How do you present your offer directly to homeowner?

[Account Closed]

Hello,

I have recently began a direct mail marketing campaign to homeowners in my area. I received a call today from a motivated seller and we have set a meeting to come look at the house. We are waiting until after the holidays. This older couple is retiring and moving up north to their new home. He liked my letter and it was appealing to him to sell as-is, not have to do any repairs/haul away his junk and close on the date of his choice. I explained to him that I am looking to buy older homes to renovate and resell them. He totally understood and even said that I need to make a good profit on it too. So, this seller is understanding of what I am out to do and that when I give him an offer, it won't be a retail offer.

When I meet with him, how should I present my offer? Do I show him the comps in the area? (I have access to MLS). Do I just say the number and not worry about explaining how I got to it?

I have a good idea what I am going to offer and why, but considering its a lot lower than the comparable houses in the area, what techniques do you guys use to help the seller see why your offer is good, despite the low price?

Thanks BP!

[Guy Gimenez]

Your phone interview should also culminate in asking at least 2 to 3 times what price the seller wants considering the condition of the house and that you will make it very easy to sell. I don't personally want to drive 30 to 45 minutes to view a home only to find out they seller wants high retail for the house. You can make an offer over the phone, by email or in person....but keep in mind that your time has value too. If you spend too much time running around making offers before you know if there is a way to monetize a potential purchase, you will be missing leads from truly motivated sellers. Once you get the lead, the interview is the next most important aspect of investing. This is where you determine IF you want to make an offer and IF the seller is motivated.  

Always try to get the seller to give his/her price first, then negotiate from there.