ARE YOU LOOKING FOR MOTIVATED SELLERS? YOU HAVE OPTIONS VOL 1

If you are an investor or entrepreneur and are looking for motivated sellers that are desperate to sell their houses read on. There are many more options available than there used to be regarding HOW motivated sellers can sell their houses.
Today’s real estate news seems to be filled with doom and gloom. However, motivated sellers have a lot of options. Learn more about these options and how they effect you in this easy to read 3 volume blog.

In volume 1 we’ll discuss the most traditional option for a motivated seller to sell is “Seller Agency”. This relationship is between a real estate agent and a seller in the brokerage of homes. The listing or real estate agent and the seller enter a written contact that specifies: home price, duration of agreement, commission, rights & obligations, duties, etc. Most commonly the listing agreements are "exclusive sale". This means that the agent/broker earns a commission even if the seller finds the buyer (in an exclusive agency agreement, the agent/broker must procure the buyer to earn a full commission).

In return for this commission, the listing Agent/Broker agrees to: assist in setting a selling price and negotiations, advertising/marketing including posting in the Multiple Listing Service (MLS), arranging open houses, fielding inquiries and organizing showings, prepare contracts, manage final transactions, all while acting in the Seller's best interests. The Listing Agreement usually specifies that the Listing Agent/Broker agrees to split, the total commission with a Buyer Agent/Broker who represents the Buyer if that applies. The cost of a traditional broker is 4% to 7% of the selling price of the property, that amount typically being split between two brokers involved in the transaction.

There are an exorbitant number of houses on the market keeping agents/brokers very busy. At the same time there isn’t as much commission to be made in this industry so there are fewer brokers/agents. This doesn’t allow even the best to work as effective or efficiently as a motivated seller would like. This isn’t the best option for everyone especially not the truly motivated sellers.

How this relates to you as an investor or entrepreneur depends on the amount of time and resources available to you. There are tons of motivated sellers that are trying the route of “seller agency” but they are hidden within all of the other houses for sale. With enough time and follow through these “leads” can be converting into real estate deals, it is just a numbers game. The more you contact the more likely you are to find a truly motivated seller that is desperate to sell and excited to talk to you! This is probably the least efficient lead harvesting plan but it can work. Many sellers start with seller agency and progress into more aggressive selling techniques as they become more motivated to sell. To see an extensive list of marketing plans and ideas please see our other blogs.

For more on how motivated sellers options affect you, see volume 2 of this blog.

ARE YOU LOOKING FOR MOTIVATED SELLERS? YOU HAVE OPTIONS VOL 2

If you are an investor or entrepreneur and are looking for motivated sellers that are desperate to sell their houses read on. There are many more options available than there used to be regarding HOW motivated sellers can sell their houses.
Today’s real estate news seems to be filled with doom and gloom. However, motivated sellers have a lot of options. Learn more about these options and how they effect you as an investor/entrepreneur in this easy to read 3 volume blog.

In volume 2 we’ll discuss another option for a motivated seller to sell. For Sale By Owner, or FSBO is exactly as it sounds. It is the process of marketing, buying and selling of real estate by the owner without the representation of a real estate broker.

As you read in volume 1 there is a hefty cost associated with using a broker/agent. So, many sellers choose to sell via FSBO to avoid paying so much commission to a broker/agent. Exact amounts differ between markets but it usually ranges between 5% and 7%.

The only way for a motivated seller to avoid all commission is if the seller AND the buyer are both not represented by an agent. If a buyer who is represented by an agent is interested in a FSBO home, that buyer's agent may request the owner to pay a finder's fee for bringing the buyer. Many agents have pre-printed forms and pre-negotiate an agreed upon commission rate. This allows agents to have a larger pool of houses for sale to show to their clients.

To protect themselves, FSBO sellers typically will have lawyers draw up an agreement (for a fixed fee) often as part of legal representation for the purchaser. While kits found at office supply stores are relatively inexpensive, a poorly constructed purchase document could result in a transaction falling through or even in litigation.

The internet has completely altered the real estate market. Motivated sellers can now advertise their homes online and post them to FSBO websites and even the MLS as you will see in volume 3.

How this relates to you as an investor or entrepreneur again depends on the amount of time and money you are able to spend on sorting out the sellers from the motivated sellers. FSBO usually attracts a more motivated seller than traditional “seller agency” and they seem to be open to more creative ways to sell their house. However, there are still a large percentage of sellers that aren’t motivated enough for you to truly help them and make a worthwhile profit. If you contact enough FSBO listings by calling, bulk emailing or paper mailing you will find those that are desperate to close a deal.

For more on how motivated sellers options affect you, see volume 3 of this blog.

ARE YOU LOOKING FOR MOTIVATED SELLERS? YOU HAVE OPTIONS VOL 3

If you are an investor or entrepreneur and are looking for motivated sellers that are desperate to sell their houses read on. There are many more options available than there used to be regarding HOW motivated sellers can sell their houses.
Today’s real estate news seems to be filled with doom and gloom. However, motivated sellers have a lot of options. Learn more about these options and how they effect you, in this easy to read 3 volume blog.

In volume 3 we’ll discuss another option for a motivated seller to sell, called “Flat-Fee MLS”. It can also be referred to as “flat rate MLS” or “fixed fee MLS”. This is an extension of FSBO (for sale by owner) in which the property is listed in the MLS for a set fee or dollar amount. Flat-fee MLS sellers are not committed to paying a commission. The “flat-fee MLS” option allows the seller to cut out the listing broker's commission completely, thus reducing the seller's payment either completely or in half (if there is a buyer agent). The MLS is the main source of information for realtors and this allows motivated sellers access to this marketing tool without paying 5%-7% of the property sale in commission to agents. For that reason this option (usually costing $200-$500) is typically much cheaper than traditional “seller agency”. However a lot more time and energy has to be allocated by the seller in order to find a buyer and close a deal.


