How do you find motivated sellers in a low-inventory market?
When you launch your real estate career, one of the first groups of clients that will contact you will be real estate investors asking you to find motivated sellers for them. The investors want to buy homes at 10% to 30% below market value, so if you can find them a seller open to taking a price cut for a quick cash sale, you’ll instantly have a new client.
We’re currently in a low-inventory market, so finding motivated sellers can often be easier said than done. Here are five tips to help you get started on your search:
1. Contact the marketing rep at your favorite title company. Ask them to put together a list of absentee owners, out-of-state landlords, homes with liens, and homeowners in probate.
2. Create a marketing campaign for each person on the list. Include direct mail, a text messaging campaign, an email campaign, and a website landing page for them to visit.
“Finding motivated sellers can often be easier said than done.”
3. Launch your marketing campaign and wait for a reply. Whether your campaign is direct mail, email, or another platform, it will have to be repeated multiple times for you to get a reply. I used to send out direct mail to sell products; the first time I sent out mailers, I wouldn’t get any replies, but by the third mailing, my reply rate would be up by 2% or 3%.
4. Get the prospective client on the phone. When you start getting replies to your marketing campaigns, call them and try to understand their situation. For example, if they say they want to sell their home for $350,000, dig a little deeper to find out why they need that price. Do they need it for another investment, or is there a personal reason they need it? Ask questions that help you understand their motivation to sell, and create a connection with them so that by the end of the conversation, you have a plan to collaborate with them.
5. Have a follow-up system in place. After each conversation, add your notes to your CRM software and the time you plan to follow up with them. If they say they’ll be ready to sell in six months, follow up with them in three months. Don’t pester them, but make sure to put your name in front of them several months before they’re ready to move.
If you want to learn more about how to find motivated sellers in a low-inventory market, schedule a free strategy session with me at www.JimAmen.com. There, you can also check out our upcoming events or sign up for a training class. Be sure to follow me on Instagram and TikTok for additional free agent tips!