Finding excellent investments opportunities in real estate can be a challenging task. For starters, prime distressed properties are often set aside or abandoned by their owners. Real estate agents have to figure out an effective way of getting themselves in front of motivated home sellers, thus guaranteeing more business. Skip tracing ensures real estate agents can locate potential highly motivated sellers by leveraging data.
With skip tracing, you get a much higher return on investment compared to direct mail, mass market, email marketing, and cold calling. Here is a comprehensive look at skip tracing in the real estate industry.
What is Skip Tracing?
Finding homeowners with properties not listed on the market is achieved through skip tracing. It is a proactive step that ensures real estate agents can easily access motivated home sellers. The term is commonly used by real estate investors who want additional contact information from property owners. You get to learn the exact whereabouts of potential sellers.
How to Apply Skip Tracing?
Using skip tracing software for lead generation requires a clear understanding of seller profiles. Knowing what kind of property owners are willing to sell their homes within the next year becomes paramount. Below are some key reasons why a typical seller might consider putting their home on the market.
New Divorcees
A newly divorced couple will likely seek to sell their property and split the pay. In most instances, one of the two is looking to find a new home to start over. This also presents a unique opportunity to assist them in buying a home too.
Seniors
It is normal for seniors to transition to assisted living facilities after a certain period. This new stage of life leaves them no option but to sell their current property.
Growing Family
A couple with a newborn baby is likely looking for a new home with a large yard. They need more space and a better school district, which acts as an incentive to sell. You get the opportunity to list an apartment, condo, or even an entire house.
Empty Nesters
Couples need smaller homes once their children move out to college. They start finding ways to cut down on costs and simplifying living.
High-Equity Property
When the owner has a 50% share of home equity on a piece of property, they might be tempted to reinvest elsewhere. Therefore, you get a top listing before it hits the real estate listing.
Deceased Owner
When a property owner dies, the estate or probate court may be looking to sell their property.
Is Skip Tracing legal?
Real estate skip tracing is legal provided you don’t use violent methods or illegal means to obtain individual details and information. There is nothing wrong with leveraging available tools and resources to discover where someone lives. However, skip tracers have to meet several legal requirements.
Interestingly, other states make it illegal to fake reasons why you are searching for an individual. Therefore, it is vital to truthfully state why you are seeking the whereabouts of a particular individual. Ensure you fully understand the rules and regulations of skip tracing in a particular state to avoid violating any laws.
What Next After Getting the Skip Tracing Info I Need?
What you do with the information you get from real estate skip tracing is up to you. Some real estate agents may decide to call the owners while others may run a direct mail campaign. However, only reach out to the property owner once you have all the necessary information at hand. Doing this ensures you have a pre-determined offer in mind.
We Are Here to Help
Skip tracing makes the difference between a successful real estate agent and one that takes whatever is on the table. At Enformion, we offer flexible solutions to help you achieve better outcomes in the real estate industry. Enformion’s skip tracing solutions entails data on more than 98% of adults in the US. Sign up for a free trial today to elevate your real estate career.
