Can I get your opinion (quick question)? - Posted by Stacy (AZ)

Real Estate Investing
1

Posted by Stacy (AZ) on July 16, 2001 at 17:34:49:

Hi Alex. Thanks for the idea, my friend. I saw your post this morning, and changed my form to ask your question, pretty much verbatim. Just in time. I received a completed form this morning from a very motivated seller (pre-foreclosure, two weeks left) who entered an amount for this question ($6000). I’ve already spoken to him, and will offer less than this when I meet with him, but it helped me to establish his expectations right up front.

I like it so far!

Stacy

2

Can I get your opinion (quick question)? - Posted by Stacy (AZ)

Posted by Stacy (AZ) on July 15, 2001 at 17:06:15:

On my website I’ve got a form for sellers to fill-out. I’ve been relatively happy with the information I receive from sellers when they submit the form. It allows me to get a head start, and also to weed-out some of the non-deals.

I decided to add the following question to the form, but I’m not so sure it’s a good idea.

“What is your absolute, rock-bottom price?”

It may be too much to expect them to answer this question without speaking to them first. But, then again, I’m usually surprised at the personal information I get on this form, and they can always leave it blank. What’s your opinion?

Thanks-

Stacy

3

Re: Can I get your opinion (quick question)? - Posted by WilliamGA

Posted by WilliamGA on July 15, 2001 at 19:10:12:

Stacy,

I know what some of the GURUs say about asking that question or some form of it but here is what I have picked up on.

You get the best deals and the best terms when you spend a few minutes actually talking with these folks to find out WHY they need to sell. I agree that a site with a form is a great way to “weed out” the “non-deals”, I use it myself, but I can usually get enough info from the form to determine if there is a deal or not without those type questions.

Case in point, a house listed in the MLS for the past couple of months at 109k which just happens to be about FMV for this house. It is in great condition, new paint, carpet, vinyl. Owners have moved out of state. I mail out to all listings that are over 60 days that are vacant. I get a call from the seller about my card. Through discussion with him, I find out that he had the house on a 15 yr note at 7% interest and is 8 yrs into it. Only owes 50k. He is 3 months in arrears at 850 per month (550 per month to the principal!) and foreclosure is only a few weeks away.

After finding out his situation and spending a little time on the phone with him, I discovered his main concern at this point was saving his credit and just walking away with SOMETHING. He agreed to take 3500 for his equity if I would make up the 2500 in arrears and actually thanked me for letting him be able to sleep that night. We faxed contracts and such back and forth and I just got the deed back in the mail. His check goes out tomorrow.

I just have a feeling if I had said “what will you take” I would have heard a higher number. After all, he thought he “would take” 109k for the past 2 months.

Just me take on the question. I am sure others will differ.

4

Re: Can I get your opinion (quick question)? - Posted by DavidV

Posted by DavidV on July 15, 2001 at 18:47:01:

I know you are a silver tongued devil, but i kinda like the way Terry worded it. I never thought of using that on a site, i might try it.

5

Re: Can I get your opinion ( - Posted by Terry (Houston)

Posted by Terry (Houston) on July 15, 2001 at 18:39:23:

IF you are thinking about adding this, why not ask:
“If I can pay all cash and close quickly, what is the least amount you would take?”

Just a thought.

Terry

6

Re: Can I get your opinion (quick question)? - Posted by SandyFL

Posted by SandyFL on July 16, 2001 at 12:20:40:

The real question is - then - to Stacy, if had you seen the man list “109k” as an answer to that question, would you have “weeded him out”?

Just a thought

SandyFL

7

Re: My Expectation - Posted by Stacy(AZ)

Posted by Stacy(AZ) on July 15, 2001 at 20:27:50:

I hear your overall concern in regard to actually having a conversation with the seller. I guess I should have been more clear on what I expect to get from this question on the form.

Some background: I’ve got four ways for sellers to contact me; 1) my business phone (800 number), 2) my “Hotline” (cell phone), 3) The form on my webpage, 4) email from my web page.

I receive about 30% to 50% of my initial inquiries from my site. But, to be clear, all of these methods will require a call back, except when the house obviously doesn’t meet my criteria. Examples: a Mobile Home, a house in a gang area, a house outside my county (or in another state), a seller that expresses a requirement for full retail cash, or a seller in foreclosure who owes about what the property is worth. Other than the obvious “no deals”, I call and do the typical investor chit-chat we’re all so familiar with.

My expectations for adding this question to the form are to 1) try to get sellers to name a price first, 2) get them to start thinking about accepting less for their property than they had in mind, 3) give me an idea of who’s expecting too much for their property (FMV, for example), 4) give me a good idea, quickly, if someone’s wanting to give away their property.

As a side note, if the seller in your example had sent me a form with my questions answered, I would have definitely called him back when I saw the foreclosure/arrearage info.

But, the main reason I’m asking everyone’s opinion, is because of the reasons you stated. Can I really expect to get anything useful out of this question? I’m continually surprised at how inept some people are with negotiating. Not that I’m a perfect negotiator, but some of these people, especially when desperate, will just lay it all right at my feet. Those are the ones I hope would answer this question.

You’ve definately amplified the negative side of my own thinking on this silly question. I’ll wait for more input, but may just take it off the form.

Thanks for your help yet again, William.

Stacy

8

Re: Can I get your opinion (quick question)? - Posted by Stacy (AZ)

Posted by Stacy (AZ) on July 15, 2001 at 22:00:12:

Silver tongued? Me? How could you tell after so much imbibing at the convention bar? LOL!

Hope all is well, David. Keep that air-traffic in line!

Stacy

9

Re: Can I get your opinion ( - Posted by Stacy (AZ)

Posted by Stacy (AZ) on July 15, 2001 at 21:54:06:

Yeah, maybe I could change it. Then again, maybe this is a question I should ask in person (see William’s reply). Thanks for your input, Terry. Hope all is going well with you.

Stacy

10

Re: Nope, see below… - Posted by Stacy (AZ)

Posted by Stacy (AZ) on July 16, 2001 at 12:39:54:

I definately would have called him, since the mortgage arrearage and loan balance info would have caught my eye. But your point (and William’s) can be made for anyone who entered near FMV, but who would really accept much less. It’s a problem with the question, for sure!

Stacy

11

Re: My Expectation - Posted by Alex Gurevich, TX

Posted by Alex Gurevich, TX on July 16, 2001 at 10:24:29:

Hi Stacy,

Glad to see you are in high gear.

This is what I use on my form and it doesn’t give me any trouble:

If we closed quickly, and assuming that you pay no
commission and no closing costs, what is the least
amount of NET cash in hand above your mortgage
balance you would accept ? $____________

Please note, I am not asking them what price they want, but rater what they want for their equity.

I have a pretty long and detailed form, but that’s the last question at the very end of it.

Happy hunting.

12

Re: Can I get your opinion ( - Posted by Terry (Houston)

Posted by Terry (Houston) on July 15, 2001 at 23:00:37:

I would agree with William,

That is why I said IF. Just my thoughts.

All is well and How are things there?

I hope business is great for you.