How to deal with homeowners that like to fish for best offer

General Real Estate Investing
1

I’ve been noticing alot of homeowners trying to sell their house whether they are in default or calling on newspaper ads. I’ve gotten many calls where the homeowner would ask, how much would you offer on my house. I usually don’t give him an answer. I get his info and do a quick due dilligence to see the information on his house then call them back within the hour. I know that alot of homeowners like to set up appts to have me see the house, then when I make an offer, they like to get back to me and see what other investors offer them.

What is the best way to persuade them or to get them to sell you their house? Is there a better approach to something like this if the deal sounds pretty good?

2

baldydude,

You bite the hardest. What makes your offer better than the next? It’s like attracting a woman. You have to make the seller want YOUR offer… and the name of the game is $$$ - “Dinero” in the U.S.

Da Wiz

3

I always ask them," on a scale from 1 to 10 with 10 being a definitely motivated, are you ready to sign a contract tonight?"

if they say anything less than a 10…I tell them that I only work with 10’s and to call me when they want to be relieved from their Problem. They are in the hotseat, not you. they are at risk of something, not you. your biggest weapon is that you can always walk away and you will still not have a problem, they will.

be courteous, and sincere. be there to help them. serve their interests first, and you will be rewarded.

otherwise walk out the door and let them “fish” you have nothing to lose, but they sure do.

just kindly thank them for their time and tell them what a wonderful house they have and let them know that it was a pleasure to meet them and that they should have no problem finding a buyer when THEY are READY to sell. and leave them a business card with your number on it.

if you are sincere and show them thaty you are interested in their well being … they will call you back.

4

There are always things that can be done differently, or better, that will change the outcome of a particular type of situation.

For instance, first, you need to change your way of thinking. Is not, how can you persuade them to sell their house to you, it should be, they have to convince me to buy their house from them.

The principle is still the same, but do you see the fundamental differences in those statements? In the former, you are the one motivated. You’re trying to buy their house. In the latter, they have to “persuade” you, or to convince you, that their house is the property that you should buy.

Also, if you’re getting enough information on your call to actually make an offer (subject to inspection, of course), then make one. All you really need to know is the location, # of beds, baths, heated sq ft, estimated repair costs, and estimated value (all from seller). Depending on your particular investing style, you may need more, or different info, but a cash buyer only needs those.

With that info, you can say, “well, based off your numbers, I could offer you X amount cash, and we can close in as little as X days. Would you like to have this sold by then?”

That may or may not get you a deal, but it will determine fast their motivation level and if you really do need to setup an appointment to discuss further options.

And Doc is right on the money. You have to make you offer better than the others, though it isn’t always about the money. At least, not the more, the better. Sometimes, a fast closing is more important than more money later. Sometimes, a higher price is more important even if they have to wait for years to get it. Every seller’s motivation is different. It’s up to you to determine that motivation and decide which you want to work.

Raj

5

The best way is to set a deadline, bar none. If you don’t set a deadline they are going to shop your offer to others, and eventually they’ll find someone to outbid you.

Say their property is worth $100,000 and needs no repairs. Offer them $85,000 on a “take it or leave it” basis, giving them a deadline of, say, 7 o’clock that same day. In a seller’s market you won’t have much leverage at all, but in a buyer’s market you’ll be blown away by just how many people will be calling you at 6:58 that night.

The deadline is the key, as it works to your benefit. If they take the offer, you’ve made some cash. If they don’t, then you didnt waste your time haggling back and forth for a week, likely not getting the house anyhow.