Posted by Tommy on June 04, 2000 at 12:26:39:
I thought that the moronic reply was from you but I just saw it was from the idiot named Berg!
I’ m sorry,It wasn’t meant for you
Tommy
What if the Seller says they don’t what their price is?? - Posted by Monique
Posted by Monique on June 04, 2000 at 11:46:03:
I’ve run across a few sellers who now own their houses free and clear, but say they don’t know what the current market comparables are. They say they can’t give me an asking price, but want me to make them offer.
Since she (or he) who mentions price first loses, how do you approach this? What do you say?
What I’ve tried is something like … “We try our best to meet the needs of the seller, and come us close as we possibly can to your asking price. What is a price that you consider FAIR for your house?” The sellers have responded with something like “I don’t know what the price should be. I haven’t had an appraisal. Do you usually get an appraisal (or make me, the seller, get an appraisal) and then make me an offer from the appraised value?” I have then responded with “We don’t ask our sellers to incur the cost of an appraisal since they are not always required for closing. What price would you COMFORTABLE with getting paid for your house?” If they still say they don’t know, I’ll use a low ball figure. Once I even brought comps and pointed to one of the lower sales prices and used that number as an offer. Invariably, the seller says something like “Oh, that’s lower than what I had in mind!”
Doh! So of course they did have a price, and they just played "she who mentions price first … "
Monique
Re: What if the Seller says they don’t what their price is?? - Posted by Bud Branstetter
Posted by Bud Branstetter on June 05, 2000 at 14:11:08:
There is the age old question- well, what if you did know what it was worth what would you want.
You can ask about owner financing and say that you have a friend that would pay all cash at $x dollars to keep it from being personal.
I have also used the approach that I am buying it as rental property so that I can’t pay as much as someone that wants to live in it themselves.
Instead of a price start asking question to bring out their motivation level-why are you moving, how fast do you need to get this done.
collection of stuff… - Posted by David Alexander
Posted by David Alexander on June 04, 2000 at 12:26:13:
to say.
Yep, it’s the game. One you have to learn to play. Dont get an appraisal (that’a after you buy). You should have an idea of what the property is worth before you get there and also should be able to adjust that based on any work needed.
I do violate the mention a number thing on occasion, but it’s usually something to the effect of well I’d like to give you ten dollars, or how about 5 dollars a month for the next 3 generations. I say this stuff with a huge smile to get the ball rolling.
And then I say something like are you wanting all your cash now? Would you consider some now and some later, if we can work the numbers out.
I try to start leading them in the direction I want them to go without mentioning a number, I always have an exit strategy two or three in mind for the property.
Then you might say something like (Ron Legrand) Well if I could get all cash and close very quickly what would be your best price? Got to get them really serious, mentioning all cash usually does.
That usually shakes the tree. If not, Well I can’t buy your house if I dont know what you want for it.
Sometimes they respond as much as I can get.
Well the truth is I’m Looking at several properties to buy right now and I’m really interested in yours and if your not sure what you want that makes rather hard to buy.
What is most important to you, The price you get for your home or having some cash now.
If I could make you a loan against the property how much would you need? If they answer somehting like 10k, then you answer so if I could get you 10k and we could work the rest out we could put a deal together?
** Also Remember to always have all selling parties their.
And then just have fun, at first you may have to be working on 10 deals at a time and close one or two, then as you get better at negotiating you’ll close more, and no more of which deals you can close without wating your time.
Dont be a wanter, this stuff is just your product, if you become a wanter becasue of the wonderful kitchen, or aple trees in the backyard it will be trouble. If you get this deal great if not,… NEXT.
David Alexander
Re: What if the Seller says they don’t what their price is?? - Posted by Berg
Posted by Berg on June 04, 2000 at 12:09:06:
From your comments I presume you’re an Estate Agent.
As such, the seller and you are in the same boat. The more the house goes for, the more commission you get.
Once pointed out, most sellers will treat you in confidence. You’re both pulling the same rope. Both of you want to cash in well, without overturning the boat and losing a potential buyer.
They are not motivated - Posted by Tommy
Posted by Tommy on June 04, 2000 at 12:08:28:
This seller is not very motivated period! It sounds to me like they have no clue as to how they can figure out what their house is worth and are relying on offers to see what you’ll say its worth. If they were motivated enough, they would know what their needs are and would surely have a set price. Monique, quit wasting time with these particular (wanna be) sellers. Leave your card and tell them to call when they have an asking price determined. If they really need to sell they’ll call you back, and if not then they’ll keep pestering other people.
Tommy
Re: collection of stuff… - Posted by Monique
Posted by Monique on June 04, 2000 at 13:23:57:
David,
Great ideas, all of them!
I’m meeting with a seller today who did not know the value of the house, but otherwise appeared to be motivated on the phone. I’ll be using some of the words you suggested.
I’m working on 8 or 9 deals at the moment. And you’re right, only one may pop. Just seeing my progress has made it fun.
Thanks again!
Monique
Not an Agent - Posted by Monique
Posted by Monique on June 04, 2000 at 13:12:08:
Nope, I’m not an agent. I’m out there looking to buy, so I want the LOWEST price possible.
Monique
Re: They are not motivated - Posted by David Alexander
Posted by David Alexander on June 04, 2000 at 12:35:02:
How do you know they arent motivated, she hasnt given enough information. They could be just good negotiators.
I have bought houses from people that I never knew there motivation, but I know they were because I took over there payments, equity, and problem, and usually for No money out of my pocket. I just took the time to listen and find out their needs even though they wouldnt reveal their motivation.
Not all motivated sellers Say BUY MY HOUSE NOW, and tell you how, some you actually have to talk to.
David Alexander
Re: They are not motivated - Posted by Berg
Posted by Berg on June 04, 2000 at 12:16:43:
Great, and lose a chance at getting a property at a good marketable price.
Some sellers just need someone to take things in hand for them. That is it might be a genuine case of not knowing the price.
If the frequency of this happening is as small as 1/20 it would still be worth the while taking time to find out.
After all that’s the pleasure in finding an uncut diamond.
You are interpreting my post wrong David! - Posted by Tommy
Posted by Tommy on June 04, 2000 at 12:53:02:
They are game players David [open your eyes!] They are playing to much for me to get involved with. I go where the sellers want to sign the deal today! There are plenty out there. I didn’t say forget about this deal I simply said to tell them to call back when they get an asking price in mind. If they are like you said good negotiators, they will surely call you back when they are ready.
Tommy
Well go ahead and let us know how you do. - Posted by Tommy
Posted by Tommy on June 04, 2000 at 12:22:40:
You have my blessings Berg, let us know how you do here. I will be out talking to three “Motivated Sellers” today and I plan on doing at least two of these deals, while you are playing games with these “Wanna be” sellers. Best of luck to you.
Tommy
Re: Well go ahead and let us know how you do. - Posted by Berg
Posted by Berg on June 04, 2000 at 14:02:49:
Well David Alexander’s “Collection of Stuff” posting seems to be a tailor-made answer on my behalf to your game theory observations of me.
Need I say more.