Open House selling strategy (Kinda Long) - Posted by Reif


#1

Posted by JPiper on January 13, 1999 at 01:32:54:

My comment would be that I don?t care for your strategy much. Just as you fear, I think your strategy has the potential to backfire.

Here?s my preference. I like to speak with each of the callers individually by telephone. Yes, it takes more time. But this is a people business. And eventually you?re going to need to talk to them anyway, because they will have questions. How are you going to handle a variety of questions and still show the property with multiple parties?? So I like to speak to each of the callers, answer any question they may have, ask my own questions ?..like how much can they afford per month, how much do they have to put down, how is their credit, etc, etc.

If I were going to show to multiple parties I would want to make sure that each of the parties could afford the place, understood the nature of the transaction, and had the cash down. Then it would simply be a question of showing the property to see if it fit into their needs. They may still have questions, and I may have a few that occur to me too, but they won?t be things like ?10%?? Wow?that?s high?.

JPiper


#2

Open House selling strategy (Kinda Long) - Posted by Reif

Posted by Reif on January 12, 1999 at 23:04:30:

I FINALLY have my condo I bought ready to show. Ran my ad Sunday through next Saturday. Have 20 responses so far (on my answering machine), so I’m having an open house Saturday morning.

I called everyone back and got mostly anwering machines (kind of on purpose). I didn’t put the price or the terms in the ad, I just said Lo Down and Owner finance (plus location and bed/ba of course). Told everyone I was showing the place as an open house on Saturday at 10 AM.

I’m hoping to get 99,900 (comps at 92-94K). I want minimum 5K down, I’ll carry the rest at 10% ($832/month). HOA, INS and Taxes are $228, for a total monthly to the buyer of $1060 (or less with more down). Comp rents are $925 - 950.

Funny, only one person I talked to (out of three) even wanted to know the asking price. The others I just told them I was showing it on Saturday and they said, “OK.”

The question is: When these folks start getting there and asking price, terms, etc, I’m hoping to get a little bidding war going - but I wonder now if it may backfire because if one says, “Hey, that’s 5-10K over priced,” or “10%?! - that’s outrageous!” will they all walk out?

Second, I’m wondering on the mechanics of the negotiations. I’m thinking I’m just going tell them it’s $99,900, and 10% note and how much were you thinking of putting down?

I’m going to bring several offer sheets (with the essentials filled in: total price and interest rate) and credit applications and just let the folks take them. I’ll tell them, “I’m going to make a decision soon, so if you want your offer to be considered, you need to get it to me ASAP - now would be a good time.”

The last hard part is explaining contract for sale, but I think I’ll wait on that until I have the buyer I want.

Any comments on this strategy?

Thanks,

Reif


#3

Re: Open House selling strategy (Kinda Long) - Posted by Doris Shanks

Posted by Doris Shanks on January 13, 1999 at 13:59:33:

Just a couple comments that come to mind. Since
you have already set up the open house - go with it
but don’t try to negotiate with everyone all at
once. You will immediately find it won’t work
anyway.

I would have a sheet of general info. on the
property ready to pass out as people arrive and it
could include your asking price and terms etc. It
could also invite interested parties to make an
appt. with you to discuss details - other possible
terms etc. - in a one on one (or couple)
get-together. How can anyone expect to negotiate
any deal or sale with other prospective buyers
hanging over their shoulder??

If some lookers (and there are always some) are not
interested - they will be eliminated up front and
you won’t be wasting your time with them. The
interested parties will be the ones who will make
an appointment to get down to business.

Hope this helps. Just an opinion from a newbie.

Doris