After everything we’ve told you about Instant Offers, while the feedback has been largely positive and thankful, we’ve also heard questions and comments still riddled with fear. We’ve taken the most frequently asked questions about Instant Offers and compiled quick and easy guide to affirm and further explain — especially when it comes to the financing.
- Are Instant Offers and iBuyer programs just a fad or are they here to stay?
It is already happening. They are here to stay and FUNDED versus the previous iterations. ACCEPT that this is the new reality. As a listing agent you MUST take action.
- Is it ethical/legal/okay to create my own Instant Offers program, even with little experience and no funding of my own for such a thing?
YES. We’ll show you how to create your program from “grass roots.” Remember, YOU don’t have to buy hundreds of houses like the big guys do.
- Is it ethical/legal to create the Lead Generation model that you recommend, even if I will rarely actually buy a property through an Instant Offer?
YES. Remember its predicted that that only 20 to 30% of homeowners will actually close using an Instant Offer, but you NEED and WANT 100% of the listing leads. You first must make your phone ring with opportunity, next prequalify as usual, discuss how your Instant Offers works and proceed based on the prospect’s answers.
- Okay, how do I get the investment money together? Let’s say I have little to no experience in this.
- Get yourself pre-approved and BECOME an investor. You can buy up to ten homes using conventional financing. Structure your IO so that you are buying with a discount of at least 12%. In markets where there are no other competing IO options your offer could be 20% less than retail. Most banks require 20% downpayment in investment units.
- Connect and/or reconnect with all investors you’ve met in the past, this includes past clients, people in your COI.
- Connect with your local ‘We buy ugly houses’ and, ‘We pay cash for homes’ investor groups. There are more than just these in your local market. WantToSellNow.com, etc. (Maybe NewWestern.com) Know who these companies are, how they operate, and how commissions are handled.
- Builders are often investors or have their own intake programs. Leverage existing builder relationships. Know who takes homes in and how their programs work. Would they buy at a 12% discount if you brought them the deal?
- Find local investor groups on Facebook.
- Use MeetUp.com to find investor groups, and/or start your own.
- Network with property managers and know who has investors at the ready and who likes rentals and flips.
- Create a Bomb Bomb video and send it to your own past client/COI list, asking who would like to be part of YOUR investment club.
- Create your one-page, stand-alone insert for your Pre Listing Package, explaining how your Instant Offer works. Keep it simple.
- Offer within 72 hours
- Offer from qualified investors
- No obligation to take the offer
- Some restrictions apply (move up to one of your listings?)
- Sample net sheet based on 12% less than fair market value
- How is fair market value determined? (your CMA / appraisal if they wish)
- Close per their needs
- No showings necessary
- Possible as-is/no repairs required
- Combine with Guaranteed Sale: if not sold within 90 days, they may opt to take the Instant Offer, etc.
Still unsure about how to take your business to the next level, with Instant Offers or by any other means? Schedule a FREE 1-1 Coaching Call with us today!