Another week has gone in a flash, but it’s been positive.
This week has all been about trying to build relationships with those three landowners who have responded to our letters, and for each site, we managed to get in two site visits.
But before we detail the progress of our sites, this week we will share details on how to conduct that first meeting with a landowner.
For those who have never done this before, meeting someone for the first time can be daunting. But, like all things, opportunities are on the other side of fear. What’s the worst that can happen? They are rude and tell you to do one!
Just to recap, the first meeting is just to build rapport,get to know each other and try to build a friendly working relationship.
In the first meeting, the key is, don’t talk figures; that’s a must. Some will just want to know what you value their land, although they do not intend to sell it.
Talking figures too early can ruin a deal. Before this, you need to assess the deal first and highlight the realities of property development to them. It’s not to pay a fortune for the land, build for nothing, and sell for a fortune, despite what many think.
At this first meeting, you also want to drop in that buying without planning isn’t feasible plus the land without planning isn’t valuable, so you would need to buy via an option, which will give you two years to get planning and then purchase at a pre-determined price.
But to do a deal, you need to be likeable and make them want to do a deal with you. If you fire 100’s questions at them and don’t come across as someone they want to work with, you won’t secure the deal.
Instead, you need to have a polite and friendly conversation whilst not being too direct. Gradually establish the answers to your questions by discussing things overall and reading between the lines of what is said.
Over a conversation, things will slip out as it progresses, so be sure to make a mental note. A throwaway comment about having family in Australia could be just the opening you need and shed light on the vendor’s motivations. They might need cash to fund expensive overseas trips to see family.
Once you leave the meeting, make notes detailing all that was discussed and any useful bits of information.
Building rapport this will determine if you can do a deal. Without rapport, you won’t make a deal.
As you build rapport with the vendor, you can gradually ask more and more probing questions. This is a skill, and like any skill will take time to hone and practice. However, through practice and a conscious effort to improve, you should feel more confident after every meeting.
Don’t lose the deal in the first meeting because the vendor sees you as the grand inquisitor and is only interested in one thing: money. If they don’t like the way you greet them, the way you shake their hand, the way you asked questions, then you will likely struggle to recover the deal.
The first meeting should mainly focus on meeting the vendor and taking the first baby steps towards building a mutually beneficial relationship. You can’t rush this stage; you can’t jump forward to have a great relationship on day one, but you will gradually build trust and rapport over several meetings.
On meeting them, be sure to give them a firm handshake (although don’t crush their hand), look to maintain eye contact, be as confident as possible in your pitch whilst being enthusiastic but not too keen. Don’t give the seller the impression you are desperate to do a deal.
Aim to ask open-ended questions rather than questions with a yes or no response.
When meeting them, introduce yourself, thank them for taking the time to meet you, and ask if you can take a look at the plot of land (if you are meeting them in the house adjoining the land).
On looking at the plot of land, try to take in as much as possible, take a look at any neighbouring properties, any windows overlooking the site, the access arrangement, possible overhead cables, any trees, and the likelihood of them having TPO’s.
Having viewed the site/plot of land ask if there is someplace you can discuss the site. Chances are they will invite you in to sit down at the kitchen table, when you’ll be able to chat things over.
Opening line: So, what is the situation with the land? You previously said on the phone that you had received letters from other developers but hadn’t responded; what made you respond to our letter?
The vendor might then share a reason for why they did respond, which could be a change in personnel circumstances, it might be due to their age and they need to get on with it if they are ever to do something with it, and so on. Look to get intelligence on the situation.
Although much of this might seem daunting, once you do it once or twice, you might grow to enjoy it. You’ll still get nervous, but that’s not a problem as it heightens your system and makes you more alert in the meeting. Look to weave in the questions with general small talk. If they talk of the family in Australia and you’ve been to Australia, ask them what area of Australia their family lives in and look to build a relationship on some mutual interests.
Try and establish:
- How could you help the vendor? What issues would selling the land solve them? Is the land too much for them, or do they want the money? The vendor might dread dealing with the headache of selling the land, and the thought of agents and solicitors might have made them stop selling it in the past. You can solve that problem; you can remove the stress from the sale, by bending over backwards to handle these issues.
- What’s important to them? Does the land have sentimental value? Do they need a developer to work with them due to some unique requirements, such as they wish to retain a right of way over the land, or they might want any new houses designed in such a way as to not overlook them?
- How do they see any deal working? Do they understand how land without planning has a greatly reduced value?
- What are their timescales? Do they have commitments they need to honour?
- What are the main drivers of the sale? Is it all about money? You don’t have to ask this directly, but if you can establish the main drivers, you will likely know why they are talking to you.
You don’t want to overstay your welcome, so you must read the situation. If the vendor is happy to chat, keep chatting; if they aren’t so chatty, then conclude the conversation and say you’ll be in touch shortly.
As already said, don’t be the one to discuss price at the first meetings; you need to get a feel for things, establish rapport, and ideally get them to bring up the question of price first and share what they feel the site is worth.
The first meeting could be 20 minutes or 1-2 hours. Take the lead from the vendor.
But our key take is that you won’t ever make a deal without rapport.
Next week, we’ll share how our rapport-building went.
If you missed last week’s newsletter, catch up on it by visiting LANDpreneur.co.uk.