It’s almost become a rite of passage to cross paths with other local real estate investors when meeting with a motivated seller. As soon as you see them, you know they’re your competition. This may or may not change your conversation with the seller, but it can become toxic in your business if you start worrying about your competition too much.
Regardless of whether you’re in a small market like Bentonville, Arkansas, or a highly competitive market such as Phoenix, Arizona, you’re going to have other investors talking to the same sellers as you are most of the time. This is especially true if you’re buying common lists such as those with high equity and over a certain age.
This is why it’s important to focus on the true motivations of the seller and tune out your competition.
You see, a lot of investors run the numbers and mentally see their potential profit. That’s their motivating factor and they fail to see the situation from the seller’s perspective. They don’t see the pain and struggle the seller is going through. Their goal, often, is to get the lowest offer possible and move onto the next property.
These types of interactions are why some people have a negative impression of real estate investors. They assume we’re all out to take advantage of those in tough situations, but that’s simply not the case.
Instead of focusing on the money, be the investor who listens to the seller. Find out why they reached out to you and listen to the background they provide. Connect with them on a personal level. This can lead you to discover other ways you can help them out other than by purchasing the property.
By listening to a seller’s needs, you can form your offer around how you can help them the most. It might be a flexible closing date, helping to clean the property out, providing cash for a deposit on an apartment, helping to hire movers, etc. From my experience, sellers don’t always choose the highest offer, but instead choose the all-around best offer for themselves, personally.
We’re in a people business. Never forget that.
I’ve seen it time and time again that a seller contracted with another buyer but didn’t understand the parts of their contract that allowed them an out of the contract. When I called to follow up with the seller, I would offer to review the contract and let them know of anything to be aware of. Many times, other investors added ways for them to cancel the contract, leaving the seller confused and helpless. It doesn’t take much of your time to follow up and make sure they’re in good hands and understand what’s going on. Sometimes, it might even earn you a new deal. Regardless, you know that you’re lending a hand to someone in need.
When you take your focus off of your competition, you’re able to spend more of your energy on the positive aspects of your business and the opportunities are endless. Don’t worry if they get a deal you had looked at. Have an abundance mindset and focus on educating and helping the seller.
As published on Forbes.com
