Transcription
They said final deal. Should we come back? Final deal means nothing. It ultimately comes down to, hey, are you guys going to make the decision to stay on the market, increase DOM, or are you ready to move forward? The ball's in your court. Presenting this new offer is you giving that listing agent the best gift in the world. Final deal means I'm open to more negotiation. Any objection you face or anything that you're pitching today that we can be helpful with?
I have one where this this property has been on the market for 27 days. They're listed at 425. My clients saw the property. They weren't my clients beforehand. Another agent on the team kind of passed them over to me. They saw the property themselves. I haven't seen the property. They told me, "Well, it needs a lot of work." The gentleman's an electrician, so he said, "It needs a lot of work. The the pool's in shambles. It's an above ground pool. Um, but it's set into a deck." And so they said, "We feel comfortable offering 390." I said, "Uh, it's been on the market for 24 days. 390 is not super unreasonable. Let's let's offer the 390." We offer the 390. They came back and said, "Oh, well, we'll do 420." Came five five grand off in price and said, "That's final and it's with um inspection forformational purposes only. We're going as at that point and don't bring anything else." My clients still want the property and it's sitting on the market right now. And we're talking, we're like, let's just throw 405 out there. Screw the fact that they say, "Oh, that's final. 420 is final." At the end of the day, I mean, you're being kind of unreasonable. We're coming five grand off price. I mean, we were being kind of unreasonable, too, coming 35 grand below.
But >> hold on for a second, Nathan. Anytime we say some human is being unreasonable about something, that's just an emotional response, right? And so, we don't want to get caught up in client emotional responses. This person X is being unreasonable. We want to be able to absorb emotions. We are a sponge. Sales professionals in real estate, you're not allowed to be emotional. Check your emotions at the door. Be a sponge for emotions. This is somebody's third most important moment of their life. Death, divorce, buying real estate. These are the big moments, the most stressful moments. They're going to be emotional. If we align ourselves with emotions next to them, recipe for disaster. Not saying that you were emotional. I just want to clarify on our language how important it is to separate what could be a driver for more emotions versus where we're at. So where we're at is we came in, you said it was listed at what? 420,000.
>> 425.
>> 425 and we came in at 390,000. 390 35
>> 390 390 divided by Right. So we came in Yeah, we came in within 10% of ask. We came in 9%. So on the market 30 days within 10% of asking price. Is that unreasonable? I don't think so. Right. We're within 10% of the asking price. That's where we started. We're at about 9% of asking price. 30 days on the market. Now, if we were to wait another 30 days, it it might be 11%, 12% where we'd we'd come in. Asking the agent, hey, what do you prefer us to do? Do you prefer us to close the gap now? Maybe we can get this client close to 7 8% of your asking price, or do you want us to wait the 30 days and move the other direction closer to 15%. Because the gap gets wider the longer they're on the market, not tighter. Okay? So that's one approach. The other approach is like talking to your buyers. Hey, you still want the property. The risk of moving the property from 30 days on the market to 45 days on the market is there's somebody else over the next 2 weeks that shows interest, makes a 5% to list price offer, they start negotiating with them, they don't come back and give us a chance, and the property gets taken off the market by that buyer. That's the risk. Now, the risk is reduced in the sense that the property has been on the market 30 days. If the property's been on the market three days, the risk of that going on moves up. So, we have some risk there, not the amount of risk that we have if it was a newer listing. Strategy number two is that we do come up. They did come down some, right? They came down 5,000. They presented terms that, hey, inspections for information only. And then they tried to really I'm not gonna use the word strong arm, but they tried to present a strong counter offer by saying final deal. Final deal. And so this is where I want to go back to kind of the language pattern that you were using. You know, they said final deal. Should we come back? Final deal means nothing. Final deal means I'm open to more negotiation. Being sold asis means nothing. Uh we want inspection for information only. Even if I put that in the contract, it means nothing because I might change my mind after the inspection. Hey, I know we agreed to inspection for information only. The information in this report is telling me that I should change my mind and renegotiate you. Well, that's not fair. Well, life isn't fair. Okay. So, I've now changed my mind. I'm renegotiating. And the seller has to make the decision. Do I have leverage other buyers? Do I have the stomach, the appetite to go back onto the market and see if I can get another buyer if I don't have one? Or do I want to get renegotiated in this deal? And if I don't have leverage, then my appetite to get renegotiated goes up. If I have leverage, it goes down. So what regardless of what they said, I would paint the picture to the buyer. Hey, they said this, they said that. Means nothing. We're in a negotiation. We can come back and present our offer. Okay? Present our counter or little risk involved. We wait and see where they, you know, how long they sit on the market and how much leverage that we have, right? Um, where would your buyer go to in this in this sense? You're at 390, they're at 420.
