Seller Psychology - Do sellers want to sell their house to a flipper

[John Laney]

Hello, 

I'm starting the process of finding houses to flip in the Newberg Oregon area.  We've put in a few offers but have not yet gotten one under contract.  

My question is how I should present myself when I make an offer. Would an average seller like to sell to "John Laney Real Estate LLC" and know that I'll rehab the house and then sell it? Or would they rather sell it to "John Laney " thinking that it may go to a family?

[Theresa Harris]

Just put in an offer and leave it at that.  Most buyers never meet or talk to the sellers.  If they ask why you are buying the house, simply say you like it.

[Eliott Elias]

Present yourself as a buyer with a offer, nothing more. You don't need to convince them you are a good candidate to buy their property. 

[Lawrence Potts]

Hey John,

Depends on who the seller is. If you're making offers on properties on the MLS, it's typically just whoever the seller believes can close with the most profit. As long as the business name isn't ridiculous I guess but that's often not the case…if you're communicating off market, it depends on the seller's position since motivations may lie somewhere different. If it's a distressed home and the sellers are motivated because the stress of delinquent taxes and utility bills, they may want a more personal touch rather than something that sounds like a big corporation (empathy, etc). At the end of the day though, it may not matter. We are talking about finite details that more than likely just have some correlation and no direct causation.

Hope that helps! Best of luck! I’m a Fox Alum 2016, I was just at Chapters meeting with a lender on Tuesday 👍 let me know if you ever want to meet up and chat real estate.

[John Laney]

Wise advice @Lawrence Potts, @Eliott Elias and @Theresa Harris. Thanks much!

[V.G Jason]

They do not care, until negotiations get deep. In these days, negotiations don't get deep. 

[Kelly Asmus]

Unless it's a deep, deep fixer and the seller and seller's agent want assurances the buyer can close and get the project done - if not that, then no one cares. Best price/terms wins the day. I've had some projects where we were selling an extra lot and the seller lived next door - then they vetted the buyer to make sure they could perform. So a few situations where it might matter, but 99% of the time, it doesn't matter. The strength of your offer and your financial ability to close the deal is what matters.

[Scott E.]

This is a great question. And no disrespect to anybody who replied above, but I disagree with everybody who has responded on this thread.

Sellers very often care about who they are selling their house to, and what the buyer plans to do with it.

I've done at least a half a dozen deals where I've used hand written letters to tell my story, and I've been told that these letters have single handedly tipped the scales in my favor (There are some rules around writing the seller a letter. Consult with your agent on this). A prime and current example of where this worked for me:

I'm flipping a house in Phoenix right now. I got the deal for $1,550,000. This home was formally owned by a couple who lived in the house for 40 years before both passed away. The estate (adult kids) were handling the sale. I learned after negotiations that there were offers on the table for literally $100,000 over my offer (yes, ONE HUNDRED THOUSAND). But those developers would likely be tearing the house down. My plan was to remodel the existing home. This meant a lot to the kids, who had decades of memories in the house. So they sold me the home at a huge discount, knowing I didn't plan to demolish. Of course my offer had other favorable aspects to it (cash, relatively quick close). But my plans with the property played a huge part in their decision.

I have several other similar stories. These letters have worked particularly well for me when buying a primary residence. Some sellers love to hear that the home is going to "a first time buyer" or "a newly married couple" or "a young family"

My only public service announcement: Just be honest. I'm a big believer in karma. Don't write the offer as "John Laney" acting like you're not a flipper when you're really a flipper. That would just be deceptive and not cool.

[Denise Olar]

@Scott E. I love to hear your story, because that is what my hope would be, that some people actually care about what is going to happen to their childhood home.  And thank you for not tearing it down and building some giant square box with a flat roof taking up the entire perimeter of the property.  But…. I actually had an experience in my own neighborhood, where I knew the elderly gentleman that passed away, met with the son (who seemed very lovely and reminisced about his childhood).  I was very honest about my interest in preserving the home’s history and making sure it still blended in the neighborhood.  But at the end of the day, the person (well named flipper) with the highest bid wins the day.  I am still glad to hear that is not always the case though. But, I totally agree that you have to be honest, no matter what. 

[Colleen F.]

@Scott E. you can't do these letters everywhere anymore. My Sister in law just bought her fathers house (from the person he sold it to 10 years ago) and was told she could not include a letter in NY. I think the agent found a way to mention the relationship when presenting since she asked for a piece of furniture. Not sure if it got her an advantage but she got the house.