When working with distressed homeowners, there are several key traits to working out a respectful deal that profits both sides and keeps the transaction professional.
I’ve discussed helping distressed homeowners before, and if you need a refresher course on the basics of putting together a deal with tact, please CLICK HERE to get your tips.
Now, let’s talk about where to meet a distressed homeowner to discuss terms and sign the purchase and sale agreement. Because the sale in question is their property, a homeowner may expect that the meeting will take place in their home. For reasons we’ll discuss, this isn’t a great idea.
I recommend meeting them in a professional office setting.
By signing in a professional office setting, you can maintain control over the situation. When you sign in their home, you convey that you are available to them on their schedule, giving them control.
You also convey the importance of them coming to you, securing the fact that although you may have reached out to them in the first place to offer on the property, you aren’t going to chase them down to get it.
When you meet at their home, you are also giving them more time to “think” about it because they don’t have to physically do anything or go anywhere to have this meeting. By removing them from their home, you give them an actionable step to show commitment–both to you and subconsciously to themselves. Additionally, if you meet them at their home and they decide to do business with you, they will expect you to come back.
By meeting in a professional office setting, you are setting the standard that you are a professional and giving the homeowner peace of mind.
If you don’t have the option of a professional office setting, you can use the middle ground of a location such as a coffee shop. Don’t let this be your first option, but if it helps you avoid meeting at their home, it’s a better way to go.
What is the purpose of this meeting?
First, you need to introduce yourself; who you are and what real estate services you provide. Then, listen to their story and find out their needs. Educate them on what you do and how. This is your opportunity to align their needs with your services and make the option of having them sell you their house a no-brainer. Most importantly, your goal for this meeting is to get the purchase and sale agreements signed!
When you meet at your office, stress how important it is to have the paperwork signed in order to get the ball rolling. They’re likely going to be hesitant, but if you let them bring the paperwork home, chances are you’ll never hear from them again. Remember to assure the homeowner that they are not signing their life away, and should be comfortable with the process. They may not be as motivated to work toward a solution for losing their home as you’d think, so it is your job to explain to them why they should be.
Before you leave the meeting, be sure also to ask these key questions:
– What condition is the house in?
– Is there anything else I should know about the property?
– Do you have any contact information for your lender?
– Are there any other questions I can answer for you before I leave?
When in doubt, put yourself in their shoes. Remember that many owners who are on the brink of losing their homes are emotional, desperate, and/or in denial. You must be aware of their position and ready to step forward with confidence.
Choose a professional office setting to meet, make sure they understand the benefits of working with you, and get them to sign the paperwork. From there, they can move forward with one less trouble and you can work toward a profitable deal.
If you’re ready to kick it up a notch, join us for a FUNDING TOUR and we’ll provide you with a $250,000 pre-approval letter to support your next transaction. For more information on what a FUNDING TOUR is and why I believe so strongly that you should attend that I’ll pay for your $497 seat, visit fundingtour.com or call 800-533-1622.
To Your Success;
Lee A. Arnold
The Lee Arnold System of Real Estate Investing