any tips or tricks on how to negotiate with a fsbo? Out of town owner will be showing me the property. Any advice would be appreciated
Keep asking question after question about why they are wanting to sell the house. You will have to dig until you truly find the motive. Once you find the motive dig into that and explain to the seller how you can make this problem go away.
Besides that, if they are just selling the house to sell the house and want full retail and are sticking by it then the only real option to make money on it is owner financing or a lease option assignment.
In my humble opinion.
I agree with @Micah Copeland . Build rapport and be friendly. A seller won't sell to someone they do not like. Find their motivation and leverage it in negotiations. Be a problem solver.
Do you have paperwork ready to go in case the owner is serious and you want to lock it in? Do you have comparable sales in the area to support any offer you make in case the owner doesn't really know what it's worth? I'd also bring the business card of your closing attorney/title company so you can let them know you'll deposit the EMD there asap if you sign a purchase offer so he can feel comfortable that you are serious and the process will start quickly. There are many reasons it may not work out, but make sure you are prepared if it does.
Hi @DJ Cummins , I'd like to add to the great comments from @Micah Copeland and @Griffin Fehrs . I've been in sales for 9 years, and they are spot on. When you're talking wtih sellers over the phone, focus on a few things:
1) Build rapport. Just be a genuinely nice guy and get to know the seller. Don't over do it, but you want to build a good rapport and trust. People do business with people they like.
2) Ask open-ended questions (those that can't be answered with a yes or no) designed to find out why the seller needs to sell. Questions like "what would it mean to you to sell this home?", or "why hasn't the house sold yet?", or "when would you like to get this house sold?", or "what are your plans once the house is sold?". Note these are all open-ended questions and they can help you find out the motivation behind the sale.
3) Once you find out the true motivation for selling, present your offer not just as the dollar amount you're going to pay for the house, but as a solution that helps them achieve their true goals you uncovered with your open-ended questions. In other words, don't make your offer just about "Mr. Seller, I'm going to give you x dollars for your house", make it about "Mr. Seller, I'm going give you x dollars for your house and take away the headache of a home that is falling apart around you. No longer will you need to stress out about where you're going to get the money to fix the AC unit that no longer works, or the roof that's leaking." See the difference?
Once you've uncovered the true need, paint the picture of how life will be better once the house is sold. That way you make the offer less about price and more about benefit and value to the seller.
I know the owners mother is now in a nursing home and that is taking up a lot of his time. I really like the property from my drive-by. What would you suggest I bring as far as an making an offer. Owner lives 2 hours away so if I like it I would like to be able to lock the property up that day. Ive never done a walk thru without my agent or communicated directly with the bwr
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