One of the valuable and commonly overlooked tips I teach investors to use to beat their competition is called “working the Pendings”.
Realtors are taught to “work the Expireds” in hopes of getting new listings for their inventory. This is a great strategy for us investors also, but even more lucrative is working the pending and contingent listings from the multiple listing service. You do need access to the MLS or at the very least, an agent who will work with you to give you these lists.
It’s very simple, when inventory is low (or not), set aside marketing time as usual but use this strategy to call listing agents to inquire about their off market (pending or contingent) listings. Ask if their buyer or deal is shaky or looks like it may fall apart. Regardless, you’d like to send a back up offer for their file. Don’t forget to ask the same questions about any other listing they may have pending. It’s important to send either a Letter of Intent or actual written offer to the listing agent to be put in their property file. If you simply hope they will keep your name and number and remember to call you back, you will lose deals so don’t bother using this strategy. Your name and number must make it into that file to ensure you get deals.While on the phone with a receptive listing agent, take advantage of the opportunity to ask whether they have any other listings (preferably not yet on market) that you could make an offer on – remember to establish this relationship by telling the listing agent they get both sides of the commission.One of the results of applying this strategy is that when these deals fall apart for any reason, you are contacted BEFORE the property is placed Back on Market, giving you the opportunity to step into a deal as the savior so-to-speak, rescuing the seller’s sale and the agent’s commission. Often times, you will receive the inspection or appraisal reports done by the previous buyer, helping you to make your deal work.
Another result of using this strategy is avoiding a Highest & Best scenario and making it easier to get deals. The BEST result is increased profits!
editor’s note: Meet Sharon Wednesday, March 20th at the DREIA meeting. She’s a presenter in the early hour and the main program. For more information, visit www.DREIA.org or call 305-758-3133