L/Oor wants referrence - Posted by Brad

Posted by Brad on February 08, 2001 at 12:16:00:

Merle, you are definately positive and helpful and I really do value what you have to say.

I definatly could have done things a little more different and I will next time.

As a matter of fact, if she asks me about referrences again, I am going to referrence some of the advise you gave in your posts.

Thanks for your help…keep you posted.

L/Oor wants referrence - Posted by Brad

Posted by Brad on February 07, 2001 at 20:22:34:

Just got off the phone with a motivated seller (6 months on market). Its a condo with FMV of 100K and she’s asking 94K and in “move-in” condition.

I offered to L/O her house and a can of worms I opened. 1,359 questions she asked. I answered most.

This would be my first L/O deal. I was very prepared in answering her questions, after months of digesting Mr. Bronchicks L/O course and Creonline, of course!

But I messed up, I think. She asked me for referrences and not thinking, I told her no problem, but I had to contact them before hand. Well, that’s the problem. I haven’t ever done a L/O deal.

She also questioned why I had to be added as additionally insured on her ins. policy. I could not answer that. She thought that I should be on my own landlord policy. I told her I would have a landlord policy, but she still needed to add me. What would be the best way to explain why?

Anyone ever had these questions asked? Answers appreciated!

Re: L/Oor wants referrence - Posted by Monique

Posted by Monique on February 08, 2001 at 08:32:11:


I agree with Merle. We’ve found that sellers that are truly motivated to sell ask questions around

  • Time (“How quickly can you make this pain go away?”)
  • Money Needed (“How much are your fees/commissions?”)
  • Money Gained (“How much can I walk away with?”)

If we have done a good job of presenting ourselves as people who can SOLVE THEIR PROBLEM, then they don’t ask tons of questions about the paperwork and the process. They’re focused on the result, not on the interim steps that we will take.

My $0.02


Re: L/Oor wants referrence - Posted by Merle

Posted by Merle on February 08, 2001 at 06:43:52:

Brad …

Your problem is a lack of confidence. YOU are the one with the answers to the problems in this scenario. In all cases, the seller has a problem … they want to sell. As a buyer, you are the one to solve their problem.

When one is sick and goes to the doctor, they do not ask questions directed to the doctor’s ability or integrity. They ask questions about their condition and what they can do to get well.

When we get a call from a seller, we ask the questions … description of house, address, price, is it listed, why they are selling, etc.

After listening to their “symptoms,” we tell them what we might be able to do to help them. We explain that we pay up to 85% of the market value (depends on soem of the answers to the questions we ask).

We ask questions to find out if they could sell to us … our price. We tell them what we might pay … even if that is not close to their asking price. Quite often sellers have unrealistic expectations. They are calling us because they need help. We try to point them in the right direction … even when we can’t or won’t buy the house.

We always drive by before setting an appointment to meet with them. No need to waste my time if I don’t like the looks of the house or the location.

Last word … remember your position in this conversation. They need you more than you need them. There are a lot of sellers out there … you are looking for the ones with whom you can do your business. Cadillac dealers don’t try to sell cars to people who always drive compact cars. We are not going to sell everyone … just the ones where we can help them and still make a profit.


Re: L/Oor wants referrence - Posted by RonVa

Posted by RonVa on February 07, 2001 at 21:46:13:


No offense but a truly motivated seller will not ask 1,359 questions. After people ask me a few questions and they keep asking them I change gears and take it away from them. I stop and say I am not sure your house would even qualify but if you are open to the possibility then I can come look at your place and meet you and discuss it further. By doing that if they are truly motivated they will quit the questions or they are not ready for you. Yet!

But if you feel a deal is really there then you can go meet them and not try to close a deal on the phone or before you have even checked the property to see if in fact it does fit what you are looking for.

