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Michael Quarles

Sellers are Jumping off the fence..

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Yes, yesterday for L/Os. I have been able to send out 6 or 7 short offers this week and picked up one deal so far. Today dead.

Screwy market ;)

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OK looks like two deals so far from the seller rush this week. Although the paper work is not signed yet, dates are set to see the houses. Still working on a few more sellers.

 

Man these sellers have attitudes. I have increased the option considerations this year, weaker dollar you know, and most of these sellers all want a cut. Forget it. Let's see: I charge No commissions, no fees, I pay for the marketing cost and administative cost. I pay for the gas to move my a$$ to show these houses. ;)

 

Although I am a motivated buyer and have to strike fast when there is a surge, I am really having to work the take-it or leave-it attitude and not show my motivation. :P

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Steve, I agree. We're doing all the work and so we've got to hold on to as much of that option money as we can. On the other hand I can understand the concerns of the homeowner who worries about tenant damages and the like. I can usually work with someone like that. It's the greedy SOB who takes umbrage at my making a buck and who thinks I should be working for tips that makes me dig in my heels.

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I have increased the option considerations this year, weaker dollar you know, and most of these sellers all want a cut. Forget it.

 

Ok, I'm not quite to the point of making a deal, I mean, I've spoken to some sellers, sent some offers but that's where I am.

 

I must say though, when I read the manual, I felt the same way about sellers wanting a cut of the option money. remember, I'm not at that point yet, and it's never been mentioned but here is how I feel about it right now...

 

ABSO***LUTELY NOT. Not a dime. Not a nickel nor a penny. They don't deserve a cent of it. We paid for the marketing to get to them, We provide the solution to their problem, We deserve a reasonable fee.

 

If they want it cheap/free they can sell their own house by themselves to mitigate costs.

 

Unreal. I just can't even imagine the audacity. Does anyone really split this money?

 

That's like going to a lawyer to sue someone. When you win the suit, you tell the lawyer "hey, I deserve a cut of your fee". doesn't make a molecule of sense.

 

Maybe I'm off base. Just burns me up inside.

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I have increased the option considerations this year, weaker dollar you know, and most of these sellers all want a cut. Forget it.

 

Ok, I'm not quite to the point of making a deal, I mean, I've spoken to some sellers, sent some offers but that's where I am.

 

I must say though, when I read the manual, I felt the same way about sellers wanting a cut of the option money. remember, I'm not at that point yet, and it's never been mentioned but here is how I feel about it right now...

 

ABSO***LUTELY NOT. Not a dime. Not a nickel nor a penny. They don't deserve a cent of it. We paid for the marketing to get to them, We provide the solution to their problem, We deserve a reasonable fee.

 

If they want it cheap/free they can sell their own house by themselves to mitigate costs.

 

Unreal. I just can't even imagine the audacity. Does anyone really split this money?

 

That's like going to a lawyer to sue someone. When you win the suit, you tell the lawyer "hey, I deserve a cut of your fee". doesn't make a molecule of sense.

 

Maybe I'm off base. Just burns me up inside.

Here's What Works For Me: I tell a L/S that, normally, in addition to the fee I receive from the T/B, I usually get the 1st month's lease payment that's made...but, in their case, I am willing to waive that and let them keep it. In reality, I'm not giving away anything...but to the L/S, it appears that I am. That ALMOST ALWAYS keeps them from asking for a cut of the option money.

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Here's What Works For Me: I tell a L/S that, normally, in addition to the fee I receive from the T/B, I usually get the 1st month's lease payment that's made...but, in their case, I am willing to waive that and let them keep it. In reality, I'm not giving away anything...but to the L/S, it appears that I am. That ALMOST ALWAYS keeps them from asking for a cut of the option money.

 

Too many Michaels on the forum now, it's confusing! (I thought you replied to your own post)

Not a bad suggestion at all, taking a little more and then giving some back to settle the sellers need to feel like they negotiated a better deal for themselves.

 

I've never run in to this sort of problem yet, when a seller tells me they'll consider doing a lease purchase with X amount of money down, I pretty much tell them that it sounds like they already know how to do this and I'm probably not going to be able to help them very much. I did have on seller who explained to me her situation and that she would want 1 months rent to have in her bank account in the unlikely event that anything DID happen where the tenant/buyer didn't pay on time and I was fine with that. I think that sort of request is reasonable and fair, but there is a big difference between a seller who's a little cautious and makes a reasonable request and a seller who makes a problem out of someone else earning a profit for providing a service like what we provide.

 

I guess it goes back to motivation... are they highly motivated sellers, or are they comfortable with things staying the way they are enough that something as minor as option money gets in the way. If I ran in to a seller who wanted to keep me from earning a fair profit, I'd say "Thanks but no thanks!" and move on to the next prospect!

 

I just tell them before any of this comes up that rather than them paying a commission or any fees, I provide my service to them for free and get paid by the tenant/buyer and that's how my company gets paid. I let them know that I only get paid when a tenant/buyer moves in and that the fee is large enough to weed out anyone but serious buyers. Most people are fine with this because they see the value in what they're getting and that it doesn't cost them anything at all really....

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