It’s not surprising that when you do the things necessary to quickly establish trust with a seller, your ability to make a successful offer on a fix-and-flip property goes up dramatically.
You’ve worked hard to find a very particular kind of seller and property, and now you have to get them to agree to turn that property over to you. But look at the situation from their perspective. They bought this property, and now (as is too often the case) they are reluctantly in need of selling it and selling it quickly. But in a competitive fix-and-flip market, where multiple people may be vying for that same property with bridge loans for real estate and more, the buyer who establishes trust first will have the upper hand.
Here are five ways that you can quickly establish trust with a seller:
1) Express an awareness of their situation. As mentioned above, often times finding the right property at the right price is the result of an unanticipated situation in the sellers life. Rather than hide from it, show empathy with their predicament and let them know that you are here to help.
2) Share your value proposition. State why you want the property and the improvement steps you plan to take to make it better.
3) Show your ability to close. It’s highly likely that they are in need of selling the property and getting cash quickly. Your ability to show them that you can do both – with ease – will lessen their anxiety and motivate them to act.
4) Explain the improvement costs needed to fix the place. As you begin talking with the seller, they may start thinking that they can do this work themselves. If you share with them all the direct and hidden costs in getting a house like theirs ready to sell at market value, you will be seen as a trusted advisor and it should temper their enthusiasm to take such a path on their own.
5) If appropriate, share your expected profit. Let them know why you are doing what you are doing and what you hope to get out of it. This can communicate to the seller that both of you are in this together, and that you have no hidden agendas.
Whether you use one, two, or all five of the above steps, the key is to be honest with the seller right from the start.
Feel free to add personal touches like:
* Sharing how you’ve rehabbed similar properties and how well they turned out.
* Taking notes and pictures of the property while you are with the seller to show how much you care.
* Verifying facts as you go to show that you want to get it right.
* Making a decision once rapport and trust have been established and asking for the sale.
And when you make the offer, be sure to establish the purchase price, earnest money, closing costs, and an acceptance date. We will have more more share about closing steps in our next blog post.
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