Real estate agents get income depending on how many qualified buyers they match to their perfect home. In the real estate market, there are usually more buyers than sellers.
Therefore, as a real estate agent, you need to ensure that you remain vigilant in finding listings to increase the chances of closing a deal for your client. There are different ways you can generate listings, but one of the most effective ones is sending an ‘I Have a Buyer for Your Home’ letter.
If you are a real estate agent beginner or want to generate more listings, here is a guide on using an I Have a Buyer for Your Home’ letter.
What Is an I Have a Buyer for Your Home Letter?
This letter tells sellers you have a buyer interested in moving into the neighborhood or interested in the house they are selling. When writing this letter, personalize it for the market and community where the house is in.
These letters are primarily meant to encourage the seller to reach out to you and ask about the buyer’s opportunity before you find another house. When writing, phrase your letter strongly to show the seller why you stand out from other buyers.
You should also customize the language and make it appropriate for your target audience. If you write several letters to different communities within the same period, consider fine-tuning the language to make each captivating but original.
A tip to make your letter more compelling and convincing is to mention the high demand in the market. Tell the seller how few homes there are in the market and mention high demand, explaining that now is the perfect time to sell their house.
Sellers don’t love having their houses on the market for too long, and they are likely to sell if you tell them you already have a buyer because they don’t want the market to shift.
Some of the things to include in this letter include:
- Homeowner’s details- These include name, address, city, or state. You can also detail the reason why they are moving to indicate urgency.
- Your details- Include your name and how long you have been looking for a house.
- Details of home the buyer wants- Explain the size, number of rooms, and features of the home your client wants, and explain that the seller’s house was the best option. If you are writing to a general community, write that you found that area to have the best homes similar to your client’s liking.
- Familial status- This explains the size of the buyer’s family, for example, the number of children and pets. You can also include the children’s ages and other people intended to live in the house.
- Time window- Write the timeline within which your client needs the house.
- Contact details- At the end of the letter, list how the seller can reach you, like a phone number or email.
Many sellers consider buyers depending on their ability to pay, and you can list your client’s income stability to demonstrate that.
You can also write that if your client does not end up buying the home, you have other clients interested in a similar home or a home in the same neighborhood. You can send this letter via email if you target a particular seller or as a Facebook post targeting several sellers in the same area.
Be Sure to Have a Buyer First
It is essential to have a pre-qualified buyer ready before writing and sending the ‘I Have a Buyer for Your Home’ letter. If a seller gets interested in your offer after reading the letter, they will want to discuss the details of the purchase almost immediately.
If you don’t have a buyer ready, this might work against you as the seller might leave a negative review under the post, discouraging other sellers from reaching out to you.
Figuring Out Which Area to Send the Letters
Marketing in real estate is the focal point of the success of any real estate agent. Therefore, you have to determine the best people to market to, often called farms. Real estate farming is a strong marketing strategy that will help you develop business in specific areas or demographics.
You can choose geographic or demographic farming. Geo farming is the most common, involving focusing your efforts on one area. Demographic farming includes targeting a specific group of people within a particular area.
The two groups of people to market to include our sphere/ warmer group and our farm, usually cold databases. Some of the factors you need to consider when choosing a real estate farm include:
Turnover rate
This is one of the main things to consider as it determines the rate of your success in selling houses. It refers to the rate at which the homes in a particular market sell. The best strategy is to look at a two-year period to get an accurate average, then divide by two for an annual approximate. You get that information from the local MLS, then download it.
The average turnover rate is usually 7%, so you should go for a farm with the same or a higher rate.
Competition
After getting your turnover, determine how many real estate agents are operating in the area. While a high turnover farm is good, you will likely face more competition there, reducing your chances of closing deals.
When looking at the real estate saturation rate in an area, consider having it as close to one as you can. A saturation rate of one means that for every 20 homes that were sold, there were 20 agents involved. However, you need to consider the turnover rate and house prices.
Average homeowner’s income
Knowing the average income of homeowners in that area gives you an idea of your perfect client base. You might have many clients, but if they don’t match the income level of most people in your target area, it’s hard to close deals.
Nearby amenities
Look for schools, parks, nightlife, restaurants, hospitals, and transport. If there are children and pet parks, that area is perfect for your clients with pets or children.
Popular home styles
Different home buyers want different house styles. Determine the house styles that sell more and choose a farm with similar houses. The best way to get an excellent real estate farm is to choose a farm close to your neighborhood.
This gives you the upper hand because you know the market and the people living there. You will also know immediately if someone is selling, and since you already have connections with the neighborhood, they might approach you directly once they want to sell.
Conclusion
After determining your farm, ensure you choose how you send your letters and how often you will send them.
