I didn’t know where to put this so I figured I’d throw it in here.
This is what I’m referring to…
You go out to look at a property that YOU generated a lead on…NOT an MLS property, but something ONLY YOU know is for sale.
You look at the property, feel out the owner on their asking price (NEVER offer first) And then you sit down at their kitchen table to hammer out a price that gets them to sign…
I know when I do this, I like to ask a lot of seemingly random questions that don’t really seem to have anything to do with the home…
Do you have kids???
Are you planning on moving out of state if the home sells??
I always keep an eye out for clues about the property owners interests. Like pictures of fishing trips, classic cars, ANYTHING that I can use.
What do you do for a living???
The point of this is to number 1 make the seller comfortable with you. As I ask these questions I always make small talk regarding their answers…Like…Oh, I had an old Triumph TR-6 too…Great cars…Still wish I never sold it.
When the SIT DOWN comes I hopefully have some AMMO to use. I stress that my offer is ALL CASH…They can have their money in 3 to 5 days MAX…NO BANKS, NO REALTORS, NO INSPECTIONS…Then I mention how that money could buy them a perfect TR-6 and do a lot for those grand kids…Or something like that…
I also do a LOT of listening…I love hearing…“Well I realy donlt know how long it’ll take me to clear out all this junk??” I say…“You don’t have to CLEAR OUT ANYTHING…Take the things you want and just LEAVE the rest…Why should YOU pay for dumpsters??? This is the advantage of dealing with ME…I’ll make this EASY for you…All you need to do is pick up you money, not pick up JUNK!”
This is how I do it…What I want to know is how YOU GUYS do it!!!
I don’t usually do a sit down. I only buy from DESPERATE sellers and I normally just tell them my price. I normally don’t do any negotiating - it’s my price or I’m moving on.
All my HOME RUNS came from people who UNDER VALUED their homes.
THEY set the price NOT me…I’ve gone into look at homes that I thought would be absolute STEALS at $75K only to have the owner tell me they want $50K. My goal in these situations is to get them SIGNED without seeming pushy.
The small talk creates a comfort level and they DO sign!!!
Some people hate and fear Realtors for some reason. So if you say, “If I buy it we can just leave the Realtors out of this!” This really makes the seller happy.
Maybe the sellers just don’t want nosy, critical strangers (neighbors) walking through their house. They don’t want the neighbors looking at their junk.
Another tip…NEVER NEGOTIATE STANDING UP. Sit down. Squat on your heels. Drop onto the porch steps. Just get BELOW the eye level of the seller. This automatically makes you less of a threat. This is an an old medical trick from the psych book on “How to defuse a hostile patient”. This makes the seller superior to you. Poor 'lil you.
Great thread, FDJake.
Remember to ask, “What do YOU think?” Then shut up. And shut up. And shut up. The first person who speaks loses.
Awesome Post! This is one really worth reading for a beginner like me. Been watching alot of homes and trying to pay off bills at a faster pace to invest more. Kinda nice to get off the political subjects, (even though thats the first place I head to).
I love the idea of getting a bit LOWER than the seller. That may seem like a small detail…But we’re talking about getting a P&S signed here. That can be a BIG hurdle to get an owner to jump over. ANYTHING you can do to put them at ease, pushes the ball further into YOUR court.
I also ALWAYS ask if they have any PLANS after they sell the house. By doing this you can point out various advantages to selling to you NOW.
This is how I would word that…
You can be finished with this TODAY!! Leave anything you don’t want, I’ll take care of what’s left…You don;t have to repair ANYTHING. NO realtors will have people tramping through your home, no home inspectors pointing out every little flaw. I’ll have a $5000 deposit at my attorneys office in half an hour, he’ll call you to set the closing date and you’ll leave his office with full payment for your home.
“What I want you to remember is this…YOUR MONEY IS A PHONE CALL AWAY!!! You pick up that phone, call me, and you’ll have $120,000 in your hands within 3 days of that call.” I use this as my last statement to an undecided seller. (the walk away) Leaving them with that thought in their heads is PRICELESS…They know all the worry, BS, bills…ENDS with a single phone call.
Be carefull when pointing out things a home NEEDS to an owner.
I usually approach the subject this way…I say…“I really like your house, BUT…as you know, it does need a lot of work…You know better than I do what it needs so I won’t sit here and put you through a laundry list of every flaw in the house. My house has flaws too…Considering what this house needs in repairs…What will you take for it if you could get payment IN FULL in 3 days???”