I started my yellow letter campaign two days ago and I received a call back this afternoon. The seller left me a voicemail saying he wouldn't want anything less than 400K for his property, so basically retail price. I want to call him back but I'm kind of lost at what to say. He said not to call back to waste his time if I'm not serious but I feel like I should at least tell him to use me as a last resort. I want to be respectful of his wishes but at the same time I want him to know that I'm interested in the property....just at a discount. What should I do?
It sounds to me as if he's not motivated, and while you can certainly call him, don't expect anything to come of it. If you do call him, try not to waste too much time and be respectful -- he's made it clear what his position is.
For what it's worth, about 80% of the calls you get from non-distressed targets will be people who are not motivated and aren't interested in selling below market.
True. I want to respect his wishes and not push my agenda onto him, though I think in my next round of mailings, I'll describe a bit more of what I do and why I buy at a discount. If he ever does become motivated, at least he could refer to me.
I agree J Scott, it sounds like he has his mind made up and he's not motivated. I would not call him back. I would probably wait a few months and then send another letter if the property hadn't sold. Maybe by that time he will be motivated.
Move on. You'll get plenty of calls like this when you crank op your marketing.
There is one word that comes to mind when you come across a seller like this..."NEXT!"
Move on. There will be many more "next" moments than deals...its a numbers game.
Indeed, thanks for the reality check guys. I'm trying to take the emotion out of this game and keep moving a long until I hit that motivated seller. I'll just continue with my marketing
I agree he's not motivated. But I call back every single person that rings my bell ;). Why? Because opportunity! If they don't want to sell to me (I'm not a realtor) I recommend them to the realtor on my team! My realtor sells the house and I get a handshake ;).
Now everybody is happy!
If he wants full retail for his property, there still may be light. Does he have the property listed on the MLS currently? If so, how long has it been listed? When/if you call him back, ask him why he wants to sell. Perhaps, he's motivated to sell, however he still owes close to retail price. If this is the case, there could be an opportunity to arrange a lease/option.
Justin has a point. I just got a call from a seller tonight that doesn't need to sell because she has a good tenant in the property. However she has been thinking about selling. After talking more with her she said that the tenant has asked to buy her house so I suggested a lease option. Since she lives out of state I told her I could put everything together for her and the tenant and would only charge her a months rent. That's much cheaper than a 6% commission if she was to sell on the mls.
I agree that it's unlikely this will turn into a deal but you should call him back to get some more info.
I call everyone back that calls me. I dont spend more than 2 min on the phone and simply explain what I do and ask them if it is OK to keep mailing them letters. If they say no I take them off the list for several months then send again. I tell them their name may pop back up on my list. If they dont mind I keep mailing to them. However, I can see how people with a high volume of calls may not want to do this.
Why not talk to the seller in a concerned voice about how selling through the MLS yields about 90% of the purchase price after realtor fees, concessions, and transaction costs? And then explain how you can certainly offer "full retail" (90%) if he can wait for some of it...
I ended up calling him back and he said that he isn't interested in selling any lower right now but he agreed that I could keep mailing him unless he changes his mind. In my next mailing, I'll explain the benefits of working with me instead of selling at retail. Thanks everyone for your input.
How about I'll give you price if you give terms. If the house is not a wreck, just an idea.
you can always offer a 3 option deal
01 all cash 30-35% below APR minus repars
02 6-7% down /15 year note /payments principal only at 1/2 market rent/Balance due
03 6-7% down/12 year note 4-5% interest only/Balance due
Creates 3 negotiation points
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