startin my dials!

[snowbank]

I agree.  Going to look at houses before you find out anything about them and the seller is basically pointless.  That's like me driving across town to buy something from a store but I don't know if the store is open.  Time is money.

[jpstephens]

Well I do have a general knowledge of the homes in my areas worth, but Long Island varies in price VERY quickly, you acn have million dollar homes 3-4 blocks away from 200k dollar homes.

I guess the best bet is to pick a location within the island to focus on.

[propertymanager]

Snowbank,

Here are several properties for sale in the same hypothetical neighborhood:

1.  3br/2ba, 2000 sf, $120,000, seller moving - MUST sell!

2.  3br/2ba, 2000 sf, 3 months behind on payments, HELP!  $89,500

3.  3 br/2ba, 2000 sf, $99,500, will take offers.

4.  2 br/1ba, 998 sf, $39,500  FSBO

5.  1 br/1ba, 800 sf, $19,900 FIRM

Which one is a good deal?

Mike

[jpstephens]

You won't know until yuo call first and see if the seller is even motivated to sell. And if they are you can pull tricks on em , like ask if they cant sell the home within the next 2 weeks and could list for the same price would they use a real estate agent? if so then take off an extra 6% for commision, etc....

It all depends how bad the seller wants to sell.

At least from what I think I have learned.

[propertymanager]

JP,

OK, I'll play along.  You call all these people and the only one willing to come off their asking price significantly is #1.  You play your best trick, and she says that if you can close within two weeks, she'll sell you the house (that she was asking $120K) for $89,900 (which is 25% off her asking price).

Is this a good deal?

Mike  

[kdhastedt]

Actually, you don't know because you don't know what the approxiamte values for each type of home is in YOUR chosen area! Basically, you need to understand your market and you do that by getting out and doing your homework!

Keith

[propertymanager]

CMON  KEITH!

Give it all away!!!!  I was hoping that JP and snowball would figure it out for themselves!  (They probably still don't get it!)

Mike

[snowbank]

CMON  KEITH!

Give it all away!!!!  I was hoping that JP and snowball would figure it out for themselves!  (They probably still don't get it!)

Mike

What's up with the attitude?

Having different viewpoints on things is what helps others see things from another's perspective.

[jpstephens]

well I wouldnt discuss price on the phone at all. I wouldnt even mention it while she was showing me the home. I'd try to establish rapport with her and make her like me, then I would ask to sit down with her. Before going to see the home I would have done some homework to see what homes were going for in that area, etc. After we talked THEN i would say what I coul ddo for her depending if it was ag ood deal for me. I'd opt to try to do lease option...

I mean I think this is the right way to do it...

[kdhastedt]

OOOOOOOPS...sorry Mike.  I thought that was one of the "givens" of the equation based on an earlier response.

Keith

[propertymanager]

Keith,

It didn't matter.  He still didn't get it.

Mike

[jpstephens]

I'm confused can someone explain their reasoning?

I mean everyone says go out and do it, btu then when I dont have the right answer they make it seem as if I'm not ready for it....

I thought the dials would seperate the motivated sellers from the non motivated sellers before I waste my time seeing their home. Cause in my opinion why would I see their home if I cant get it for 70% of the as is value after repairs?

[NCInvestor]

I know less than probably....  well anybody here.  But if JP makes some calls and finds a highly motivated seller, can he then not compare the price of the house against prices in that area and determine if there is potential for a good deal?

[jpstephens]

Yea thats what my theory is. Or find the seller, find out prices of homes in that area prior to even going to see the home, etc.

That way at least I know im nto wasting my time, i'm dealing with someone who WANTS TO GET RID OF THEIR HOUSE!