Would it be a good idea to leave sales price OFF of marketing material?

Question

I am in the process of selling a few deals and wanted to try something new for me. So I thought about when creating the marketing material whether it be postcards, fliers or internet posting to give details about the property and pics but no price only stating that seller is willing to consider any and all offers.

My reasoning behind this is that we know what we would LIKE to sell the property for but we also have a price that we will SETTLE for. I also reason that some people who are interested might not call because the price listed might be more than they are willing to pay but wont try to negotiate a lesser price.

What does everyone think is this a good strategy?

Ty Hines · Answer

J,
I know about GAREIA what other investment groups are you a member of? Im looking for some new ones to join. Any good meetup groups?

When it comes to negotiation tactics you've got me when it comes to professional experience. Im going to give this new tactic a try and see what happens. I will keep you posted.

J Scott · Answer

Nope.  As a buyer, I will never, ever throw out a number before the seller...

Not only is it a horrible negotiation tactic if I did, but it's also not my responsibility.  As the buyer, I shouldn't have to negotiate if I don't want to.

If you say the house is listed at $60K, I should be able to say, "Okay, here's $60K...let's do it."  That's a buyer's prerogative, and to take away the buyer's option to close a deal without negotiating is bad form for a seller.

Any good negotiator will ask you, "How much do you want?" before they make an offer.  You can refuse to name a price, but ultimately, if they don't want to make an offer until you do, the onus is on you as the seller to name a price that will allow the deal to get done without any negotiation.

So, if I asked how much you wanted, and you flat-out refused to give me a number, I would likely offer you $1, and then see what your counter-offer was.

This is just my opinion (and it's just an opinion), but I used to negotiate professionally, so I have some experience...

J Scott · Answer

Are you wholesaling or retailing these homes?

If retailing, you definitely want to include a price, as retail buyers are generally financed to a certain limit, and make their home visit decisions based on the price, not the "deal"...

If wholesaling, here are a couple questions to ask yourself:

- How will you feel about getting LOTS of calls, most of which are a waste of time because they are offering way too low;

- Are you a great negotiator?  While you are in a better negotiating position when the other party mentions the offer price first, it's easy to blow this advantage when the offer is well-below what you would consider;

- Do you expect lots of offers?  Or just a few?  The more offers you expect, the more you can play each offer off the others without stating a price.  The fewer offers you get, the less effective this is;

- What is your answer to, "How much are you selling it for?"  If your answer is, "Make me an offer," then what is your answer to, "I offer $1."  That will account for 50% of your discussions, so be prepared with a negotiating strategy for that.

Ty Hines · Answer

J,
 The purpose of this strategy is to get as many calls as possible whether they be from investors or retail buyers. From the retail standpoint if a buyer is pre-qualified at $85k but I list the house at $99k I am missing a potential deal because I AM willing to sell at $85k. The same goes for an investor also who wont look at a house unless it is in a certain price range.This way I at least get to talk to them and if the house is out of their price range I can add them to my potential client list for future properties. I know what I WANT but I also know what I WILL take.

Others may ask why sell and take a hit of $15k when you can hold out for the right buyer? In Georgia as everywhere else there is an abundance of deals so I would rather sell "now" and move on to another deal. "A bird in hand is better than two in the bush".

The way I see it serious buyers have done their homework about the house and the area and will make serious offers. Don't YOU?

And finally for the people who want to be jerks and try to offer me $1 my answer will be "CLICK"!

Ty Hines · Answer

J,
What are some of your best marketing techniques when it comes to finding buyers for your houses besides MLS?