How to Market Your Wholesale Deal for Fast Sale!
Recently, I was coaching an Executive One on One who had recently returned to our Coaching programs. He was remarking to me that one of the initial challenges he had faced as a newer investor was the inability to get a property sold.
He was able to get several properties under contract (a-b); but was unable to sell them. There were a few reasons that were out of his control, but by and large, it reminded me of how we all start out as new Realtors® or Investors. Getting properties under contract, only to have them fail to sell.
Your Enemy is My Enemy…
If that is true, that if Investing Realtors® and new wholesalers have similar problems (listings not selling, a-b contracts not selling) then there must be similar solutions correct?
The truth is stranger than fiction indeed. In this case, many of the same principles that a listing agent would use to solve the problem of a unsold home will be the same techniques you will use as a wholesaler to get your homes sold quickly.
Supposing that your equitable interest home in many ways is similar to a listing (they both are contracts, although the purpose is different); then you have a very self evident reason and rationale for learning how to sell your home fast.
However, in case you are new to The Red Pill Sales System or sales in general, let’s briefly cover some of the techniques you can use today to help get your deal under contract quickly!
6 Tips to Sell Your Home FAST!
1. Ensure they are Motivated!
There is nothing worse than working with an un motivated seller or buyer. If the prospect isn’t motivated to get something done, then you cannot help them. End of story.
Many Investing Realtors® feel like they have an obligation to spend time with the unmotivated. Why? Our industry is rife with time wasters, and those who have nothing else to do BUT waste time. They confuse motion with efficiency.
Remember at all times; you cannot want it more than they do. If your Buyer or Seller Prospect will not, or cannot express a clear desire to sell or buy NOW (within a pre-determined time), then you shouldn’t do business with them.
It is similar to pushing rope. Can you get it somewhere? Of course, but it takes longer.
2. Condition Matters.
In the world of the Wholesaling Investor, we pride ourselves on our ability to take properties in an “as-is, where-is” condition. For our buyers, for our Sellers, that is part and parcel of our expectations.
I would suggest to you however, that you change your approach. Perhaps your focus a bit? Understand that while we use “as-is” as part of our technique or “Unique Selling Proposition…” the condition does have a value in a real estate transaction.
Many times, you can add thousands to a transaction by simply cleaning it out! If you have the ability to close, or have the funding available to allow for a slightly delayed closing (private lender, personal funds, some forms of transactional funding).
3. Be #1 or #2 in terms of Price.
Get real clear, real fast on the fact that price is what sells a home. Nothing else.
You have to be the best value in the area. It’s not determined by price per square foot, nor ARV, but by number of contracts over time.
If you are receiving multiple showings, but no offers, you are close to your correct price. Probably within 5%.
If you are receiving no offers, no showings, and little interest; you are more than likely greater than 10% off of the correct price.
The only thing that sells a home is a contract. The only reason why you don’t have a contract is because nobody has taken the time to write it. The reason why nobody has taken the time to write an offer on it in this Internet world is because they don’t feel like it is worth the time.
Like it or not, they would rather make coffee than write an offer on your home. Hurts right? But when you think about it, it’s true! If your house is such a great deal, why aren’t they stepping out of the Starbucks line to call you about it?
Get clear on price. It’s your first, last, and biggest headline.
4. Have a Pre-written Plan.
Get a pre-written plan for yourself. If you are a wholesaling Investor or Investing Realtor® building a business, you need to have these plans in place anyway. They become part of your business system that you will sell when you retire.
Write out specifically you are going to do to sell each home. Postlets? Craigslist? Systematize out exactly what you do to sell your homes. That way you can have a checklist.
Items that you cold potentially include on your marketing plan would be the following:
a. Reverse MLS Searches
b. Contact all agents who sold or listed property in the area
c. New flyers/ canvassing the subdivision
e. Contacting all Absentee Owners for potential buyers.
An optimal plan would have two plans. One for right after contract acceptance, what you do, how you do it, where you advertise, etc. Then a secondary plan in case you need to reduce the price and re-start your marketing.
5. Get Agents Involved
As you can see from the previous point, I emphasize using Realtors® (unless of course you ARE one, in which case, use yourself!) to help you. Realtors® will not “steal your deals.” Remember, not all real estate agents are members of the National Association of Realtors®. Ensure your agent is a Realtor®!
By finding out who the agents were that have properties currently for sale or have recently sold properties in that area, you will be able to leverage that information into a sale!
By using The Red Pill Investor Scripts, you will be able to structure conversations that are helpful to you as well as the other agent to see if their customer may be interested in purchasing the home you are trying to sell.
One of the biggest questions that comes up when talking about dealing with agents in selling your property is the question of commissions. How much is enough, how to structure it, etc.
Because there are no set commissions, the way you can structure the payment of commissions varied. Some people say “Agent’s Add Your Fee On Top!” while others offer out a percentage.
I don’t know that one way is necessarily better than another. However, I do believe that humans are frail and like to have things spelled out for them. So many times, I believe that you as a Seller can offer many things that are of value, other than money!
Here are a few examples.
Bump the commission; Increase the cooperative fee from 3% to 5% or more. This is only paid upon close of escrow and will cause the home to stand out. It is better than a price reduction, and cheaper.
Add On’s; Offer to do certain things for the Buyer. Items like paying buyer closing costs, paying the buyer’s credit card, or other debts.
Sometimes you cannot reduce the price. In this case, look for alternatives like concessions versus price reductions.
6. Aggressiveness and Communication
The worst thing you can do is stop being aggressive about your goals. If your exit strategy with this property is to sell it as a wholesale deal, if it doesn’t quickly sell, our tendency is to get lax.
Fight the urge to be complacent about your goals to sell this house! It’s not easy! 85% of all FSBO’s fail to sell their home, or change their plans. That applies to Wholesaling investors as well! As a Red Pill System trained investor you should have a much better standard than that!
Communicate with the Seller frequently. Contact them weekly as you are awaiting to close escrow. That way, you will maintain open lines of communication should they have any questions or concerns.
Remember, a ounce of of prevention is worth a pound of cure! In this case, just calling every now and again to check in is enough to prevent them from selling the home again behind your back!
Systems: The Key To Success!
In an upcoming post, we will talk further about the systems that you need to have installed to ensure you have a duplicatable business. Remember however, without getting this very important step under control, it will be very hard for you to control the flow of business!
Think of your business as something that you want to be able to control as a spigot. You can do that with systems, which at this point is now extremely important. Why? Because you are now involving other people, their lives, their homes, and their dreams.
This is a very important step you have taken. By putting a home under contract and trying to sell it through the equitable interest, you are now affecting others. So take care and be responsible enough with your craft to ensure you learn everything you can do to sell it! If you want to ensure your chances of success, check into our Business Coaching Program. It is filled with the essentials from which to build your career!