There is no such thing as an easy deal in real estate. In most cases, you will work with many leads and end up with only a handful of motivated sellers in real estate deals. If you don’t handle these leads the right way, you will end up wondering what went wrong. Many motivated sellers are looking for the right person to work with. It is the little things that make all the difference. You spend time and money on marketing to capture leads, and you need to work them to the fullest. To get the most out of your marketing, and to convert leads into deals, there are a few things you need to do:
- Set up a dedicated phone line: If you market to 1,000 homeowners, you should expect your phone to ring. Most investors are too busy trying to handle current deals to answer the phone every time it rings. By setting up a dedicated marketing phone number, you will know which calls are new leads and which are for current deals. Make sure that your number isn’t an 800 number. Sellers want to work with people that are local, and an 800 numbers give the feel of a big company.
- Answering service: Regardless if you have five deals going on or none, you need to capture every call that comes in. If you are too busy to answer your phone, you need to set up an answering service. It has been proven that most people that call will not leave a voicemail. A majority of those people will not answer their phone when you call back. By having an answering service, you will have a live voice answer every new call. This alone will greatly increase your chances at getting the deal. If you provide a script you will also be able to pre-screen everyone that calls. There are a lot of sellers that want to kick the tires without taking any action. Calling these sellers back can waste thirty minutes of your day without getting anywhere. A pre-screened lead that knows you are calling has a much higher conversion rate. A good answering service can do that for you.
- Get the information you need: The first conversation you have with a motivated seller is the most important. You need to find out what their motivation is and what their expectations are. Find out timeframes and what numbers they have in mind. If you are dealing with multiple leads, your time is important. The quicker you can figure out if you have a real deal or not, the sooner you can plan your attack. If the seller doesn’t want to move for nine months, you know you have a deal that may not work. It is important to remember that just because a seller may have to sell – it doesn’t mean they will. There is nothing you can say that will make someone sell, unless they want to. The more information you can gather from the initial phone call, the better off you will be.
- Meet at the property: It is important that you schedule to meet at the property as soon as you know you want to pursue the deal. The longer you wait, the greater chance that they may get cold feet. Let the homeowner know that you will need a few minutes to walk the property and check things out. After you have finished, sit down with them and review what you have already talked about. You should expect many questions. This may be just another deal for you, but it is everything to them. They are feeling you out to see if you are someone they want to work with. If you get frustrated or annoyed with the questions, they will work with someone else. Answer the questions as honestly as possible. There is nothing worse for an investor than working on a deal for months and having it fall apart months down the road. The more honest and upfront you are from the onset, the better chance you have at closing.
- Set firm dates: You can’t expect to have an answer by the time you leave the property. Instead; what you should do is give firm dates for the homeowner to respond by. They may be interested in selling, but the further they push things back, the less likely they are to act. You will know they are serious if they follow the dates you provide. There is a fine line between pushing them to an answer and expecting a decision. You want to push the deal along at all times. Setting firm dates will help you do that.
If you handle leads the right way, you won’t be overwhelmed. You never know which incoming call will lead to a deal. The deals you expect the least from are often the ones that turn into deals. Marketing to motivated sellers can be quite expensive. It is important to maximize your return and convert leads into deals. By taking on every call as it comes and getting as much information as possible, you can do this. Motivated sellers are most likely going to work with someone. If you treat them the right way, it might as well be you.