Negotiating Tips Needed

[Benjamin Barredo]

@P.J. Bremner @Darin M. @Charles Jones @Robert Smith @Brian Gibbons

So I have an interested buyer in a flip property I'm wholesaling. I'm asking for $34,000 and it covers a $5,000 fee for me. I quoted the work at $10,000 with an ARV of $75,000. The property is located on a dead end street and on the end of the street is an industrial yard that belongs to a rail road company. It's a gate but it's never used but still not a pretty sight.

The buyer argues that he comps it with an ARV of only $60,000. He wants it for $27,000 but says he's not saying no but wants me to talk to the sellers about lowering the price. I'm pretty confident that the seller is stuck at her $29,000. I am willing to take a smaller fee just so I can close a deal and get it under my belt but I don't know if I can get it down low enough to make money myself. Even if I just walked with a couple thousand I'd have to talk the seller down $4,000 which doesn't seem like a lot now that I write that.

Any advice on how to approach this? I did tell the guy that I estimated the work at $10,000 even though my original analysis said $7,500. I guess he didn't hear me say that or chose to just go with the analysis price.

I really need to close this deal. I need the money to justify what I've been doing for the last month and to pay for some more marketing.

[Benjamin Barredo]

@P.J. Bremner I think the buyer is most likely right. The House sits on the dead end. The neighborhood is great but these houses (4 of them) sit right in this nook where the gate to the industrial yard is. So when you walk out the front door and look right you see industry like 30 feet away. So I don't think he's wrong. I just used the seller's numbers instead of my own - which was a mistake looking back on it. I should've negotiated more with the seller. I'm just a soft newbie. I'm so ashamed. I hang my head in shame as I write this....not really. I am smiling.

I am going to look at my comps again and also rerun my analysis at the buyer's comp price and see how much room there is to work.

The seller is not super motivated. I think they are giving me an opportunity more because they just don't feel like dealing with the property but they are flippers themselves and retired brokers who would rather sell the property but don't have to. I think they felt a tug in their heart strings for me and decided to give me a chance. I looked like an mumbling idiot when I met them because I had no idea what I was doing, my contract was all jacked up, and I had more questions then answers. So I'm afraid I come to them with this price and they tell me to shove off. I know we have a contract so either way the property is still mine until after 12/9 but still....I just want to close!!!!!! I know that's bad but it's true. I just want to close so I can say I did. This is the closest I've come to it. lol.

But...I'm going to take the above advice and hold back. I'll see how the seller reacts to the offer but if they say no, well, they say no. I'll keep pushing the property and hope a buyer lands in my lap. Maybe I'll find one at the meet-up I'm going to tonight.