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DanielSun

First time meet seller

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An old prospect called, I agreed to meet him because I was not thinking clearly. Here is how my first encounter with a seller went down. here is how I scored.

 

 

 

 

agreed to meet without making sure he is motivated. -20 points

 

agreed to meet, but without making sure ALL decision makers are going to be there. -20 points

 

brought a paper, a pen, took notes whenever he spoke. +5 points

 

 

"I think i would need the option fee, and first and last month. That's how everyone do it" He says.

"option fee is non-refundable and since maintenance is taken care of, the buyer shouldn't have to pay deposits" I replied. He still wanted. I kept silent, after a few seconds he said "well...it's not a deal breaker if we don't get it." +5 points

 

 

"So Mr. P. what is the least amount you would take?" I asked.

"Oh the price is negotiable, I would lower from 370k to 360k, or 365k." He replied.

"alright," i said, "let's say you get it at 360k..." -5 points I later reflected that it was actually a sign he will go lower than that price.

 

 

"This is the option fee you would get, this is the amount of rent you would get," I explained while drawing down numbers, "at the end of the 12 months, the purchase price you would get is..." I calculated in my mind, and came up to $375, before I could say it, Mr. P. said with a smile "$344,000."

I nearly fell off my chair...that's the number he was thinking?

Meanwhile I already wrote 375 on the paper, and he saw it...

-10 points

 

 

It's all fun and I never expected anything since it's first time. Mr. P. was a very nice man, a musician and a part time MEDIATION professor in a college. (how about that, he actually teaches negotiation, LOL) However I actually felt pretty good because while I was talking to him, I really felt like I was in this business, and he took me seriously. So I say it was 1 hour good spent. but I won't waste time in the same manner again.

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Excellent work, Daniel. It may or may not lead to a deal. More important at this stage for you is gaining some first hand experience speaking with homeowners. There is no better education than experience.

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Daniel, that is a great post! Super evaluating every step. By doing that you also anchor in your mind what and how you'll handle it next time. Being in action really makes a difference, right? B)

 

You never know----there still is a possibility for a deal---you could always tell him you needed to re-do the numbers when you got home because something didn't seem right. ^_^

 

Yay for Daniel!!

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