Nearing the end of Part I, I described how the conversation should NOT go when presenting an owner financing offer to your sellers. Allow me to explain
Scenario: House is worth $200K. You have a buyer wanting do put $20K down, and the owner to carry the balance of $180K at 6% interest, on a 30 year amortization with a 5 year balloon payment.
Your conversation could go like this (how not to):
Mr/Mrs. Client, we have this ridiculous offer from a buyer, but since I'm required to run all written offers past you, I'm being forced to do so. Do you really want me to review it with you, or do you just want to reject it right now?
Here's how your conversation could go (hot to present it):
Mr./Mrs Client, I have an offer for you. It's a possibility that something along these lines may indeed work for you. I've had enough people accept various creative offers that I learned a long time ago to allow homeowners to make some decisions for themselves, versus taking that ability away from them. Would you be interested in hearing how it may help you?
Can you see the differences and understand that oftentimes the offers are only as good as the "manner" in which they are presented.
Topic#2 - Making a decision for a buyer regarding an offer
I understand that it is your job to serve the best interest of your client. I also understand that oftentimes, what you may think would work for a particular client, in reality is something different than may work for them.
If a buyer makes a so-called "low ball" offer, you should not be offended, nor should the sellers. Celebrate the fact somebody liked the home enough to offer on the property! I have 5 properties (that I OWN)for sale at this second...would I be offended if somebody offered 50% of the value? No. I work every interested buyer to see if we can come to an agreement that works for them and works for myself.
I think if we all focused on how we can be deal-makers, versus "knowing" what everybody wants, we could all close a few more deals than we normally do.
That's all for Part II. Will work on having Part III up for next week.
Also, if you are having troubles with some of the concepts of the thought process, please see my other blog post titled "You can be right, or you can be rich". Many of the same thoughts can be echoed in the relationship involving the parties of a real estate transaction.
Real Estate Rocks!
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