First yellow letter response.
I got a call today only 1 week after my first 9 letters went out. Here's what happened. I received a call from a man who had a lot next to Prairie View A&M university in Texas. This area has many lots available from $2,220.00 to $11,000.00 for a .25 acre piece of land. I spoke with the gentlemen and he asked me how much I was offering. I immediately asked him to tell me about the property. He then told me he wanted fair market value and that there were lots going for $100,000.00 and that he was offered $30,000.00 for the property a few years ago. I asked why he didn't take it. He said it wasn't enough. I then told him that I was prepared to offer him $6000.00 in cash and that there were others in his area for less. We didn't strike a deal however I learned something. Most of the people who have these properties think they have gold mines and it's hard to point out that they might not have what they think they have. Needless to say I'm moving on however I'll still send him another letter in a month only this time with some comps to support my offer.
Comments (3)
I wonder if it's a good idea to send the owner a mailer or email breaking down all the numbers and comps, etc. so they can SEE why what they're asking is way too much instead of me trying to convince them.
Anyone ever tried this?
Account Closed, about 10 years ago
Great post, Anthony. You're absolutely right that people think they're sitting on gold mines. Often, they heard from a friend of a friend that their friend's neighbor's cousin from across the state sold a property for that much and they "reverse engineer" that number onto their own house... and then add a premium based on the love they have for their own home!!! :)
Comps are valuable to educate buyers on the range of what others are selling houses for in their area, as the above commenter mentioned. More education might be valuable too: Most owners don't realize what costs they incur by waiting (including carrying costs, stress, potential vandalism on uninhabited properties).
You did the right thing to stick to YOUR numbers.
Kent Clothier, about 10 years ago
Great idea to add comps for supporting information to educate the owner a bit. I'm researching now what to say in a few letters that I want to personally write out on blank greeting-type cards. It's also encouraging to hear that your first wave consisted of only 9 letters.
Would love to continue to hear how your progress is going.
Christian (Whitehead) Scott, about 10 years ago