Estate Agents: How to find Below Market Value Part 1
By John Lee
ESTATE AGENTS: How to get them on Side and get them below market value
Why estate agents?
Everyone seems to be doing Google marketing and leafleting to find below market value property there acan be alot of competition. This doesn’t mean you can’t get deals doing this, it simply means
there’s more competition and the less the competition you have the better chance you
have of getting below market value property deals. Also estate agents come across property everyday and in my experience come across great opportunities for developments and below market value property. Get in with the gate keepers and you will do well.
What the potential of getting below market value?
Well let’s say the average property price is £200,000 you have 20 estate agents on side
you only need these agents to give you 1 property a year each. If you were to buy these
properties 20% BMW and you were to sell them all you would make £800,000 less costs from buying the property below market value.
So what do you need to do to get below market value property deals from estate agents?
There’s a lot to tell if your interested in going through this is greater detail please see
below. Here are a few of the things that I have worked for me:
1. Having the right mind set
2. Persistence
3. Making it about them
4. What’s in it for them
5. Asking the right questions
Having the right mind set
A lot of people I speak to seem to be intimidated by estate agents, this all depends on
your outcomes. Having clear outcomes will enable you to ask the right questions and
depending on your expectations will not be disappointed with rejection. There’s various
ways of positioning yourself to make them need you more than you need them. You will
not convert every single estate agent so don’t be sad if they dismiss you. If they do this
your outcomes may not have been clear to start with.
Persistence
In the past 8 months I have personally visited about 700 agents’ visits from that I have had
5 good below market value deals. Do not give up if you are starting out and if you are low on funds and time
rich then this is a very good method because it’s free to source bmv deals. I averaged about 10-20 agents a
day 3 days a week.
The most recent deal from an estate agent got back to me 4 months
after I visited them. Property value is £285,000 I bought it for £230,000.
Making it about them
Most I’ve dealt with operate on commission basis, I find most of them not all very short
termed. Most have no idea of BMV so when you’re explaining it keep it very simple,
some may not want to believe that people sell “X” amount BMV (below market value). We came across an
agent in Twickenham and they said no one will ever sell their property 20% BMV this is
a very strong market and he was right. Right about it being a strong market, but guess
what? 1 mile from this estate agent we picked up a 2 bed flat for £188,000 below market value it’s now on the market for £270,000 we’ve have an offer of £272,500. Don’t let anyone tell you, you
can’t get deals in affluent areas.
What’s in it for estate agents?
This is the question you should ask yourselves in any situation when involving business,
think of some ways in which you can make them more money, the more money you
make them the more business you will get. They get people walking in everyday asking
for x, y and z. Do not be another number. Get their attention and get them to like you.
Asking the right questions
As I said most agents are not aware of the motivated seller so it’s your job to educate
them some may have a problem taking this in and most will say they never come across
people like that. If they say this, a good question to ask would be “how interested would
they be in finding these types of people?” It’s not the properties your after it’s the
people’s motivation.
So many times I have seen motivated sellers on the estate agents who are willing to sell below market value and on their books and they don’t even know it. Ask them how often they come across people who
have to sell quickly?
Or if you do ask about properties ask them what properties have been on their books for more than 3 months? Once you get the lead from an estate do not have them negotiate for you unless you think
they are capable,
Most estate agents operate on a commodity level. How many time have
you heard them say what’s your price range? Get them to pass you their details and you
negotiate from there.
Negotiating directly with the vendor makes things much easier (If you would like more information how to negotiate hard to get you more below market value deals
Please give me a call on 07817 735 548 or john@completein28days.com
For more PDF’s on sourcing BMV deals, Negotiation, Deal Stacking, Closing the deal please contact
me
If you know anyone who might be interested in learning how to get great below market value deals from
estate agents in GREATER DETAIL please call on 07817 735 548. Below are
some of the things I teach on my 1 to 1 mentoring and case study
• Introduction to estate agents
• Why estate agents and what systems to use
• How to prepare for your journey
• How to Prepare before stepping through the door
• Deciding on your outcomes
• How to make them like you with in 10 seconds
• How to Speak to the right person
• Why never to dismiss the juniors
• How to access their state
• Which way to Position yourself
• What’s in it for them (VERY IMPORTANT)
• What to look for
• Asking the right questions
• How to subtle suggest a finders fee
• What are tear 1,2 and 3 properties
• How to get estates excited by asking unconventional questions
• How to over come their most common objections
• How to differentiate between you and the others
• How to speak with the area directors or the guys who make the decisions
• How to get the estate agents to give you the first pick of the deals
• Double pitching
Case Study 22% below market value
Location: Feltham
Type: 3 bed mid terrace
Current market Value: £220,000
Bought for: £165,000
Spent on refurbishment: £0
Resale price: £212,000
BMV: 22% BMV
Source: Estate agent
Vendor Motivation: Repossession
Solution:
• Pay off arrears
• Pay his estate agent fees
• Complete in 2 weeks
• Provide trust and give them confidence
• Let him stay in it a few weeks after resale
• Stop repossession
Problems encountered:
• Small retention
• Down valued
Learning curve:
• Getting good deals from estate agents
• To walk your talk
• Getting solicitors and brokers to work for you
• Keeping vendors happy
• Structuring
• Refurbishment
• Repossession process
If you Have Any questions Call me on:
john@completein28days.com
www.bmvtips.com
