How Prices Can Drop When You Offer Cash!
My friend from NJ is coming down here to FL to do a few deals, possibly with me if I can find them...He gave me a Ron LeGrand book lastyear and said 'Remember this moment, for at this moment your future wil begin'. He is a really good guy.
Anyways...I was calling FSBO in the local paper and saw a home listed for 392,000. I called up and asked how much she wanted, she said 390,000. I say is that the lowest you can go? She offers 385 and says the house is appraised at 390. I say I am offering all cash, there is no approval time blah blah whats your rock bottom price! She says 375, and I say "Whats that, 355??" She says "no, 365!" haha....
I know she would have gone lower....still too high tho for me, I was looking for her to drop to around 315 for it to be worthwhile.
Anyways its funny how somebody can drop 30k in price in a matter of 20 seconds when you offer all cash.[ Edited by riot8ap on Date 03/01/2004 ]
Cash is always King.........
Even though these people drop in price, it would be wise to do some due diligence first and see what the market is like where they live. I still have trouble making offers to houses I have never seen before but that's just me. A motivated seller is a motivated seller. If they are motivated, they will drop in price over the phone and in person. If they aren't motivated, it's like talking to a brick wall.
I didn't make any offers. at all, she was just spouting numbers.
I have a similar situation, I have a potential deal in Coral Gables, FL appraised for $390,000. She is willing to sell for $338,000. When my investor buddy comes this Thursday we'll see about talking her down even further, I can't wait. He's been doing this for years and I just want to see what kind of tactics he uses.
Hey riot8ap,
Thanks!
I hope you'll let us know specifics about your friend's negotiating techniques after next wknd! It all helps.
Good luck!!
Dersu
Sellers can also be willing to drop their price significantly on land if the purchaser buys without any contingencies except feasibility period. Drop price by 30%.