Posted by Sarah on February 19, 2003 at 06:39:26:
Sage advice Phil and right on the money Lonnie style!
A GOOD WORD - Posted by Sarah
Posted by Sarah on February 18, 2003 at 05:50:31:
Success consists of a series of little daily victories. Dont count the things you do. Do the things which count. Do something positive with your business every single day no matter how small; even if its just reading a few posts. Invest in your knowledge. The cost of ignorance will always be higher. Thanks to all who tirelessly answer our questions. Your wisdom is invaluable.
Re: A GOOD WORD - Posted by Phil Pelletier
Posted by Phil Pelletier on February 19, 2003 at 03:39:51:
Advice for the novice and the pro alike:
“Honey, if you are not embarrassed to make the offer to buy the mobile home, you are offering WAY to much.”
Best advice you will ever get.
I never make an offer until I have told the seller, “Mrs. Seller, when you realize you don’t have an asset, but a liability, and you are willing to ACCEPT a fairmarket, wholesale offer for you place, you call me.” After that, you walk away and see them again another day. When they call you back, they are willing to discount the place usually about 50 to 75% of the original asking price. No, really, it works.
Somebody told me all this, and now I am telling you.
Phil Pelletier
Re: A GOOD WORD - Posted by Tony-VA
Posted by Tony-VA on February 19, 2003 at 10:29:41:
Phil,
I understand the “Walk Away technique” but I have to question the wording you use.
You wrote:
I never make an offer until I have told the seller, “Mrs. Seller, when you realize you don’t have an asset, but a liability, and you are willing to ACCEPT a fairmarket, wholesale offer for you place, you call me.”
I could spend a year trying to explain to my Seller’s the difference between Asset and Liablity, fairmarket vs retail etc.
Why make it sound as though this is some college level transaction being discussed before a chalk board?
Those words would make my seller’s eyes glaze over. When that happens I miss my mark. The intent of the walk away negotiating tactic is to draw out the seller’s level of motivation.
Why not keep it simple? Something like, “hmmmmm, that is still more than I can pay but here is my card. Give me a call if you decide that you can do better than that. I do pay cash but can’t pay that much.”
Hand them your card and walk away. A truly motivated seller usually stops you before or at your car. A shopper will shop around for awhile and then call you at the end of the month when the lot rent is due.
Either way, you are now negotiating from the position of strength.
And the whole time I never mentioned a price, never low balled them, never insulted them about the value of their Home, never had to prove the “if your not embarassed, your offer is too high” approach correct.
The low ball offer works well when you are dealing with companies selling repo homes, or you are dealing through a 3rd party who represents the seller.
This low ball technique is no secret. Bob Allen wrote about it years ago.
But when you are sitting in someone’s home and negotiating in a Win/Win fashion, I don’t agree that this is a time to insult the Seller, especially when we can get them to name the same number simply by employing negotiating skills. We solve their problem at a price that makes sense for them and no one is embarassed. We leave as the good guy and referrals follow.
Your approaches sound more like 3rd party approaches than face to face negotiations. Are you truly employing these techniques, in person with the sellers of mobile homes?
Tony