When You Make Offers So Low They Dont Call You Back...
What do you do to keep the negotiating doors open when there is still room to negotiate and make a profit?
I have had sellers say they will need to speak with the spouse but dont hear back from them.
Verb
Discussion boards - where we help people help themselves[ Edited by verbatim on Date 02/04/2004 ]
It depends on who you are negotiating with.
Give some examples of deals that didn't work out or something and we'll go from there.
Roger
In that case contact the Seller and talk your way back in.
Any excuse will work.
"I see in my notes that I may have overlooked something in your kitchen that might help me to adjust my offer..."
Just be creative and when you are face to face, find out as much as you can about other interested buyers, the Seller's timeline to be rid of the property, their reason for selling, etc.
There are always other potential buyers looking at a property, and Sellers develop a sense of what their property might yield from talking to them.
Your best shot at the deal may be when talking with this Seller in his house.
Good luck.
[addsig]
As part of prescreen process you make sure that the spouse is there when you go to visit the house, seat and talk. You also make an gentleman agreement that obliges the homeowner to tell you in the end of the conversation, or call it the interview, if they like your ideas and type of offer/s or they don't. Make sure that they understand that you want be mad if they do not like it because after all is uo to them to be hapy with any decision they'll make. [ Edited by omega1 on Date 02/05/2004 ]
Hey,
As Roger said, we need some examples to understand exactly what the problem is...
BUT based on the question it sounds like your offers are so low that the buyer is not taking you seriously. Basically, you are "playing a game with them".
So for example say they have $50k in equity (and they know it) and you are offering them $2k in their hand to walk away from the house, 99.5% of sellers are either going to walk away from you laughing or come up with some excuse.
Now I know that almost every REI guru in the world says to make insanely low offers and then negotiate up a little bit, but that does not work in the real world.
Run the numbers, figure out your required profit and then make the homeowner that offer. Don't try to "pad" the offer. If you do your homework right, you will make a nice chunck of change and will get people to sell you their house.
By the way, I have bought a fair number of houses from homeowners who had received lowball offer the week before.
If you give in on price be sure to get something valuable in return like longer to close or less earnest money or a nice antique table and chairs. That is all just part of negotiating
Good LUCK and Thank You
Hope this helps some
Ted Jr
Well, I was wanting to wait on a response from the original poster, but since Bruce has already touched on the real issue, then I continue.
You need to set your guidelines for buying property and stick to it. For example, if you want 80% of FMV only, then that would be your offer. IF the seller is asking less than that, then you buy, you don't try to lowball an already good deal.
Now if you're offering a fair deal for a quick sale and the sellers' just have unrealistic ideas on profit or FMV then you're doing nothing wrong. Let them call you back when they are really ready to sell.
Roger
dont fall in love with a property either, if it doesn't seem worth it to pay more than you want, then don't. There and plenty of others out there.