Re: Deals in the newspaper? - Posted by Brent_IL
Posted by Brent_IL on October 07, 2003 at 01:18:37:
I?m sorry I didn?t state what I meant more clearly. I was referring to calling ads in the newspapers.
Strictly on the basis of the ratio of calls to deals, it?s more effective to advertise and have sellers call you. Many of the ones who go to the trouble to call will be ready to deal.
Calling ?For Sale? advertisements in the newspaper is an activity similar to the ?Look and track 100 houses through the sale and you?ll be an expert? rule popularized by Bill Green. When you talk to sellers over the phone you don?t have to give them your correct name or the right telephone number if you don?t want to, but you can stay sharp witted, practice handling objections, test different phrasing, and make lowball offers. Even when doing so, you can still look for the needle in the haystack, the motivated seller.
?Motivated Seller? is a poorly defined term because anyone who would thoughtfully consider the sale of their property is motivated to sell. Rehabbers will listen for vocal signals that the property is available inexpensively enough to warrant a rehab. I look for signs that the seller will continue to participate in some fashion after the closing. Foreclosure buyers will try to find out what it will take to bring the financing current. The questions you ask should direct the conversation to the areas that are most important to you. The color of the house can wait.
Earlier today I glanced at the posts on the Mobile Homes board. I don?t frequent the forum, but when I do get over there, I make it a point to read the posts of Dr. Craig Whisler. These are two excerpts from a reply he gave.
?There are two kinds of motivated sellers…one is ‘motivated’ to dump his problems on you and the other is ‘motivated’ to give you a good deal.?
?You need to learn to distinguish between the putative motivated seller and the true motivated seller. The first one really isn’t motivated at all. They are just distressed and shocked to find themselves hanging upside down from the flagpole in front of their bank.?
This is what you are trying to determine when you are calling newspaper advertisements, if the seller has what it takes to come to a mutual understanding with you. If they do not, churn ?em and burn ?em.
Ray Como?s suggestion was to keep a record of calls on which you collected information, and to index them by the last four digits of the telephone number
For example, if you called the numbers following, and the seller started to talk with you, you would index the information given and your impressions in this way.
312 987 6543
630 741 2589
847 895 6932
The info records are divided into area codes first. The 312 area code contains two records, 6543 and 3210. The 630 category also has two records, 2589 and 8521. Area code 847 has only one record, 6932.
I use a call sheet when I talk with sellers regardless of who calls first. When the seller starts to give information, I write the last four numbers of the telephone number in the top corner. This is the record I preserve if we don?t agree to meet. After a while, all the real estate ads seem alike. Before I make a call, I?ll look for that number in the file. If I find it, then I have to decide whether to call again or let it age for a few weeks. This makes it easy to observe time on the market, follow any price reductions, and track investors trying to flip retail. Some real estate agents don?t disclose their agency affiliation in all ads, but you will know them by their four-digit number.