Joe Homs, a broker with 40+ years in real estate, walks through how to approach homeowners facing foreclosure. Start with empathy and research their situation, bring a contractor to estimate repair costs, then use those numbers to negotiate the price. Stay transparent about what they owe and what it will cost to fix.
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You're standing face to face with a homeowner in distress on the brink of losing their cherished property. The stakes are high, emotions are running wild, and your ability to navigate this delicate conversation will determine the outcome. Welcome to the world of talking to foreclosure sellers, where empathy, strategy, and communication can change lives and unlock incredible opportunity. In this video, I'm going to unveil the secrets of connecting with these homeowners and give I'm going to give you the roadmap, a guide through these challenging conversations. If you need more help after this video, please feel free to reach out. My info is down below. Hi, I'm Joe Homs, and I have over 40 years of experience as a broker, mentor, and investor, and I want you to subscribe so that you never miss a video. The first thing you need to do is be empathetic, and that looks like building rapport with somebody, finding out How they got into the situation that they're in, and hopefully having some sort of resolution that not only works for them but also works for you. Number 2, research and prepare. Make sure you know everything about this property that you're going to go look at. Find out if it was ever listed by a real estate agent. Find out if it's currently listed by a real estate agent. Find out why they've decided to reach out to you, the wholesaler who's willing to give them a cash offer. Is that the reason? Because they want to do something quickly? So find out, do your research, do your homework to know what the answers are going to be before you even get there. Are you following along? Make sure that you hit that like button and help me get in front of new investors. Always present solutions, and there are solutions for everything. They may not be what the seller wants. I can tell you that every seller I speak with wants to stay in the property, wants to save this transaction any way they can. That is not always possible. In fact, most of the time, if If it's a pre-foreclosure and they're behind months and months, it's very difficult to make up that arrears and payments. And by that time, attorney fees and everything else that the bank adds on there, so it makes it that much more difficult, especially if they don't have a job. But you know, figure out what exactly is going on and be honest with them. Negotiate, negotiate, negotiate, and close the deal. Negotiation. Never stops. I talk to somebody, I get a price, I put it under contract. My contract, and in my contract I have contingencies. One of them is actually going over to see the property. When I go over to see the property, I take my contractor with me. My contractor is looking around basically saying, Joe, it's going to cost you another $5,000 to address this issue over here. Another $10,000 to this issue. The roof is not in great condition, that's another $20,000. We have to do some more electrical, that's another $20,000. $15,000, the pool's not in good shape, whatever. I'm negotiating at this point in time. I have a contract, I have a set price that we've agreed upon, but that doesn't mean that negotiation is over. If the price is too much, the rehab is going to be too much, I didn't include that in my numbers. I am renegotiating with this seller and I'm telling them, you know, everything you just heard— I have my contractor here and I'm sure you probably knew about it anyways— everything that you just heard is going to cost me more money. And, you know, I've been honest and upfront with you. That's what I do for a living. That's how I make my money. So I need to renegotiate this price. Are you okay with dropping this price $50,000. Okay, always ask for more than you think you're going to get. Oh no, Joe, I can't do that. I'll drop it $10,000. How about $40,000? Oh Joe, how about $20,000? Okay, let's meet in the middle. How about $30,000? Which is what you wanted anyways. Okay, we have a deal. We'll drop it by $30,000. I'll get this closed in a few days for you. Okay, shake my hand. The opportunities that await are vast, and if you work on these newfound skills, You have the power to create meaningful impact. Now I want to hear from you. How do you plan on applying these strategies when talking to foreclosure sellers? Share your thoughts down below. Make sure that you subscribe and you like this video. And if you want more information on how to talk to sellers, click on this video right here. Feel free to reach out anytime. I'm always here to help.
