What do you say when sellers ask...... - Posted by charity

Posted by Merle on October 31, 2000 at 06:07:07:

Well stated.

I think I mentioned the comparison to eating in a restaurant. Do you eat what the menu “sells” or do you eat what is good for you?

Never surrender leadership to the menu!

Thanks,
Merle

What do you say when sellers ask… - Posted by charity

Posted by charity on October 30, 2000 at 20:08:36:

“What are your buying programs?” The reason I ask is because I don’t think I am handling my seller calls well. When people call from my ad, that is the first thing they ask. Always something like “What do you do?” Any pat answer you all give?

charity

Re: What do you say when sellers ask… - Posted by Jim IL

Posted by Jim IL on October 31, 2000 at 02:57:53:

Charity,
Lets see, I was just talking about this with my new wife. She will be handling some calls now, and wanted a brief over view of how I want her to handle each seller and buyer.
We played a little game where she was the seller calling me and vice versa. It helped quite a lot.
She had many of the same questions you have here.

“What are your buying programs?” and “What do you do?”

There are NO pat answers.
When sellers ask me, "So, I was calling because I want to know how THIS works?"
or something like that.
I answer them with, "well, I buy homes all over the area, in many different price ranges and conditions. Therefore no deal is like another, so there is really no set WAY we buy the homes in general."
I first need to gather info on your home and some other things to determine whether or not we can help you? Mr. Seller.
I am not going to waste your time or mine. So, I will be direct, and ask you a few things that may seem out of the ordinary, but, this will help me to make you an offer or not very quickly, usually within 48 hours.

And then I gather info.
The sellers then ask again usually, "How will you buy my home?"
Well, Mr. Seller, I can break it down a little. We basically buy homes TWO WAYS, either all cash for a severe discount, or terms.
They always want to know about “All cash”, so I tell them, I will pay up to 60% of FMV for a home.
And most say, "Oh, well, that won’t work because…"
And that is when we introduce terms to them and set an appointment to "Inspect the home to see if it qualifies for our programs."
This throws the burden to the seller, and helps us stay in control.
The seller needs us to buy the home, we do not need to buy it.
And as long as you keep this in mind, you will be fine.

Sorry to ramble, it is late, and I cannot sleep,
Jim IL

Re: What do you say when sellers ask… - Posted by Ginger Harris

Posted by Ginger Harris on October 30, 2000 at 23:50:47:

I have never placed an ad. I purchased over 20 units and moved 8 houses all with no-money down and I was agressive and bold and then people started coming to me asking me to buy their house. I feel that I never tried to prey on the sellers but I tried to inform the sellers and fill a need that both of us had in common. The deal must be good for both sides or you might end up in a mess. Aren’t there enough ads for you to call on in your area? Can’t you drive around and find FSBO’s? How about a local homes magazine and use real estate agents? It sounds like you are sitting back reacting instead of being proactive. Are you unsure of the risks? Is all of this outside of your comfot zone? If so, I would not put myself in creative financing situations if I were you. Ginger Harris

Re: What do you say when sellers ask… - Posted by Merle

Posted by Merle on October 30, 2000 at 22:03:54:

Quite likely you could get as many good answers here as there are people buying property.

We are probably the most different. First, our ads (when we have to run them) do not say, “I buy houses.” Our ads say something like, “Wanted. Nice 2-3 BR. To $75,000. Cash or terms. Close quickly. Merle E Woolley 999-9999.”

Rather than telling them in the ad that we are “buyers,” we do that on the phone. We ask them about the house. Their price and how they arrived at it. Why are they selling? Then, we explain that we buy homes to resell and help people who cannot qualify for a home loan.

We have a set plan we follow to make all this work. First of all, we pay up to 85% of the market value for the property. Then, "assuming you have priced your home at the market value, could you or would you consider selling it for (calculate the 85% quickly)?

Before they answer, “we have the cash and can close within a few days or we can write the contract and close in 6 months. In other words, we can make it very easy to sell your house.”

Depending on their answer, we proceed with more discussion about how we buy … drive by first, then call for an appointment, etc.

It would be impossible to list all the possible things we say from here. My main point is that we do have a set “program” that we try to fit to the seller’s needs. If it doesn’t fit, we say thanks and end the conversation.

But, then again, what we do is different from most everyone.

Keep on keeping on, Merle

Re: What do you say when sellers ask… - Posted by JoeKaiser

Posted by JoeKaiser on October 30, 2000 at 21:32:17:

Charity,

It’s really not about “pat answers.”

The seller is really asking “what can you do for me?” That’s the question you need to be answering and you can’t do that until you know what they’re trying to accomplish.

So when they ask . . . “what are your buying programs?”

You say . . . “Well, it pretty much depends on what you’re hoping to do here. Everyone’s situation is different, so I really don’t have anything that you would call a program. Tell me what your looking to do and let’s see if we can put our heads together and figure out a way to make it happen.”

Or something like that . . .

Joe

Re: What do you say when sellers ask… - Posted by Rob FL

Posted by Rob FL on October 30, 2000 at 20:17:32:

I don’t know how your ad is worded, but it should say “I buy houses” or something similar. That is what you do. You buy houses. As far as programs go that really depends on the situation and what the seller needs/wants to do with their house. Each situation is unique.

When someone calls me, the first thing I do is ask them to tell me about their situation. I want to find out what the seller needs to accomplish. After that, then I ask about the financing, any liens, and the value of the property. I want numbers here. Lastly I want an address and property info like beds/baths/garage/pool/etc.

Re: What do you say when sellers ask… - Posted by JoeKaiser

Posted by JoeKaiser on October 31, 2000 at 23:08:39:

Merle,

If you offer 85% upfront, how do you know what the seller might have accepted? That seems silly to me. What if they’d already decided to accept the first offer that comes it in 70% or better. Why pay $42,500 for a $50,000 house when the sellers are happy to get $35,000 to be done with it?

Different, yes, though I’m not sure different equals better. Frankly, 85% for a “quick cash” sale isn’t much of a deal.

Joe

Re: What do you say when sellers ask… - Posted by Eduardo (OR)

Posted by Eduardo (OR) on October 30, 2000 at 23:55:06:

Merle–

After having thought about your great attitude and successful program for some time, I’ve come to the conclusion that the basic difference between what you do and what many of the others do, as they describe their activities here on this site, is that you are focused, “zeroed-in,” on your game which the seller must play if they want to sell (or you’ll go elsewhere) and they are willing to play whatever game the seller they are talking to at the moment is playing. Just as you do, I basically tell sellers the price I can pay. If they can’t accept my offer I thank them nicely and go down the road and buy another house on my terms (there are hundreds, if not thousands, to choose from). I don’t understand why one would feel the need to accede to any particular Mr. and Mrs. Seller’s requirements when it isn’t necessary to one’s overall business plan. Maybe it has something to do with lack of confidence in one’s own goals and decision making abilities. If you don’t feel you know what you’re doing, you let others, including your attorney, banker, real estate agent, title company, relatives, latest guru, and even your opponent, help you set prices and make your business decisions for you. I think of this as the “scattered” approach to real estate investing. My thoughts. --Eduardo