Never Make The First Offer
I was taught to never make the first offer on a house.
I usually say the following:
Me: "If I offer you all cash and can close within 14 days what is the least you will take for the house?
Seller: Well make me an offer?
Me: ???????? (This is where I get stuck)
What are some suggestions on how to overcome this objection?
Thanks,
Nate
[addsig]
Nate...
I always want to be the first there on a presentation....
What you’re talking about is the classic fear of lose experienced by both the seller and the buyer...
Your offer should be at the price you are willing to buy the property at...
That number is independent to what the seller may or may not accept...
Basing a number solely on what the seller wants is a bad business practice... and during your presentation you should have made it clear the cost savings involved and the value of your offer.. If you don’t you will most likely not succeed...
Your inbound script should have asked them what they are asking for the house and how they made that determination....
From the point of the inbound telephone call to the offer you should have continued to gather the motivation of the seller and use that information to support your offer price….
One of the questions you should have asked should be regarding you buying “subject to” and if you received a yes answer than your ability to make more money has just increased…
_________________
Michael Quarles
"Marketing is the key to Successful Investing"[ Edited by IBuyHousesInc on Date 02/09/2006 ]
Brenda-
If they have a number in their head, what criteria do you use to counter with a lower number? (Comps, current rents, etc?)
bgross, D_random, Michael
Thanks for your advise.
By the way, Michael I am actually going through a full presentation asking if they are open to the loan being taken over and why they are selling. The above question is only if there not open to the idea of their loan being taken over. Its the very last question I ask before I give up on the prospect.
Anymore ideas?
Thanks,
Nate
[addsig]
If I am at their house, I have already done researched the comps. Usually I will print the comps off and a map and drive the neighborhood prior to the meeting time. If it is a phone call I may or may not know the area. I also ask what is their number based on - why that number. If they say "because I had an appraisal done last week", or "the house next door sold for that last month", etc I know it is not a number that I can work with. I they say "because I had an appraisal done two years ago" or "that is what I owe", etc then it is worth my time to investigate further.
There is never any harm is saying that I will get back to them tomorrow or this afternoon if you need time to research comps. Sometimes when people call me they expect me to give them an offer on the spot. I usually say "I wait until someone calls to do my research. I use to research prior to sending out letters but I wasted a lot of time researching houses that nobody wanted to sell. Now I wait for a phone call from an interested seller before I do my research. " They always understand that.
"It takes me a lot of time to research a property, and if you already have a number we could just cut tot he chase'
I like that...