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<Steve>

The Seller's Price

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I just wanted to throw this out here as there has been a lot of talk about market values and the price the seller wants.

 

Getting the lowest purchase price and rent amount is key to getting a good deal. Sellers will always tell you what they WANT not what they NEED. The idea is to get the seller to agree to a lower price of what they need not what they want.

 

I typically talk about price towards the end of the conversation after building a rapport with the seller and have most all of my questions answered.

 

I ask, “Mr. Seller do you know the market value of your house, what your house would appraise for?” The seller gives me some number.

 

I then ask, “So, what is the lowest amount you NEED for your house?” By this time the seller knows they do not have to pay commissions, fees or closing cost or I will remind them and I will get a bit lower number.

 

At this point when I get this number it is still what they Want not what they Need. I will then respond in a way that makes it sound like they are absolutely CRAZY! for wanting such a price. I respond, and then sit very quite…

 

REALLY!? IS THAT THE LOWEST PRICE YOU CAN GO!!!?

 

I then sit quite and don’t say anything else. It may only be a few seconds but it feels like a life time. I can feel the seller uncomfortably squirming in the silence. Then the seller dependant on motivation and situation surprisingly comes up with a number they need and it can be in the thousands of dollars lower than their want price.

 

The goal for me is to get the lowest purchase price the seller needs for his house, to get the lowest price possible to make the deal work.

 

What do you do? Or do you?

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Dear wonderful Steve---who is always here for everyone----this is a very good post. We need to remember this technique. I've been getting closer to this but I usually stop before I get to the "Best" price. :blush: :blush: DANG it!!

 

BUT, I am good at going back a few to 5 days later and saying "the market doesn't want to pay this" or "you know, the comps just aren't supporting the price you gave, ya wanna sell this . . . or not" :P

 

Always more to learn or to sharpen. Well, maybe all you pros don't have a need in this area. I am speakin for myself

 

Thanks for the post!!!

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Excellent post, Steve. In addition, if I run into a homeowner whose price is above market, (always <_< ), I like to play the part of the bumbling fool, (OK, OK. . .let me say it first: I'm not playing any part, I'm just being myself).

What I do is get back to the homeowner and tell them that after looking at the sales data I can't find anything that supports their asking price. "Mr. Homeowner, I'm sure it's me, but can you show me the data you used to set your price?"

Of course, they don't have it because the number was pulled out of their. . .hat, ahem. By taking this approach I have turned the tables and they need to justify their numbers, rather than I justifying mine. It usually serves as an eye opener and reality check for the homeowner.

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Looks like there are a couple ways to put the seller on the hot seat to get to a real marketable purchase price that meets the seller's needs. I think the main point is to not just accept what the seller wants and then try to make it work, but to get to their bottom line to make a good deal. Also, I can't read a seller's mind and what they will accept, so I make an offer that works for me.

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Excellent post, Steve. In addition, if I run into a homeowner whose price is above market, (always <_< ), I like to play the part of the bumbling fool, (OK, OK. . .let me say it first: I'm not playing any part, I'm just being myself).

What I do is get back to the homeowner and tell them that after looking at the sales data I can't find anything that supports their asking price. "Mr. Homeowner, I'm sure it's me, but can you show me the data you used to set your price?"

Of course, they don't have it because the number was pulled out of their. . .hat, ahem. By taking this approach I have turned the tables and they need to justify their numbers, rather than I justifying mine. It usually serves as an eye opener and reality check for the homeowner.

ooooh, yeah the old Columbo technique B)

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