Posted on: June 15, 2020
WI 449 | Seller Ghosting

 

If you’re new to virtual investing (or wholesaling in general), then you probably have not experienced seller ghosting yet. However, it is crucial that you are aware that ghosting does not only happen when you’re dating someone. It can also occur in the wholesaling and virtual investing world as well!

While it is reassuring to know that seller ghosting is a rare occurrence, it does happen from time to time. In fact, it would be safe to assume it’s something you’ll most likely experience at one point in your business or another.

Fortunately, in this episode, our resident virtual investing mastery coach, Lauren Hardy, shared a few simple tips on what you can do when a seller ghosts you. So, if you want to equip yourself with the right knowledge to deal with seller ghosting effectively, don’t forget to tune in!

What To Do When Your Seller Goes Dark

Episode Transcription

In this episode, we are going to talk more about some fears and limiting beliefs, things, and real-life situations that come up in virtual investing. I wanted to talk about what you do when a seller ghosts you. What does it even mean to be ghosted? In the dating world and the Urban Dictionary, ghosting means when somebody you are talking to basically turns into a ghost, disappears, and never talks to you again. They don’t answer your calls, text messages, and your emails.

I like to call it seller ghosting because it does happen. What do you do when you are talking to a seller lead, and you get a contract signed by them, and you are going to do inspections? You are somewhere in the escrow process, and the seller goes dark, completely ghosts you. This happens quite a bit. I know a lot of people that this has happened to.

If you are doing enough deals and getting enough contracts, this is probably going to happen to you at one point or another. I wanted to share with you what I do. First things first, the benefit of the doubt. You don’t want to go all crazy and assume that you are being ghosted when maybe the seller was in the hospital or a family emergency came up. The first week, I would send text messages and emails saying, “I want to make sure you are okay. This is weird. I haven’t heard from you. We are trying to get these documents signed or escrows trying to get ahold of you,” or whatever.

Seller ghosting does actually happen.

You want to explain why you are reaching out to them and that you are concerned because you haven’t heard back. After week one, the next thing I would do, and this is what I would do if I had a contract with the seller and this is a property I want. I wouldn’t do this if it were something that wasn’t that important to me.

If it’s a property, a good deal, and something that’s important to you, in my state, it is my right to file a memorandum showing I have equitable interest in the property. What I would do is file a memorandum document with the county showing that I do have a contract to purchase this property. What that does is it stays on the title.

If that seller was trying to sell at a later date, maybe to another investor or they’ve got a better offer and now they are talking to that other investor instead of you or what have you, when they pull the title, they are going to show that there is not a clear title on the property and the title insurance company will not give that next buyer title insurance because of that memorandum.

What happens is they then give me a call because the memorandum has my number. It has my name and a copy of the contract. They will call me and say, “We see this on the title. Can you get it off the title?” I would go to the next steps. Depending on how important the deal is to me, I would either demand that the seller not continue with our deal. I might even hire an attorney to write an email to that seller saying, “This is a valid contract, and you are breaching it.” That’s about what I would do.

WI 449 | Seller Ghosting

Seller Ghosting: When you are talking to a seller lead and you get a contract signed by them and you are ready, you’re going to do inspections and you’re somewhere in the escrow process and the seller just goes dark. This actually happens quite a bit.

 

Often in this situation, I had it happen a couple of times in my career. It’s not very often that this happens. Usually, what will happen is I will tell the seller, “I’m filing a memorandum,” and then they start texting me back. If they really go dark and still don’t text, I will file the memorandum. I will ask the seller, “Let’s keep going with our deal because that’s fair.”

At this point, I probably had spent some money on it already. I had probably paid for somebody to go out and inspect. Let’s be honest and do the deal. You can take it from that point on. I am not an attorney, and I’m not here giving you guys legal advice. I want to be very clear about that. I am only sharing what I do in the situation of seller ghosting.

These are fears and limiting beliefs here. These are things that you might be afraid of. “What if this happens,” and I’m here to tell you it doesn’t happen very often. Once a year, this happens, and we are doing heavy volume. It’s not all the time but it does happen from time to time. That’s how I handle it. I do put my foot down. I do get a little firm and try to secure my deal. I secure my interest in the property but as far as, “Do I take it to sue a seller?” That’s up to you if you want to do that. That’s up to you and what your attorney thinks you should do. I’m not here to give you legal advice but that is just something to do.

This is something that happens, so I thought, “It’s a fun topic to talk about, seller ghosting.” I hope you liked this episode’s quick tip. If you like what you read and want to learn more about virtual real estate investing, investing in real estate out of your home territory, negotiating deals over the phone, and my awesome one-on-one coaching program, please visit www.WholesalingInc.com/virtual. I hope you guys have a great day, and thanks for reading.

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About Lauren Hardy

Lauren Hardy is a Virtual Investing expert and Real Estate influencer who owns multiple companies in the real estate industry including real estate investment, coaching, and software companies. She is also a Wholesaling Inc coach and co-host of the Wholesaling Inc Podcast.

Her experience in the last decade has been focused on real estate investing and creating products and services to serve the real estate investing community. If you are interested in investing in real estate virtually, house flipping, or virtual landlording, Lauren’s your girl.

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