Negotiating with Seller????? - Posted by Wade

Posted by Peter_MD on September 12, 2002 at 10:33:49:

Ed:

I always enjoy your postings and I think you gave a very important lesson to beginners in what you suggested.

In reading the post I kept saying to myself, where’s the motivation? It’s not there and nobody can made someone who isn’t motivated become motivated.

Reminds me of stealing a house a few years ago (in slow motion), in the old neighborhood I used to live in. I was told by one of my old neighbor that she was told by the mail person that an old neighbor of ours down several houses from where we lived had passed and that his wife, with medical problems of her own, had to move to an assisted living facility.

I called and talked to the daughter who I did not remember and I’m sure she did not remember me. The daughter was absolutely unmotivated and had worries that she needed to tend to.

I dropped by the house later that week on my way to a social event with a signed offer, deposit check for $100 and one of my business cards. Note, usually don’t make a visit to a property unless I get the invite (motivation) over the phone. Never heard anything for about a month or so…then…I get this call from an attorney. All he said in the voice mail message was that he is an attorney and for me to call him at the following number. Now, my mind’s going over and over events in the past few weeks and to make things worse, it was late in the evening when I got the message so I had to ponder the vast emotions I had until the next morning. Called and spoke with the office assistant and had to wait several hours to call this attorney back again.

The final outcome was that this attorney was the old couple’s attorney and he was handling the estate which was going through probate. I don’t know specifics, but I think the gentleman had another child out of wedlock that was causing some legal difficulties and I suppose the wife had some disorder that kept her from being legally capable of handling affairs relating to her and the house.

The attorney told me that their daughter gave him my information and that she (only child) was interested. I did the deal within 90 days for the exact price that I offered…all the time the market value was going up.

When minor fix-ups and sprucing up was done, I made what I consider unbelieveable money…all told over $83,000. I just fell into this one and was fortunate to be able to do what I said I would do.

Your suggestion of always reassessing the situation and results with points of reference as a learning tool is excellent…always good to learn from one’s mistakes and misfortunes and even better when you can learn from someone else’s good or not so good fortunes.

Keep up the informative postings.

and the best to you…

Negotiating with Seller??? - Posted by Wade

Posted by Wade on September 10, 2002 at 16:40:38:

O.k. I found a house listed in the paper for sale by owner it was listed for 60K. Houses in that area I already knew were selling in the 90’s. I saw the ad Sunday morning in the local newspaper. I called sunday evening and ask to see the house on Monday. I was told the husband would call me back to set up a time. (The owner of the house passed away and the daughters who inherited the property lived out of state, someone was actually selling it for them. The strange thing is that about 8 years ago I lived in the house next door) Anyway, I never heard from them. Monday I road by to check the house out for myself. Everything looked good. Basically all that was needed was cosmetic repairs. While sitting in the driveway (11:30am) I called back, the same lady answered and I asked her if that price was negotialble. I asked her if she thought they would take 55k, she said probably not but someone would call me back. I knew how good of a deal this was so I called back about 2 hours later(1:30pm) and actually presented her with an offer of 57.5K. Again she said her husband would call me back. Never heard from them. I finally got impatient and call my agent (Tuesday 1:00)to see if she could do anything. They told her they were going to repair the house themselves. Today I road back by the house and the husband and his wife were both there taking out the carpet. I talk the the man for about 45 minutes. He explained how he was getting so many offers on the house that he thought he wasn’t asking enough. He said he was going to pretty much take out the carpet, clean the place up, and get it appraised and then decide if he was going to put any money into the house. All I could do was explain to him what I was trying to do, and I ask him to call me if he decided he didn’t want to mess with it and wanted to sell it quick. I left him with my name and number once again.

The man was also telling me about someone that bidded on the property. He explained that this guy was a Hustler, He actually said Hustler 3 times. He explained this guy called with an offer, then called back an hour later with another offer, than called back a third time with another offer. I was like WOW he must be a hustler. I ask the man what the guy bidded and it was my numbers I bidded. This guy did not relize he was talking to the hustler. I’m sure when I left his wife explained who I was and now he can add another chapter to his story explaining how the hustler slid threw the back door like a theft in the night trying to negotiate a sell. Only joking, I am really not sure if i should look at this is as positive or negative . I don’t know if I was to pursistant or if i should have even put in a low bid. Now that I look back, I probably would have offered the full 60K or even more than 60k on the first phone call. Then again I don’t know if they ever wanted to sell the house to begin with. I guess I’ll take it as a lesson learned. If any of you could suggest me doing anything differant, I’m all ears. I guess its on to the next deal.

Thanks in advance

Gerren

Re: All ears? - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on September 10, 2002 at 19:45:59:

I hope so.

A $60,000 asking price in a $90,000 neighborhood might just be called " a steal". Several pretty sharp people have told me “that you do not steal in slow motion”.

The deal that you desctibed is there for the person who can shut up, get off the phone, and get a contract signed. Other than that you did fine if you were only practicing.

Re: All ears? - Posted by Wade

Posted by Wade on September 11, 2002 at 17:02:53:

I was far from practicing Ed, I was there to make the deal. And I would have gotten it if the seller would have had ANY intinitions on selling. When I called, the wife asked me if I was an investor or wanted to live in the house. What these people were doing was seeing how many calls they would get on the house to see if they themselves could make some money on the deal. In my opinon the house was never for sale. There wasn’t even a for sale sign in the yard. I’m very new to this type of investing. I believe I did everything in my power to close the sell. Unfortunatly the seller wasn’t as serious as I. I asure you it wasn’t practice I don’t like to waste time on senseless things expecially when that much of a profit can be made. My only question is should I have presented an offer than wait for a response or did I do right be calling 3 times in a day in a half.

I know I’m being short and if your affended I’m sorry.
It’s been going through my head now for about 26 hours what I could have done differant.

Gerren Babin

Re: All ears? - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on September 11, 2002 at 18:31:39:

First off, let me say that there is nothing wrong with practicing.

Sounds a bit like you encountered a pro here, and that is good too. There is a lot to be learned from a pro.

Here are a few things that I have learned to do or not to do. Other than getting what info I can about price and terms from the seller, I never talk money on the phone.

When presenting an offer it will always be in writing, and there will be no time to “shop” my offer. In other words my offer expires in about three minutes and you want it, or will counter it right now. I have other properties to look at and can not give the seller any time to shop around.

My offers are made face to face, and it is seldom that I will meet with the seller unless all the parties on the deed are at that meeting.

As for the frustration period that you mention(26 hours), we have all been there too. Here is one of the things that I do cope with that stuff. Write down the ten most important points about this encounter, on a sheet of paper. Put the paper away in a drawer or file, and forget it for three days. Then go back to it and review it, with an eye toward learning from it. This can be an excellent learning tool for you, so good luck and keep up your studies.

Re: All ears? - Posted by wade

Posted by wade on September 12, 2002 at 16:14:42:

Everything you said made total sense to me. I will definetly try it out. You probably just saved me alot of wasted time and hopfully more closed deals. I really appreciate you going into as much detail as you did. I will also keep studing trying to master a praticular style that fits to me. Again thank you for the post and good luck to you also.

Gerren Babin