There is a big step between accumulating leads and actually turning those leads into deals. Running a successful marketing campaign and getting your phone to ring is great but the name of the game is conversion. You need to be able to convert at least two out of every ten new leads into a deal. 20% may not seem like much but out of those ten leads only five may be really interested in selling. Those are the leads you should target and ultimately be able to convert. Conversion is much more about you and your personality than any specific number you can offer the seller. By making them feel more comfortable you greatly increase the chances they will want to work with you. Here are six tips to help you convert more seller leads into deals.
- Initial Phone Call. The process starts with the initial phone call. The most basic step is actually answering your phone. If you took the time and spent the money to generate leads you should make answering your phone a priority. A seller is more open to talking to you if you answer the phone instead of calling back. On your initial phone call you need to gather as much information as possible. You should have a script or a series of questions to ask to get all of the information you need. At the end of the conversation you should have a pretty idea of what kind of deal you have and whether or not you want to move forward.
- Don’t Be Intimidated. For many investors the process of sitting down talking to a seller can be an intimidating one. They fear it so much that they actually start avoiding new leads all together. Like anything else the more you do something the easier it becomes. That being said there is always something at every seller meeting that you will see for the first time. The reality is that you don’t need to know everything about the property or the process to sit and talk to a seller. There is nothing wrong with saying “I don’t know”. In fact you will actually gain more credibility by being straightforward and honest. There will be times when you feel in over your head but you can’t be intimidated talking to any seller.
- Walk The Property/Ask Questions. Prior to sitting down and discussing any numbers you should walk the property to confirm the information from your initial conversation. Not only does this give you a chance to see the property but it offers an opportunity to get to know the seller. The seller is feeling you out and wants to know your motivation just as you want to know theirs. By asking questions to get to know the seller you establish a quick rapport. Something as simple as asking about their family, a local news event or even a sports team can help break the ice and make them feel more comfortable. This level of comfort will help you during the next stage of the process.
- Explain The Process. Sitting down with the seller and going through the numbers is the most intimidating part of the process. Instead of quickly going through things take your time and explain the process. Embrace the fact that they are going to have questions and will frequently interrupt you during your sales pitch. It is always best to take a proactive approach and think of any potential questions they may have and address those upfront. Your goal is to make them feel comfortable and confident enough with you that they want to move forward. By explaining the process and slowly answering questions you can gain that level of trust.
- Get Specific With The Deal. The goal of any seller meeting is to leave with a signed contract. In most cases the seller will need some time to digest everything you throw at them. It is important that you always explain exactly what you want using specific numbers. Don’t be afraid to ask if they would accept a certain number. If they give you a definite no you can explain all of the reasons why their home may not be worth as much as they think in a polite manner. Most of the sellers you speak with are going through a difficult time and may be emotional. Never take something negative that the say to heart. It can be difficult hearing the truth and facing the music. By the time you leave you should have a good idea of where you stand.
- Follow Up. Prior to leaving the meeting you need to set a definite follow up time and date. Regardless of how you think things went you always want to follow up a few days after the meeting. This gives everybody some time to think things through. When you follow up you don’t want to push for an answer but you need to know their motivation and what they want out of the transaction. If their goals are unrealistic you can shift your priorities elsewhere. What you never want to do is completely give up on a deal. You should always maintain at least some level of communication. You never know when a seller will change their mind at some point in the future.
By creating a rapport with the seller and taking your time during the process you greatly increase your chances for conversion. Converting just a few more deals will greatly impact your business and your bottom line.
