Your two target buyers in this market are probably first time home buyers, and investors. You're dealing with two ends of the spectrum, and if you're experienced in the retail side, working with investors can be a different animal.
I've worked in non-traditional real estate, more specifically, for private real estate investors, for over 8 years now, with little to no involvement (by choice) on the retail side as an agent. (As in, I'm blogging this to avoid studying for my RE licensing course...sheesh).
Here are some insights about the investor mindset, and how you as an agent can attract and keep those buyers coming back for more.
1.) Keep it numbers
Most of your cash/investor buyers own businesses, have families, have other investments, and know there is opportunity in the market. You don't need to massage them the way you might with a FTHB. Show them a performing asset, and they'll show you the money.
2.) Sell on bottom line
Try to get away what the property value (might) be worth, because next month that's going to change. Not to say don't pull conservative comps to show what todays value might be, but unless you are scouring MLS and submitting 100 offers a week to find fix and flip properties, your investors are going to be holding these properties to rent. Break down their cash on cash return and cash flow over a 12-36 month period. Compare that to what might be their return say in an IRA, Mutual Fund, Etc., and why this makes more sense.
3.) Don't worry about the ripped up carpet, paint, and "pretty" add ons
You're not selling to the wife that will adore the spice rack and lovely jet tub in the bathroom where she can relax. You're selling to an investor that is going to ask, What do I need to do to bring this to rent ready condition, how much will that cost, and what can I get for rent? (again, cash on cash return, and cash flow).
Some investor buyers will prefer "Rent ready" homes, whereas others can easily see past the condition, and absorb the responsibility to fix it up in the exchange for a lower price. So if it's ugly, don't apologize! Get on the phone and sell it!
I hope this is beginning insight for the agents who are breaking into working for investor buyers, because there are going to be more of them!
What are you guys seeing with your investor buyers? Is it about the same?
Let me know your thoughts!
To your success,
Tracy Royce
"The Royce Of Real Estate" :)
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