>> So, they wanted to come up to 405.
>> Cool. So, think about this. 405 versus where they're at. 420, that's 96 1.5% of the 420. The 405,000. We're 3 1.5% away. We're 96 and a half percent there. Been on the market 30 days. This is a very good offer. Okay? There's nothing wrong with making a great offer. The the listing agent should want great offers. If they had other people interested in the property, they'd be able to leverage a near, you know, 96 and a half percent offer to go get other offers. But they don't. Like, you presenting this new offer is you giving that listing agent the best gift in the world. You have an offer that you can go leverage. If you have other people that are interested, this gives you the advantage to get them involved in the deal. If you simply come back and say, "We want the 420." And this doesn't go under contract in 2 3 weeks when we come back, we're just going to know that we have all the leverage because you don't have any anybody else that's interested. And listen, Mr. Selling agent, Mrs. Selling agent, you're doing a great job representing your clients. You've got to play your side of the game. Ultimately, we both want to make sure that our clients get a deal and get a good deal for them. We're working for the deal here, but there is a cap to where my buyers are going to go and we're kind of there. There might be a few terms, conditions we can tweak, might be able to look at this, but we're kind of there. We're 97% to where you guys want to be. It ultimately comes down to, hey, are you guys going to make the decision to stay on the market, increase DOM, or are you ready to move forward? The ball's in your court. We're not going to put a crazy deadline on this. uh the property's been on the market. So, you know, we feel like we're not risking much by letting you guys take a day or two if you need it to decide and we're looking forward to hearing back from you. Right? That's how I would present it. Like almost like, hey, we're confident. We made a great offer. There's going to be other opportunities, that's probably unlikely. When we originally were talking about the 390, me and the listing agent or when I mentioned that I was going to pres present the 390, she said that they had something else in, she didn't say exactly that that it was FHA, but she kind of implicated that it was FHA. She asked us, "Oh, are you FHA and are you asking for closing cost credit?" Whatever it is, she did mention that they had another offer on the table and it was higher than where we were at. Even though it was higher than where we're at, whatever it was, they didn't go with that because they're still in the market.
>> They didn't go with that. You guys are going to come up with a now with a 405. And it really comes down to you presenting the risk of waiting. Maybe somebody else comes along or you know what's riskier, waiting, they go under contract or making what we would present as our kind of best offer right now and seeing what happens. If the listing agent's asking if you're FHA, if you have closing costs and all that, it's like that automatically tells me that the offer they have has all that. It's either VA and it has closing cost or it's FHA and has all the closing costs, too. Cuz why would an agent ask though?
>> That that was my thought process, too. And I said, "No, we're not asking for any closing costs. We're conventional and it's a it's a smooth deal." And you know, you don't know if the offer is truly better because she might be saying, "Hey, the offer I have the starting point of that offer is better, but after whatever they're asking back, it might be when you're having a phone conversation with a listing agent." I'm not saying listing agents should be or are out there just lying. But you got to listen closely to kind of what people say and continue to obviously know the inventory, know the market, put yourself in position to respond accordingly, unemotionally. I would say for sure, you know, if I had one showing over the weekend, man, we were really pleased with the turnout we had over the weekend. If I'm talking to a buyer agent, we were really pleased with the turnout we had over the weekend. I was just talking to a buyer agent yesterday after she left the property. I'm just going to repeat the story about this one buyer agent three different ways to make it sound like there was buyers in and out, right? Because you want to present a scenario that shows that the propertyy's highly desirable. So, when are you having this conversation, Nathan, with them?
>> With my clients or with the listing agent?
>> With the clients to get the that offer written at 405.
>> It's already all written up.
>> It's all written up. You're going to present it over and u you know, I would have a conversation with the like, hey, here's how it came. We're about 3% away from, you know, where they want to be. Ultimately, listen, you're doing a great job representing your seller. Anytime I'm going to give a listing agent any insight of like, hey, maybe you should be leaning this way, it's like, hey, you're doing a great job. We want to get a great deal for everybody. I know you got your game to play. Ultimately, you know this. You know this better than anybody. You guys got to decide what's riskier. Is it staying on the market another 30 days to close the 3% or is it taking this deal? These buyers are ready to close, confident in in our ability to close. You've articulated there's nothing we should worry about in inspection. So, I don't see anything any hurdles that we need to jump through here. we're gonna close and you just got to make the decision on, hey, what's riskier? Waiting and potentially being on the market 45, 60 days to close that gap or going with the viable buyer right here in front of you. I'd have that conversation. I'd articulate that we are um committed to the closing, highly communicative. Hey, don't want to bother you. Want you to know you're going to be able to get a hold of me at any point in the deal. I'm going to be highly responsive. Nobody wants the the agent on the other side that's freezing them out, not giving them any communication.