that was just making offers to sellers over the phone without ever going to see the house. Was I closing deals? Yes. But my numbers started to decline once the market started to pick up. I noticed it immediately. One month went by and I blew it off. Another month of lowered conversion rates, and I took action.