You meet with a motivated seller.
You explain that you’re able to help them out by purchasing the home quickly in as-is condition, but at a discount.
You let them know how stressful and costly fixing up the property would be.
You go above and beyond in clearly laying out their options and why it would make sense to work with you.
…but they reject your offer and let you know they’ll go with an option that gives them more money in their pocket.
What do you do?
Do you count that lead as “dead” and move on to the next lead?
You should watch the property and see if it sells, and if it does sell to someone else, what price it sold for.
This will help you evolve as a better real estate investor.
Because you can then see the habits on both the seller and investor side in your market.
Are homes consistently being bought at 75% ARV minus repairs or higher? Are they going unsold because the seller has unrealistic expectations of the value of their property?
It’s important to always be analyzing the market so that you can see the shifts and not fall behind in what’s going on.
If you have a virtual assistant or admin, this is a fantastic task for them to manage!
Every week or so, check the status on the properties that you didn’t contract on. Check to see if they’re on MLS, if they’re under contract, if they’ve closed, etc.
Any information you can get, the better.
Sellers say “no” for various reasons.
- They aren’t ready to sell, just yet
- They think it’s worth more than you think
- They’re still getting “feelers” out to see what other options will offer
- They don’t trust you (or investors in general)
- They owe more on the mortgage than your offer
You can break down some of the above barriers. If it’s still available after a week or two, call them and check in and see how everything is going. Don’t give them a sales pitch, but instead, let them know you’ve thought about the property and was curious if there’s been an update. If there hasn’t been, see if there’s any way you can be of assistance.
If they say that they are selling to someone else, kindly ask what price they were able to agree on.
Keep checking the status of the property until the property has new ownership.
That… is when the lead is officially “dead”.