How to convince a homeowner

2 Replies

You have to be dealing with a motivated seller, not just any homeowner.  Let me give you a few examples.  I've had any number of sellers who could not sell their house to a retail buyer.  Why?  It need too much in repair.  I'm not talking just cosmetic here.  I'm talking a house with a bad roof, old wiring, galvanized plumbing.  In other words, the house needs to be gutted.  Or, another type of seller is one whose house has been damaged/stunk up by animals.  I can recall one house I bought that when I walked thru, I had to hold my breath, and just walk straight thru to the back yard!  The owner had a dozen cats.  Litter  boxes in virtually every corner of the house.  Trust me, no one wanted that house...in fact most people wouldn't walk thru it.  I bought another one from a very tired landlord, who had a tenant who had moved in half a dozen dogs, and then left them in the house all day when he went to work.  I could smell the house from the sidewalk in front of it.  He just wanted out.  My guy who hauled trash from my houses called me one day.  He had been hired to haul out stuff from a duplex.  While he was in the process, the owner asked him if he knew anyone who would want to buy.  It was in rough shape, again the cat odor, needd a new roof and ceiling repair, front porch falling off, etc etc. 

When you finally find a motivated seller, you'll know it.  You really won't have to do very much convincing.  They want out!  I could go on and on about the factors that make a seller motivated.  It's not a little paint and new carpet in a great suburb.  You'll never buy that house for 70%.

One other factor.  Back when I got started, we didn't know it was supposed to be 70%.  We actually figured out what our costs were going to be, and added in a profit in order to determine what our offer would be.  Somewhere along the line someone must have decided to estimate that percentage, and since that was easier, everyone started doing that.  But it's kinda clear that the price of the house has alot to do with that percentage discount.  I'd advise everyone to learn how to determine their costs so that they can then determine what their offer should be.

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