One of the most important elements of research for real estate goes beyond trends and statistics. There are a lot of agents and investors originating proposals. My problem with them is that many property or opportunity proposals do not offer a solution for the seller. Lack of an appealing solution (or exit strategy) is a bigger reason for not selling than a lot of people seem to think.
When coaching or consulting with an investor or broker about a specific property or opportunity, I always suggest providing at least one reason or strategy for the seller to benefit in a way other than financially. Sometimes an offer is only a partial solution while the other party needs a “full” solution in order to seriously consider going ahead with the deal.
Residential properties offer plenty of examples. At this time (as the article linked below shows), there are plenty of homeowners who would consider moving if not for current circumstances. One prominent circumstance is fear of paying a much higher mortgage rate. Another is the cost and stress of moving. An added concern is the worry about selling the current home promptly enough to be able to purchase the “new” home and coordinating the move.
These situations can be approached as opportunities for potential buyers to solve the “problems” of the seller to help clear a path to making their desired purchase. Investor groups looking for homes in pre-foreclosure are a prime example. Many of them tend to make their offer and hope it gets accepted or generates further negotiations.
Part of my strategy is to help them find ways their offer further benefits the seller. Give them at least one solution. Do what you can to show the seller that, for example, they could come away with enough cash to rent a nearby apartment for one year or make a down payment on a home they can more easily afford. Paint the picture with them in it.
Be ready with a “You may be paying a higher rate, BUT……” strategy to show you are looking to help them to advance.
My team and I are ready to help with your real estate success plan!
https://sdnews.com/frozen-real-estate-market-is-putting-some-people-on-ice/
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