Vilfredo Pareto came up with the 80-20 rule from the humble story of his pea pods in his garden, and Dr. Joseph Duran applied it to his study where he found out that 80% of the problem with products are caused by the 20% of production defects. Now, what does this has to do with real estate investment?
Connecting this study with the real estate industry, a real estate investor usually spends 80% of his time on acquisitions and 20% on dispositions. That means that more time is concentrated on buying properties and lesser time on selling the house.
Picture this: An overly enthusiastic real estate investor gets their hands on five lead lists, each containing 3000 leads. They eagerly hire a lead generation team to convert these leads into viable prospects, but after a lot of hard work, they only manage to get 100 of them to bite. Undeterred, the investor puts on their negotiation hat and manages to lock down ten properties.
But as it turns out, the investor forgot one crucial detail – they forgot to check if they had any interested buyers for these properties! Now they’re stuck with ten homes and no one to sell them to. Talk about putting the cart before the horse!
One of the most challenging, yet the most important part of real estate investing is finding a buyer for your properties. Whether you are a seasoned investor or a start-up real estate firm, the success of your investment ultimately depends on your ability to sell the property for a profitable price and within a reasonable timeframe.
Now let’s define disposition to help you understand how critical it is for your real estate business.
Disposition in the Real Estate Industry
In real estate, disposition refers to the process of selling or transferring ownership of a property. It can also refer to the attitude or mindset of a property owner or investor regarding the management and sale of their real estate assets.
The disposition of a property can be influenced by various factors, including market conditions, the owner’s financial goals and priorities, and the condition or location of the property itself. Successful disposition requires careful planning and preparation, including determining the appropriate sale price, marketing the property effectively, and managing the negotiations and closing process.
To navigate this process successfully and achieve the best possible outcome in terms of price, timing, and overall value, many investors turn to the expertise of a disposition specialist.
What is a Disposition Specialist?
A disposition specialist is a real estate professional who specializes in helping investors sell or transfer ownership of their real estate assets. They have a deep understanding of the market conditions and trends that affect real estate sales, as well as the strategies and approaches that are most effective in achieving a successful outcome.
By working with a disposition specialist, investors can benefit from their knowledge and expertise in areas such as property valuation, marketing, advertising, negotiation, and legal and financial requirements. With their guidance and support, property owners can navigate the complex process of real estate disposition with confidence, knowing that they are making informed decisions and maximizing the value of their assets.
What is the Role of a Disposition VA?
Hiring a disposition VA (Virtual Assistant) can offer several benefits to property owners and investors looking to sell or transfer ownership of their real estate assets. Here are some of the main things a disposition VA can do for you:
- Conduct Research on Buyers
Disposition VAs are well-trained in the art of selling. One of their primary tasks is to pull cash comps in the area, in order to determine what buyers are currently paying for properties.
Once they have this information, they use it to find and target every possible buyer for the property in question. This includes rebuilding or building the buyers list from scratch, and verifying that all interested buyers have real proof of funds.
To ensure that they are contacting the right buyers, a disposition VA also conducts skip tracing on the list of potential buyers. This involves using various tools and methods to locate and verify the contact information for each individual on the list. Once they have confirmed that the buyers are legitimate and have the financial means to purchase the property, they reach out to them directly in order to facilitate a sale.
- Process Paperwork and Negotiate with Buyers
When it comes to real estate transactions, there is often a lot of paperwork and coordination involved. This is where the transaction coordination service of a disposition VA can be incredibly helpful.
One of the key responsibilities of a disposition VA is to prepare the necessary contracts, such as the assignment contract or 2nd side purchase agreement. This involves carefully reviewing all of the terms and conditions of the sale, and making sure that everything is in order.
In addition to managing paperwork, a disposition VA is skilled at negotiating with buyers on the phone. They work tirelessly to get the best possible price for the property, and use their expertise and experience to navigate any potential obstacles that may arise during the negotiation process. Their goal is to ensure that you receive the absolute top price for your property, and that the transaction is completed as smoothly and efficiently as possible.
- Marketing for Buyers
Disposition VAs are committed to establishing and preserving connections with prospective customers. They accomplish this by periodically sending emails to every buyer on their list with helpful data and insights on the local real estate market.
They also speak with customers by phone and text in addition to email. As a result, they are better equipped to cater to the needs and preferences of each individual customer and to offer a tailored experience.
When it comes to specific properties, they are responsible for building the sales brochure and emailing it to the buyer list. This brochure includes all of the important details about the property, such as the number of bedrooms and bathrooms, the location, and any unique features or selling points.
Furthermore, they reach out to every buyer on the list via text message after they pull the list. This serves as a way to verify that each buyer is still interested in receiving information about potential deals. By taking these proactive steps and building strong relationships with buyers, a disposition VA helps you reach a wider audience and generate more interest in your properties.
By working with a skilled and experienced disposition VA, investors can focus on their core business activities while still achieving successful outcomes in real estate disposition.
The combination of research on buyers, transaction coordination, and marketing for buyers can help ensure a smooth and successful transaction, while ensuring that you get the best possible price for your property.
Don’t let the stress of selling your property hold you back. Take action now and hire a disposition VA to help you achieve your real estate goals. Schedule a free consultation with us so you can sell your property with ease and confidence, and move on to your next exciting venture.