How soon do you start negotiating with motivated seller?

Question

The first call is to always find out if they are motivated or not, after you find out they are motivated, do you look to schedule an appointment for the house and negotiate in person, or over the first call do you right away start negotiating over the phone? How soon should you start talking for a deal? Just curious to see different opinions and strategies.

Jonathan Greene · Answer

What's the point of making an offer over the phone, before seeing the property, if you are local? If they ask me for a cash offer before seeing the property, I ask them to tell me their number and I will tell them if it's even worth coming out. If it's high, I just say it doesn't work for me, call me if you come down. I never give an offer before I hear what they want and I never make offers sight unseen if I am local. All that does is make you go back on your word when you see the condition in person.

Max Versteppen · Answer

Even when the sellers are anxious to sell their home, negotiate so that you get the best price and terms.

Find a motivated seller. Look for the combination of a house with a lot of equity and an owner who wants out fast. ...

Determine your price and terms. ...

Meet with the seller. ...

Offer incentives. ...

Wrap up the deal.

Steve Morris · Answer

Call them and build a relationship.  Ask them questions about the property and what their issues/problems are AND LISTEN!!

You hear enough problems, you can usually hit them with the "have you thought about life without your rental"?  In most cases, the good deals take some time.  Sorry.

Jonathan Greene · Answer

@Joe Cassandra the thing I hate most in life is having my time wasted because I could be using it so much more effectively on my own, especially with kids. So I agree, I hate going out and listening and then them saying they want market price. Of course, it's easier for me because I am licensed and can pivot into any way of 5 to sell their house, but I don't leave for an appointment unless I know what they want for the home and if it's high I don't bother if they aren't open to listing. I explain to them why. That I am an investor first and I will pay a fair price, but only one that works for me and if it doesn't work for me I have other options. If you are just going for you, I wouldn't go out unless the price was in the ballpark.

I'd rather waste a few phone calls then an appointment and I like building rapport, but some people spend 5 phone calls only to realize they got nowhere. I try to head it off by being straightforward, but I always want their number. If they don't want to give it I will send them a range from an automation only and tell them it could fall anywhere in there depending on the condition. The most important thing you really want to know is not their price, but where do they want to go. Once you know that, every conversation is about how this deal can help get them there. I hope that helps.

I value my time a lot and when I travel back and forth to a home and have a bad appointment it makes me really annoyed and I don't think it's worth it. If the appointment is bad it's usually my fault for pushing for that appointment before the person was ready and motivated enough. All bad appointments in person are always our fault in some way. When we own that, we start to figure out what we need to even leave the house.

Joe Cassandra · Answer

I've heard many, MANY opinions on this Jonathan...and curious on your thoughts.

I have a business outside of RE (plus 3 kids) and so my time is valuable.

I've wasted far too many hours going out to a house, sitting there listening to them for 2 hours, only for them to ask for near retail.

But others say "you need to go to every appt because most sellers aren't going to just give you a 75% ARV deal right away. They only do that when they like, trust you...especially with something as deeply emotional as their house."

I'm guessing it's an art.

1.) Determine over the phone if they're a seller that will eventually come down to you...and that only comes with experience.

2.) Or, you build rapport on the phone and then spend a ton of time --- knowing 50% of it is wasted --- talking to non-motivated sellers in-person.

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The argument for "just push for an appointment no matter what" is that most deals won't be 'lie-down' sellers who will just come out and say they will give the house away. You have to pull them towards you...and that's too hard over the phone.

What are your thoughts?

Jaron Walling · Answer

@Richard Prillerman Great question man. I find that meeting the seller in person and walking the property shows how motivated you are as a buyer! This is a relationship business. Anyone can spit out numbers over the phone. I like to schedule a meeting and keep the conversation lite. I don't even talk about the property; I talk about life, living situation, and ask questions because that's how you find the seller motivation. I would make an offer in person if they agree to another meeting. On my last deal I made an offer on the 3rd meeting and walked the property twice.

Joe Cassandra · Answer

Yeah, I'm sure there's a happy-medium in there somewhere. It's an ongoing learning process and love hearing how others approach.

Thanks!

For me, I know every appt. won't end up in a deal.

But (for example) to sit for 90 minutes with a lady jabbering on about her cats and showing off all the trees in her yard (using exact scientific names), only for her to tell me she wants 95% ARV on her beat-up house and throws her head back laughing at my offer...

It's finding that balance.

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The key may be just becoming an absolute pro at building rapport on the phone. Still working on my script and tuning it as every call usually runs the same way.

John K. · Answer

I try to get the negotiations going, on the phone.

I speak to 150-200 people per week, I do not physically have the time to make appointments.

I explain to them that I am very comfortable making a solid offer without seeing the home, provided they are honest with my questions.

If the number I give them over the phone is acceptable, I then make the appointment. I do not come off that number, if at all, if they answered honestly.

Joe Cassandra · Answer

Eh, I'd disagree on that point.

You're talking from the viewpoint of you being a seller...and a non-motivated seller at that.

Motivated sellers talk much differently than how you are talking to these people.

I'm not saying you're doing something wrong, but you're just not a motivated seller.

Most motivated sellers will be happy to give you a number at some point. Or, they don't care very much what your number is as long as you take the house.

Josh Bakhshi · Answer

I get an average of 3 calls a week for different properties.  I tell them that I would be happy to answer their questions about the property if they don't waste my time.  Only once did someone during the conversation give me a number and we went back and forth a couple times.  We didn't end up making a deal and wished each other well.

ALL the other times after I answered all their questions about the property, they ask me how much do I want for it?  I reminded them that they call me so it is up to them to give me a price they are willing to pay.  My advise to people is if you are calling others to buy the house, then you say a number first.

How soon do you start negotiating with motivated seller?

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