When selling a property, you need a winning strategy as a Realtor. But the approach that you choose to utilize when dealing with a real estate investor will be a bit different from the strategy that you would utilize with a typical homebuyer who’s searching for their dream home. So how can you seal the deal with the next investor who books a showing or comes to your open house events? That’s precisely what we’ll explore in today’s article from Southern Connecticut Coldwell Banker Realtor Judy Szablak and founder of Szablak Consulting.
How is a Real Estate Investor Different from Other Buyers?
Unlike a typical homebuyer, the average real estate investor is in it for one reason and one reason only: they’re in it for the money. Investors view this type of transaction as a business matter, so the focus is on turning a profit.
The key differential between an investor and a typical homebuyer is their state of mind. A typical homebuyer is seeking a place where they’ll likely live for several years or longer. Their personal preferences and opinions about the property matter. There’s also an emotional element involved in the home sale process, as you’re prompting the buyer to envision themselves living in the home .
An investor, on the other hand, is all business and their personal preferences matter very little since they’re not going to be living in the property. Hard facts and the bottom line matter most to this type of buyer.
It can be helpful to understand whether the investor is seeking to acquire the property as a rental holding or whether they plan to perform a “fix and flip,” whereby they perform upgrades and repairs, then re-sell the home.
There are some key differences, as an investor who’s seeking a rental holding may prefer a property that’s easy to subdivide into units and is located in an area that will appeal to renters. These issues are less relevant to a fix and flip investor, who will be focusing on the property’s flaws and how much it will cost to get the home into more salable condition.
Tips for Selling to a Real Estate Investor
If you’re new to real estate sales or simply haven’t dealt with many real estate investors, you’ll want to consider the following points:
- Don’t focus on the emotional impact. Investors are focused on the bottom line, so you don’t need to prompt them to envision themselves in the house. Instead, take a more facts-centric approach.
- Do focus on the features that would make it a good rental property, such as the close proximity to the commuter rail, the sizable parking area and the potential for easy subdivision to create multiple living spaces.
- Do focus on the areas that could be improved or revamped if the investor is seeking to perform a “fix and flip.”
- Do highlight any transactional conveniences that the seller is willing to offer, such as a quick closing.
- Don’t place lots of emphasis on the aesthetic aspects such as paint colors. Investors aren’t as interested in this type of thing; they’re more focused on what updates or repairs will need to be made and how easily they can flip or resell the property.
- Do emphasize any recent updates or upgrades, as this is one less thing that the investor will need to address!
- Do mention local property value trends if it’s relevant. For instance, if the area has seen a dramatic rise in property values in the past year, this trend may be especially interesting to an investor.
In all, the bottom line is to keep the investor’s mindset and their goals in mind when you show the property. They’re not emotionally-driven like a typical buyer; they’re more business-driven, which is a key distinction. With these points in mind, you’ll find you’re far more effective at sealing the deal when you show a home to a real estate investor.
Tips to Grow Your Career With Szablak Consulting Founder and Realtor Judy Szablak
Getting started in real estate and setting off down the path toward success can be a real challenge. But this is where you can benefit from working with a career consultant like Judy Szablak. She can provide new real estate agents with valuable insights and recommendations that give them a competitive edge in today’s real estate industry. A consultant will not only offer advice and recommendations, but she will also share her valuable knowledge and expertise on topics such as online marketing for Realtors and social media marketing to get leads, to sales motivation tips and other tips to sell more homes!
Aspiring top producing real estate agents may also with consider reading Realtor Judy Szablak’s related article with advice to help you enjoy a long lasting real estate career.
If you’re ready to take your career to the next level or are just starting working as a Realtor, turn to real estate professional and consultant Judy Szablak, founder and CEO of Szablak Consulting and Best Agents Online, LLC. With Judy’s guidance and expertise, you’ll take your career to incredible places, finding success that’s beyond what you believed to be possible!
If you’re a real estate agent who is ready to elevate your sales or if you’re a realty owner or manager who’s seeking a dynamic, expert coach to bring a new element of professionalism to your sales team and your brokerage firm, turn to Realtor Judy Szablak of Szablak Consulting. Call 855.438.5839 or complete the booking form.