In Episode 157 of the Wandering But Not Lost Podcast, co-hosts, Jan O’Brien & Matt Emerson discuss 5 ways that you can get listings now in spite of the extremely low inventory.
1. Call your sphere of influence / database!
We have been talking about this one for months! Just call and check-in with your SOI, past clients, people you know! How are they doing, what might have changed for them? Have you done this yet?
Who has investment properties?
Who may want to sell and move closer to their family?
What may want to sell now while the market is hot and they can get top dollar? Some people are already doing this and either renting in hopes the prices will come down or purchasing something new or meets their needs now.
2. Non-Owner Occupied / Investor Properties
With the tenant eviction moratorium expiring March 31st and the hot market, many investors may be ready to cash out for top dollar, especially if they believe that prices will come down as the economy recovers and interest rates increase.
“Hi, it’s [Your name] with [your company]. I was looking at your rental property at [insert address here], and I’m curious… With everything happening in the world today, have you had any thoughts of cashing out at these prices?”
If they say no, be sure to ask about any other properties they might own that you might’ve missed.
“Do you have any other properties that you’d like to trade up or 1031 exchange at this time?”
- Ask the title company for a list or pull from county records. Look at the mailing address vs. the property address. That will usually identify an absentee owner unless the mailing address is a PO Box.
- Send a letter to the owner advising them of the change in the market. This is a great time to sell. Include a sample CMA showing the market increase in the last 2 years. Hand address the envelope. There is a much higher open rate on hand addressed mail over labels. Check all sources for contact information. Sometimes you can find a phone number.
- Suggest doing a 1031 exchange so they can avoid capital gains. Provide some information about 1031s and offer to meet virtually to goover the process and benefits.
- The tenant might want to purchase the house.
- Another investor might buy the property.
- Be sure to add the owner to your database even if they say they aren’t ready. They will be someday. Keep in touch and nurture that contact. Send them your monthly newsletter.
3. “I may have a buyer” letter
Mail it in a hand-addressed envelope with no logos on the envelope and a real stamp.
Script or Letter
I’m currently representing a wonderful family/couple/future homeowner (describe them in detail) who desperately want to (what is motivation for buying now) in (specific community or type of property), and as you might know, there are none available.
I’m writing because I’m just wondering… Have you had any thoughts of selling?
If you do have any interest in selling your home, I would be happy to arrange a one-party showing of your property.
Please contact me at ___________ to discuss this further.
Note: Add a colorful sticky note with your name and phone number on it along with your business card.
4. Target Marketing
- Identify possible areas to target market
- 55+ communities
- Down size, right size or move to single story
- Need/want to move in 1-3 years
- Want to move closer to family
- Reach out to Data Provider (Title Company, Remine or any Data company like https://www.getivydata.com/) to obtain contact info on homeowners (potential sellers) who have lived in the home 10+ years AND have 2,000 sq ft or more, OR a two-story home - OR any other variables you deem important
- Make the initial connections - letter, email, call, video email
- Create a campaign to keep in touch at least monthly: call, text, email, video and mail with valuable relevant information.
- Organizing & decluttering
- Renovation projects that make sense prior to a sale
- Buying/Selling without moving twice
- Tax consequences of a sale
- Resources for prep or repair of the home
- Safely listing & showing during COVID
- Estate sales & junk haulers
- 55+ communities in your area and what they offer
- Out of area agent referral info
Downsizing Sample Letter
Hello, my name is [NAME] and I am a [REALTOR®/AGENT/BROKER] with [COMPANY]. I specialize in helping homeowners transition from a larger family home to something a little more manageable.
There are many advantages in downsizing to a smaller home: lower mortgage payment and property taxes, reduced utility costs, lower property insurance, and enjoying more of your income.
When you get ready to downsize, please give me a call at [PHONE] or email me at [EMAIL] to schedule a no-cost consultation.
I look forward to helping you with your real estate needs.
Amazing Time to Sell Your Home
Dear (Potential Seller),
Hoping that this letter finds you in good health and spirits. I am reaching out to you today to share with a shortage of homes on the market—it is an incredible time to sell. The present inventory includes only (# of homes) for sale. Sellers are benefitting from the influx of buyers who are looking for homes coupled with historically low mortgage interest rates. Many of these buyers are willing to pay over the asking price, depending on the condition of the property and the home’s amenities.
Please allow me to set up a visit whereby I can share with you this great opportunity. You can call or text me directly at (cell phone #) or email me at (email address) with a preferred time and date.
Let me know if I can answer any additional questions and/or expedite any request.
Looking forward to visiting with you in the very near future.
Thanks a bunch for your kind attention.
5. Notice of Defaults
Notice of Default / Pre-Foreclosure System
- Contact your preferred Escrow/Title Company or Data Provider to see if they provide a Notice of Default (NOD). Ask to be put on the NOD delivery email list.
- Other sources of NOD lists (Fee-Based) RealtyTrac, REDx, Core Logic
- From the daily or weekly list you receive, review the properties and select the properties that are in your service area and the you want to work with.
- Hand address all the envelopes needed for that day/week.
- Insert NOD letter with your business card into the envelope and mail.
- When possible, obtain phone numbers for these property owners and make follow up calls to those that a letter was sent.
I understand, through public records, you have had some recent difficulties making your mortgage payments.
As I am sure you are aware, America has been hit hard, due to COVID 19 and it has been very difficult for most everyone. Some people have been put on temporary furlough, laid off, or hours severely cut down, and it must be very scary when the bills arrive in the mail.
If you currently have equity in your home... even if you don’t, foreclosure is a terrible option and can be devastating financially!
You have options and I can HELP! Contact me for an absolutely FREE, NO obligation consultation and let me help you.
The worst thing you can do is nothing... don’t let the banks/mortgage companies win. Take back control of your financial future, NOW!
Notice of Default Call Script
Hi, my name is _______________ , with [Your Company Name]. The reason for my call is to see if you received a letter that I sent to you a few days ago.
If yes: Great! When would be a good time for me to come over and show you the options you have to protect your hard-earned equity? I am available this evening, or is tomorrow morning better?
If no: No worries, I understand through public records that you have had some difficulties making your mortgage payment?
All of us, over the last year have had difficult times for one reason or another. However, letting the mortgage company take your home and all your hard-earned equity would be a terrible option.
I am available to come over and sit with you to explain all your options. I am available tonight, or is tomorrow morning better?
You will need to adapt to their individual circumstances, build rapport and trust.
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