Posted by Ronald * Starr on May 17, 2001 at 14:04:11:
Chris---------
Congratulations! What a negotiator you are. Hope I don’t have to come up against you some time.
Good Investing********* Ron Starr************
seller talks himself out of thousands… - Posted by Anne-ND
Posted by Anne-ND on May 17, 2001 at 12:40:14:
I’ve been listening to Roger Dawson’s tapes for several weeks now, hoping to learn some persuasive techniques. This morning I had a chat with a seller, and with my new-found knowledge was very amused to listen to him talk himself down on the price without a word from me.
This seller called 2 months ago on a ‘for sale with seller financing’ ad we ran. After hearing our voice mail machine (‘we buy houses & mortgages’) he called back to say he had a house to sell to us. 6 Bed/1 Bath- large house.
Long story, short: I looked up his financials (he owns it outright). We finally connected on the phone this morning and he tells me “I won’t take less than $33K” (this is a good deal at this price, IF the house is in reasonable shape). It’s rented out at $600/mo to a tenant who’s been there for 4 years and wants to stay.
Then we chat for 15 minutes about the local RE market during which time he tells me his motivation (wants to 1031 into a 4-plex he’s buying). I ask him if he’ll seller finance it (we like to buy CfD)- absolutely not.
Then I just sit back and listen. He says, 'I don’t need to sell this house, it cash flows for me, so don’t make me an offer like $25K, because I won’t consider it".
Hmmmm… interesting.
Then he tells me that he wants to get at least $30K out of it (down from $33K a few minutes before).
By this time (30 minutes into the conversation) I’m trying to get off the phone, I told him we’d talk it over and send him an offer, and he says, as I’m about to hang up ‘I’d only be willing to sell on contract if I got a big down payment’.
Bingo!
I’m going to offer him $28K with 5K down, seller financing for the rest at 9%, interest only with 10 year balloon. I’d go up to full price ($33K) on this one if we could get some seller financing.
I like this power negotiating, but it sure is a lot of hard work!!
Anne
Comments appreciated!
Re: seller talks himself out of thousands… - Posted by Monique
Posted by Monique on May 17, 2001 at 14:25:22:
Hi Anne,
I love it!
BTW, is $5k the most you’re willing to pay as a downpayment to this guy. Maybe you can go in just a tad lower, to leave yourself room to be “negotiated up.” Maybe with a lead in with … “We have never paid more than 5% down on a seller-financed purchase. Our commitment to pay you $3K is a very strong offer.”
Heck, he just might talk himself out of needing a “big downpayment” too (smile).
Monique
Re: seller talks himself out of thousands… - Posted by Chicago Chris
Posted by Chicago Chris on May 17, 2001 at 13:52:42:
Hi Anne,
Had a similar thing happen to me about a month ago. Got a call from a seller that wanted to sell a townhouse. I asked how much he wanted and he said “between $15,000 and $18,000”.
What the HECK does that mean? Well to me it meant I should say:
“Wow…$15,000…I don’t know…if I could get you cash and you could be rid of this thing quickly how much would you accept?”
His answer: “$12,000.”
Total elapsed time: about 35 seconds. LOL!
Funny thing is, he had the house appraised and KNEW it was worth $37,000! AS-IS!
I am on my way to the closing right now!
Chris
Re: seller talks himself out of thousands… - Posted by Tom
Posted by Tom on May 17, 2001 at 12:47:01:
As Louis Brown says, your main job during the interview is to keep your mouth shut and say only, I see, okay, Uh huh, you don’t say, and similar phrases. Sounds like you’re learning well.