In this blog post of Escaping The Real Estate Newbie Zone, I’m going to talk about a “OPEN” concept I’ve been using in my business for the past few years to determine how motivated the seller is and will be to my offer. We all know that the more marketing you put out, the more chances you will have to make more offers. Out of the offers you get accepted, those deals will turn into big paydays. Those paydays turn into big smiles on your face like this.
So how do you get to put these type of smiles on your face, and get big paydays? Well for starters you need to find the right ideal seller. When I first got started flipping houses their were deals plentiful on the MLS. I could login put a few offers in and before the end of the day I would have at least 1 offer accepted. Unfortunately those days are long and gone :-(.
Now that we have transitioned to a sellers market, meaning their are more buyers than their are real estate deals on the MLS. It has become more challenging to find good deals. The best way to find deals now, is doing seller direct marketing. We cover more on how to set up your first direct mail marketing campaign in this training here.
However I want to break down a simple concept I’ve been using to find out if the seller you’re talking to will lead to a signed contract (deal). Once you understand this concept you’ll know when to focus more time and energy on what sellers, and when not to.
I call it the “OPEN” CONCEPT
Which stand for Oblivious, Pondering, Engaged, Need
Let’s break it down for you.
Oblivious – This is the type of person that they’re in no rush to sell their home. Maybe they came across you marketing letter or postcard, but not in a rush at all to sell it. They haven’t even thought of selling their house, however since your marketing came across their mailbox or desk, they wanted to see what you’re offering. Now this person will be extremely hard to deal with. Good luck putting a deal together, because typically they’re expecting HIGHEST & BEST OFFER. So this is likely not your ideal direct seller you’re looking for.
Pondering – Now is the type that they have been thinking about possibly selling their home. The conversation of possibly selling has been talked between the household. They can’t decide if they should sell it or keep the property. But maybe they’re looking at different websites to find out what houses are selling for. Their doing a little active research to see if it would be a good time to sell it or not.
Engaged- These type of sellers are actively looking to sell. They’re visiting different websites weekly to see how the market it for them to sell. Their even talking to different agents, different investors and trying to see who would buy their property. Most of the time they want of course the highest price that they can get. So they will shop around a few people before they make their decision. But they have made up in their mind this a good time to sell the property, they just need the right situation.
These of type of sellers are sometimes good, however you’re not the only person their talking too. So don’t be surprised if the deal you thought was going to be yours, ends up getting taken last minute by someone else before you get the contract signed, because someone presented a better offer. This actually happened to me before. I was pissed, but this was apart of the learning process for me.
Now the best type of seller to deal with, and probably the easiest person to sell your solution to them is the…
Needs- This is the person that they need to sell their house, they have a huge problem and this is the only option for them to solve the problem. The property has major repairs, they barley have any money in the bank, let alone they can’t afford to fix the property up. They have a underlying bill that has yet been paid, and if they don’t pay it now, their going to start garnishing their wages. So they need to turn their house into quick cash.
This is the person that just evicted the 3rd tenant, and their losing a lot of money, and not to mention it’s causing a lot of stress in their life which is effecting their personal life. They’re ready to get rid of the property ASAP so they can move on in their life. This is the best group of people you need to be targeting!
So if in the past maybe you have done some marketing in your real estate business . And you’ve wondered why they didn’t accept your offer? You’ve done everything that the course or training you’ve learned from youtube but still haven’t got any results. I want you to start using this formula. Which part of sellers are you dealing with? If they don’t have needs then automatically you should have a trigger that goes off and say ok this isn’t my ideal seller.
It’s not enough for a homeowner to say they just want to sell their home to decide they are really motivated. It needs to be something bigger.
Hopefully you got some good insight into this post. Please leave a comment below.