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Making Offers. What If My Seller Isn't A Motivated Seller?
Sellers; now they're a funny bunch of folks.
Like most real estate investors, I talk to a lot of sellers as a result of my marketing. And, they always have a story to tell. One of the first things you learn as a real estate investor is that you need to pull up a chair, grab your coffee and prepare to listen without interrupting. Now I am the first to admit, that this can be tough to do at times. Some folks want to enlighten you on the family history for the last 100 years. But at some point, they will tell you how much they need to sell the house.
When you ask them what repairs need to be done on the house, they will give you a list of things. However, when you ask them "What repairs and upgrades would you do if you were going to live in the house"? Well, then they will give you a much longer list. It is just part of the process. It's actually kind of funny that the kitchen and bath didn't need to be upgraded until they were going to have to live in the house.
At some point in the conversation I will usually ask the seller if they have considered doing the necessary repairs before selling the property. I remind them that they would probably be able to sell the house for a lot more money. They always tell me that it just costs too much for them to do the work. Usually they will also admit that they just don't want to do that much work. The sellers already know that it is going to be very costly and time consuming to renovate the house; that is until you give them a low offer to buy the house "as is". It is at that moment, that everything takes less time and costs less to repair or renovate.
So what do we do? Part of what I do is let them absorb the information while I continue the conversation. I listen to their objections; I listen to their stories. Even though they understand intellectually what you are saying, their emotions take over. We all want as much for our properties as we can get out of them. These folks are no different. As a real estate investor, most days I feel like I am half investor and half counselor. When the conversation is no longer going forward, I usually tell them to take some time and think about my offer, and I let them know when they can expect me to check in with them.
One thing you need to remember is that just because they aren't a motivated seller today, that doesn't mean they won't become a motivated seller in the future. Circumstances change for everyone over time. I used to take these folks off my mailing list when they wanted too much for the house, but I don't do that any more. It may be that they need to hear this same "low offer" from a couple of real estate investors before it really sinks in. Or, maybe a little time just needs to pass before they become a truly motivated seller. It really doesn't matter. What does matter is that if you are the only person that follows up with them in periodically it's likely that you will be the one that ends up with the house.
Sure, they may find someone that will pay them more for the house. That's always a risk. But if you are a savvy real estate investor, that's OK. Hopefully part of what you have learned is when to walk away from what would become a "marginal deal" if you raised your offer.
