Posted by J. Clifton on June 29, 2001 at 20:50:29:
If the seller is throwing up a reg flag by asking for references, how do you quantify your “a pretty good chance” of closing the L/O? Did he actually accept the offer? Did any paperwork get signed? Hope for the best, but don’t be surprised if he bails. Tell the truth, that it’s your first deal, if he’s motivated enough it won’t matter. Or, if he’s stuck on the issue, come back with, “well, most other buyers out there are first-time homebuyers. I’m here right now, ready to close; would you rather wait 3 months for your next first-timer?” On your first deal, all you can do is give job and character references, plus a statement (if applicable) from your attorney affirming that HE has experience with L/O’s.
I have a deal that has a pretty good chance of getting done here on a L/O. I was talking to the seller today and he asked if I had any references of people whom had entered into this agreement with me before. Now I am trying to close my first deal so I don’t really have any. Any suggestions besides just saying hey, this is my first one and you are my test?
Actually, in spite of what Kevin wrote, some motivated sellers will want to see references. They may just be a little nervous about the deal or aren’t quite sure how it will work and want to talk to someone you’ve done a deal with. Now of course, if you’ve never done a deal before, you aren’t going to have those references.
Tell the sellers that you are often dealing with people who are going through bankruptcy, foreclosure, or some other financial difficulty. As part of your standard business practice, you keep all sellers? information confidential. Then ask the seller this question. ?If you were going through a bankruptcy and couldn?t make your house payment and we signed a deal on your house, would you want me to share that information with everyone I met? Would you be comfortable getting a call from a complete stranger who says, ?So I hear you?re going through a bankruptcy. By the way, how did the deal with the house turn out???
I will usually offer professional references such as my attorney or banker to vouch for me. This makes me appear more professional any way. This can also answer the sellers? concern about me being legitimate.
One final note. Remember to be honest. You do not want to lie and say, “Well, I did 42 deals last year, but I can’t really give you the names of the people.” Just be honest if you are asked directly how many deals you have done.
Re: L/O-Seller wants references - Posted by Kevin Subbert
Posted by Kevin Subbert on June 29, 2001 at 23:14:27:
Tell this guy to pack sand. He isnt motivated. Since you are new you probably havent dealt with any motivated sellers, but once you do you will know it. A motivated seller doesnt ask for references. Whats this guys situation? Is he facing foreclosure? Ill bet he’s just testing the waters. Chances are that even if you gave this guy references, he would still balk. Is it really that good of a deal?