Getting house under seller contract BEFORE negotiation?

[Kimberly Anderson]

Hey guys, I was on YouTube recently and I watched an interview with a seasoned virtual wholesaler. In the interview the wholesaler said that once he gets a motivated seller to call him via direct mail marketing, he allows the seller to make him an offer price for the home and if it's a reasonable offer, the wholesaler sends out the contract for the seller to sign before he (the wholesaler) even steps foot on the property. Then, once the wholesaler receives the seller contract, he or another person will take a look at the house, assess repair costs, run comps, determine ARV, and therefore the negotiation can be based on the actual condition of the home without any risk of losing the assignment. I'm wondering if this is a good strategy, considering that hours of time won't have to be lost on getting comps or negotiating with someone that's not as motivated as they claim. It locks the property down for a minute which can buy me, as a wholesaler, some more time for negotiating. But I recognize the caveat of losing the EMD if a negotiation with the seller can't be made. What are your thoughts? Has anyone tried this before? I'm new at wholesaling and I'd be interested in any input. Thanks!

[Wayne Brooks]

Don't see any great advantage, unless one thinks the seller becomes psychologically committed to selling, even when you need to drop the price later. You've still got to do all the inspections/due diligence, and negotiate the price down to where you need to be. If the seller offered price seems close, you're going to go see it anyway.