Posted by d.moren on February 09, 2000 at 18:25:34:
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What do I say to this seller? - Posted by David-Mi
Posted by David-Mi on February 09, 2000 at 09:18:10:
I have a guy that is pretty motivated to sell because he is delinquent in the property taxes and he is just tired of of being tied up the property.
He said that he doesn’t know what the house is worth but that a house in his neighborhood sold for $100,000.
There is a $37,000 balance on his mortgage.
I asked him what he would take for an all cash offer and he said “I don’t know, I’d have to wait until you know what it’s worth”.
He said he is not good at this sort of thing (negotiating)
Obviously I would like to make as much money as possible by paying as little as possible. As long as he doesn’t know what the value is (If he hadn’t done his homework it isn’t my fault) I can do this, but he won’t even quote a price to me until “I” get a market analysis on the house.
How do I sidestep the issue and avoid giving him information that I worked for? If the house is worth over a 100 k he is going to want most of his equity and I am at a disadvantage. What he doesn’t know will put more money in my pocket!
Please help!
Thank you,
David
Re: What do I say to this seller? - Posted by MAC
Posted by MAC on February 09, 2000 at 15:10:02:
David, actually this homeowner is VERY good at negotiating. He’s following Rule #1: always let the other guy talk first. He’s playing you. Honestly, have you EVER met a homeowner who doesn’t have an idea of the value of their home?
Re: What do I say to this seller? - Posted by Chris
Posted by Chris on February 09, 2000 at 11:33:40:
David-
Have you computed the total of all liens and back payments on this to get an idea of the equity? Any deferred maintenance? What is the tax bill?
Make your offer in writing. Consider multiple offers. When presenting them tell the seller that a cash offer/quick close requires a discount. If he is willing to seller finance you will want to go the angle of how much more than the selling price he stands to make due to interest. Make sure that he knows that each offer stands on its own-NO mixing and matching as he will probably want to do.
Forget about presenting CMAs or appraisals to this guy for him to use as ammo against you. If he has not done his homework too bad. If he is motivated, he will want to sell. If he is not, go on to the next deal.
-Chris
Re: What do I say to this seller? - Posted by Judy
Posted by Judy on February 09, 2000 at 10:48:22:
David,
You could say to this guy that you’re an investor and very rarely do you pay full price – This is a business for you and you’re there to make money. Then, go ahead and give him the price you want.
I also agree with the others, try to get some hard financing in place so you can give this guy his money right away.
Sounds like he just wants to be lazy.
Re: What do I say to this seller? - Posted by Darin
Posted by Darin on February 09, 2000 at 09:52:54:
Stop talking and put it on paper in front of him. Make it easy for him to sign. Make it easier for him to singn and close the deal with you than him chasing around trying to find value. If a realtor comes along, my guess is they will screw your deal up. Realtors are idiots (most). Maybe give him cash and take over the mgt.