Motivated Seller, Or Not?

Comments(8)

• 
  worknomore9th December, 2005

  Folks, any suggestions?
  
  Thanks.

• 
  JohnLocke9th December, 2005

  finniganps,
  
  I could go on with many reasons sellers will take 80% of FMV in any market, I take houses Subject to all the time from folks, who are divorcing, just want out, help save their credit, transferred and the list is endless.
  
  Listing is not the answer for someone who needs out now. They know that the agent puts it in the MLS hopes some other agent can sell it, then the listing agent is happy with splitting the commission and working for half pay. Not much motivation there.
  
  One method is just mail to expired listings now there are some happy folks with realtors.
  
  John $Cash$ Locke
  [addsig]

• 
  worknomore9th December, 2005

  JohnLoche,
  How do you get access to expired listings. Is there a paid option to any websites or do you have to buddy up with a Realtor?

• 
  IBuyHousesInc10th December, 2005

  All of the sellers I have bought from have taken a lot less than 80% of value...
  
  If you do not see 52000.00 and 75% value dont buy it...
  
  And using a Realtor for a seller isnt always the right answer for them.
  
  The fear of the unknown is a very powerful tool if used correctly...
  
  Good Luck
  
  
  
  _________________
  Michael Quarles
  
  "Marketing is the key to Successful Investing"[ Edited by IBuyHousesInc on Date 12/10/2005 ]

• 
  jimandlacy10th December, 2005

  Just a quick question...
  
  You said - "I have made quite a few offers at 80% of appraised value and still no taker.... "
  
  Is this value an actual professional appraisal with comps or are you basing the 80% on a tax assesment figure which around here is usually less than 80% of market? 80% of fmv will usually get a few stirrings.
  
  Jim

• 
  worknomore10th December, 2005

  Thanks JohnLoche, I will see if there is a realtor who can assist with access to MLS.
  
  Jim, I am not doing a full blown appraisal. But I look up sales in the last 6 months from Realquest and drive around the neighborhood to make sure these truely are comparable "comps" based on the exterior looks of the house (building exterior, roof material, over all up keep etc..). Since most of the homes are in tract neighborhoods they are quite similar.
  
  So yes, the numbers are around 80% of FMV based on sales numbers.

• 
  worknomore10th December, 2005

  IBuyHousesInc,
  
  You mentioned something interesting : What do you mean by "Fear of the unknown"? And how do you use that during discussions?

• 
  IBuyHousesInc11th December, 2005

  An appointment to buy a houses is exactly opposite of an appointment to list a house..
  
  Everything Realtors tell people in a listing appointment is based on speculation and history. Sure a majority of the time it is very good advice however it is still an opinion at best, of what the market will do or wont do.
  
  They also build up the houses rather than destroy the house as they do not want to upset the seller therefore not be awarded the opportunity to get the listing.
  
  In our presentation we use the fear of the unknown to our advantage..
  
  A perfect example would be a simple statement like.
  
  “The difference between us and using a Realtor is that when we buy your house you wont have to worry about strangers, even neighbors, looking through your dresser draws.”
  
  Saying those things embeds fear and works well
  
  We also use an inspection checklist that has 3 categories; Ugly, Uglier and Ugliest and walk the house WITH the seller and mark off everything that has to be repaired.
  
  It is important to have the seller with you so they can see you check off all of the ugly stuff. Point out how bad it is… There will be dollar signs running through their heads and when you get to the point of negotiation their fear, of the unknown repair costs, will help them justify the selling price..
  
  Always remember that when you buy a house for 75% value that you must give the seller justification of the price so they can explain to their friends as to not feel like they are suckers.
  
  
  Good Luck
  
  
  _________________
  Michael Quarles
  
  "Marketing is the key to Successful Investing"
  
  [ Edited by IBuyHousesInc on Date 12/11/2005 ]