Posted by J.Clifton on July 07, 2001 at 23:57:26:
nt
Motivated Sellers - Posted by Judy
Posted by Judy on July 07, 2001 at 15:48:27:
I find that sometimes when I am talking to a seller on the phone they give me an indication that they are motivated, but when I meet the sellers at their property, I learn that they are not really motivated and not ready to sell.
I basically let the seller do all the talking and I do ask a lot of questions, but on my last few meetings I have struck out on getting a deal signed.
Can anybody relate to that? I believe that developing negotiating skills comes from practice, but I’m willing to do whatever it takes to get better at this art of negotiating and screening out motivated sellers.
Thanks
Judy
Cool, Warm, Hot - Posted by J. Clifton
Posted by J. Clifton on July 07, 2001 at 18:47:56:
While there are endless degrees or types of motivated seller, there are only 3 basic categories of motivation (differently labelled depending on the investor or ‘guru’). This breakdown may help you save yourself time and frustration:
Level 1, or cool, is where objective circumstances exist that SHOULD be creating motivation, but the seller is only marginally motivated, or not at all. “Crunch time” may be months away, so they’re holding out for the normal full retail price/preapproved pigeon. This may be the type your running into. Antidote: ask them on the phone if they have a plan B, if their main plan fails. If they refuse to specify, or say aren’t even entertaining any investor offers as a back-up plan, next.
Level 2 or warm, is where the seller is motivated, but undecided about selling to you. Crunch time is near, but not quite here, and the seller still might also have an emotional need to save face with a ‘normal’ looking transaction. Antidote: Again by phone, ask, will they sign paperwork now? If not, don’t go, just send them an offer, follow-up later to see if/when they come around.
Level 3, or hot, hot to go, etc., is they’re hounding YOU to close TODAY, and are already heading out the door. Crunch time is NOW; their only concern is getting the cash they absolutely need, or getting some basic assurance that you are not a crook. RUN, don’t walk, to negotiate final details on the kitchen table.
Re: Motivated Sellers - Posted by Chip
Posted by Chip on July 07, 2001 at 17:10:34:
Judy, there are numerous factors which make a seller motivated. Basically they are: loss of job, foreclosure pending, illness, divorce. Or they inherited the property and are JUST ITCHING to get their greedy mitts on the cash!
“Relocating” MIGHT be a factor, but not in my experience, unless it is tied with another factor. “Wanting to buy another house” is DEFINETLY NOT a factor IMHO. They will wait it out.
If they don’t have AT LEAST ONE of the motivating factors, THEY CANNOT BE MOTIVATED! Think about it- why would someone walk away from thousands of dollars of equity. If they don’t reveal to you they have at least ONE of these (motivating) factors, you don’t have one one the line, no matter how much they talk the talk. Our questioning skills must be refined, and designed to get them to reveal their motivations if they have them.
BTW, if they have MORE THAN ONE factor, let your dinner get cold and go see them NOW!!
Does that concept work for you? - Posted by Judy
Posted by Judy on July 07, 2001 at 23:40:24:
Does that concept work? I mean asking them on the phone if they will sign the paperwork now? I know that there has been two or three times where I have traveled one hundred miles just to hear the sellers say, " No or I"ll think about it" What a waiste of time and gas.
I like the concept of just sending the seller an offer if they will not agree to sign paperwork.
Judy