How this relates to you as an investor/entrepreneur is that this is going to be a more approachable motivated seller lead. Flat fee MLS clients are usually motivated sellers that see the big picture and will use less traditional methods in order to sell their property. This type of motivated seller is confident, comfortable selling without agents, and is eager to hear from buyers/investors/entrepreneurs. Often this type of motivated seller gets irritated with or doesn’t have the time/resources to do all that is necessary to find a buyer. Investor purchasing is a great way for them to be done with the sale of their house quickly and without all of the stress.

ARE YOU A MOTIVATED SELLER? YOU HAVE OPTIONS

So you’ve decided that your motivated to sell your house. There are many more options available than there used to be regarding HOW to sell your house.

Today’s real estate news seems to be filled with doom and gloom. However, motivated sellers have a lot of options. Learn more about these options in this easy to read 3 volume blog.

In volume 1 we’ll discuss the most traditional option for a motivated seller to sell is “Seller Agency”. This relationship is between a real estate agent and a seller in the brokerage of homes. The listing or real estate agent and the seller enter a written contact that specifies: home price, duration of agreement, commission, rights & obligations, duties, etc. Most commonly the listing agreements are "exclusive sale". This means that the agent/broker earns a commission even if the seller finds the buyer (in an exclusive agency agreement, the agent/broker must procure the buyer to earn a full commission).

In return for this commission, the listing Agent/Broker agrees to: assist in setting a selling price and negotiations, advertising/marketing including posting in the Multiple Listing Service (MLS), arranging open houses, fielding inquiries and organizing showings, prepare contracts, manage final transactions, all while acting in the Seller's best interests. The Listing Agreement usually specifies that the Listing Agent/Broker agrees to split, the total commission with a Buyer Agent/Broker who represents the Buyer if that applies. The cost of a traditional broker is 4% to 7% of the selling price of the property, that amount typically being split between two brokers involved in the transaction.

There are an exorbitant number of houses on the market keeping agents/brokers very busy. At the same time there isn’t as much commission to be made in this industry so there are fewer brokers/agents. This doesn’t allow even the best to work as effective or efficiently as a motivated seller would like. This isn’t the best option for everyone especially not the truly motivated sellers.

Real Estate Leads-You Get What You Pay For

While doing some research regarding what exact phrases people are using to search for “real estate leads” on Google, Yahoo, etc. I was surprised to see that the word “free” was quite common.

It makes perfect sense to attempt to find a free way to generate real estate leads. Especially since marketing is so expensive and time consuming. Truth is, you get what you pay for, regardless of the source.

There are two types of real estate lead sources that you can pursue, if your goal is to increase the number of leads you get. You can either generate the leads yourself, or you can purchase a lead generating service.

If you want to generate the leads yourself, I recommend that you set a realistic marketing budget and do a ton of research on the most successful marketing plans for your specific market. If you prefer to purchase real estate leads, keep the "you get what you pay for" principle in mind. When considering free real estate leads, remember that it is time, energy and money intensive to create and maintain a lead gathering plan. So why would somebody want to give those valuable leads away for free? It doesn’t make common or good business sense... unless the leads are junk, or there is a catch to the "free" offer.

There are Two Types of Real Estate Leads

Here's the difference between real estate seller leads that are worth paying for, and those that are marketed as being "free"...

• Motivated Seller leads worth buying because they consist of names and detailed contact information of people who are desperate to sell right now. They also include: sellers motivation, mortgage information, and full property details.

• Junk leads are usually nothing more than the names and contact information of people who have no intention of selling or urgency to sell their house. These are the "free" real estate leads you see offered on many not so reputable websites.

There is a clear difference between the two types of real estate leads. Motivated seller leads have an extremely high chance of becoming clients and money in your pocket. This is because you know that they are (A) in your local area and (B) looking to sell quickly. Junk leads are basically a waste of time and frustrating for both you and the person who you may contact-nobody wins.

Blitz Marketing Plan to Convert Pre-foreclosures to Seller Leads

How to successfully use marketing mailers to convert pre-foreclosures to seller leads.

Step 1
Do research to discover the best way to find lists of pre foreclosures in your area. The most important thing is that you market to leads that are confirmed to be 3-4 months behind on their payments.

Step 2
Prepare 5 pieces of paper marketing mail. Vary them to be sure to gain the attention of different types of sellers. Some are desperate and will call if they think you can help them, some are in denial and won’t do anything until it is crunch time. The letters/post cards should: be personal, stand out from junk mail, and state what you can do to help them.

Step 3
Use colorful envelopes and hand write the address and return address. This could be time consuming but will lead to greater success. It is recommended that you hire someone to do this for you to allow you to focus on the more advanced portion of owning a real estate investment company. You could hire a friend or family member that doesn’t mind writing out envelopes all day or a direct mailer company.

Step 4
Mail each potential seller lead 1 piece of paper marketing mail every 7-10 days. Keep good records to be sure that none of the leads fall through the cracks.

The economy is steadily getting worse and more people are behind on their mortgage payments everyday. Help them keep foreclosure off their credit and increase your success and profit at the same time. There are huge opportunities in the pre-foreclosure market, it just takes time and diligence to convert it to seller leads and then to cash in your pocket!