Educating Sellers

[Chris T.]

Recently, when I've talked to sellers about buying their home I informed them of the variables I use to come up with an offer.

I tell them about the current market conditions in the area and how that relates to holding costs, what I would do to the house to rehab it and how much that would cost, how the house compares to other houses on the market, etc...

Then I make an offer.

If they decline the offer. Then I advise them how long it will likely take for them to retail the property and my opinion of how much they could get for it.

However, I'm wondering if this is a waste of time. Should I just give them my offer immediately and move on?

[Ricky Ostrom]

Up front I tell then that if they expect anything near a retail offer, then I can't HELP THEM.

I would not discuss in detail your expenses like holding cost, rehabbing, marketing, etc... Just mention that there are alot of expenses on your side that they don't see. Other money that you're having to put up front.

I would mention how you are able to SAVE THEM 6% realtor commissions, SAVE THEM from making repairs, SAVE THEM from waiting 180 days for a sale, SAVE THEM from 6 more months of mortgage payments, etc...

Find out what they are most concerned about. It's not always about the money.