Now to answer your questions:
-references: Give her your Attorney or banker or someone that will back you up as a good business man. Just because you havent done a L/O yet doesnt mean if she called a couple of your associates or friends they couldn’t say you are honest and a good business man

-insurance: You need to be added to the insurance because you are putting yourself and your time and money into the property and besides her insurance should stay the same price and if by chance it goes up slightly tell them you will pay the difference in the monthly payment.

I don’t want to try and talk you out of dealing with them but when you find the motivated seller they will not be hard to deal with at all as long as you come across as someone who is trying to help them at the same time you are trying to run your business.

Goodluck and let me know how it proceeds,

Re: L/Oor wants referrence - Posted by Brad

Posted by Brad on February 08, 2001 at 09:01:38:

I agree with Merle too. The seller wasn’t as motivated as I wanted her to be, just kinda slow.

You and Merle have experienced something I have never had the chance to experience…a motivated seller. I look forward to the day I meet one.


Re: L/Oor wants referrence - Posted by Brad

Posted by Brad on February 08, 2001 at 08:10:25:

Point well taken! And my confidenc is just fine. But I did not lose control of the situation by any means. I just answered her questions.

That was my first L/O seller. Her questions were aimed at the L/O, not about me being credible.

And as to your Dr. analogy, think about it Merle, if you went to a Proctologist for the first time and he told you to bend over and he had a big 4ft knife in one hand and a bucket in the other, you wouldn’t ask any questions? You would question the Dr.'s credibility? I know I would.

This lady is only familiar with selling her house with a realtor. L/O is rocket science to her. I had to educate her. I know I’m not telling you anything you haven’t heard before, but it is new to me.

Believe me, I hate it. I wish everyone would just say “show me where to sign”.

I really do appreciate your constructive thoughts. Thanks again.

Why do I need to be put on their insurance policy? - Posted by Jim C

Posted by Jim C on February 08, 2001 at 24:57:45:

What if the owner asks why I need to be put on their insurance policy? What should I tell them? Is it just in case the subtenant does something to the house? That way that will be covered as well?

Will they have a problem with this? And how do I make it sound like this is a benefit to them?

Thanks a lot!!!

Jim C

Re: L/Oor wants referrence - Posted by Monique

Posted by Monique on February 08, 2001 at 10:15:37:


If it’s any consolation, most of the people that respond to our marketing AREN’T motivated enough. They WANT to sell, but don’t yet NEED to sell. But when a seller calls who is very motivated, we run (not walk) to go solve their problem and get it under contract.

Keep on keepin’ on. With the Law of Large Numbers, you’ll start finding gold in them thar hills!


Re: L/Oor wants referrence - Posted by Merle

Posted by Merle on February 08, 2001 at 10:21:43:

Guess I misunderstood the situation. Your first statement was that you just got off the phone with a “motivated” seller. In my experience, most everyone who has a property listed for 6 months would be somewhat motivated.

I believe you did lose control. If she was asking questions for which you had no answer, she was in control of the conversation. And, I do believe your confidence was shaken when that happened. You said you “messed up.” That in itself almost always causes one’s confidence to falter.

My doctor example was probably a bit oversimplified. I can assure you that if I went to a doctor who might even think about doing what you propose, I would have done my homework ahead of time. I would know a lot about that doctor before I went in the office.

Rereading your post causes me to think you might be telling her too much at that point. I can’t imagine discussing the insurance issue on the first call … before you have seen the property or gotten close to making a deal.

I like to use a “piling on” on of information when selling. As a buyer, you are a seller. Tell them only what you need to say to progress to the next point. Insurance discussions would come much later.

Somehow, for some reasaon, this lady was asking you questions that should not have arisen at that stage of the conversation. She probably is a motivated seller … unless she simply listed the house “just to see what happens.” There are a few of those. After 6 months of dealing with a Realtor and no sale, she’s ready to listen to another way to sell … even though she may not realize one exists.

Hope all this comes across as I intend … positive and helpful … not critical or negative. Sometimes it’s a little difficult to type the words you think … that is, when you type as slow as I do.

Have a GREAT day!!