Lesson Learned

2 Replies

Hello All,

Figured I'd share about a recent deal that slipped away and the mistake I made that caused it.

In my area I work probates as part of my marketing and I had a great lead on a property with extremely strong comparables - i.e. - identical rehabbed house across the street sold via bid war in 6 days. Desirable area we'll say.

This particular seller was a rehabber herself but didn't have the heart to rehab the home she grew up in - understandable.

She was from another state, as well. She was traveling to the property for a few days to meet with multiple investors to take offers. I schedule a few meetings to build rapport -which I did. During the meeting I was presenting the offer she and her spouse had mentioned how they wished to sell to me and hoped my offer was close to a best one because they'd go with me. The power of influencing people. So, I offered $96k on a house that needed $35k with an ARV at $210k. They smiled and said they had gotten an offer for $96k that day and they'd agree to sell to me.

Next move - P&S signatures. Well, they innocently mentioned - our lawyer said not to sign anything until he looks at it. I assured them my legitimacy. Conversation continued and the lawyer came up again. I lost my persistence, and foolishly suggested I'd just bring their lawyer the paperwork in the am to review and ultimately get signed.

Mistake. 

Next morning, I get a call. "We got an offer for $104k and just can't pass up the extra $8k". Can you blame them. They "liked" me so much they literally didn't want me to counter as she being a rehabber had thought it was too high and didn't want me to lose out. She also thought the ARV was around 180 - she didn't know the market accurately.

Anyways, this deal was as good as done - except exactly that - it wasn't done. Close with signatures! 

Positive note - I developed a referral relationship to farm with the very probate attorney that represented the seller.

But, a learning experience.

Originally posted by @Sharon Vornholt :

Griffin -

If they weren't willing to sign the paperwork at that time, they were probably stalling; just using the attorney as an excuse.  You can't force them so don't be too hard on yourself. 

Sharon

 Agree!

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