You know, the hunt is usually more exciting than the kill. Well, what do you mean Rich?
There is another blog that I have been reading and responding to about "low ball offers". I just love them. Love making them on the buyer side and love negotiating them on the seller side.
I don't want to make this about auctions, but the offer, acceptance process is just a blast. As the auctioneer, I ask for 200k and then I get it. Then I ask for $225, get it and tell the last guy "You're Out, Sir". What a blast. The sellers love it and the buyers have fun too.
Anyway, there is a saying that the first one to blink looses. I remember going to a broker interview one day and being the agent looking for a home.
The broker asked "What kind of a split are you looking for?"
I reply "100% with no fees" I'm never going to get it, but who cares. This is the game.
"No, really Rich?"
"Why are you laughing, I am not kidding?" says I.
"What do you think is fair?"
"100% and no fees" I say
"You can't get that"
"Well what can I get?"
BLINK !
The NO counter is a great tool. It makes the buyer bid against himself. It makes them try to figure out what the seller wants in the contract. It usually gets the buyer to increase the offer price, the deposit and shorten the closing date.
"But Rich, there needs to be a sellers market for that to work !" some might say.
Ok, just use "let it expire" counter then. It makes the agents jump through their skin. Trust me. Happened today.
Do you have questions about distressed assets, receivership or bankruptcy sales, auctions? Email me at rfk@gryphonusa.com and I'll try to answer it in an upcoming post.
Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com). The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Gryphon Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.
United Country Gryphon Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17
When drafting a counter offer, my advice to my client is to get the terms and any other items (other than price) resolved in the first counter offer.
Once both parties have come to terms on "terms", then focus on price negotiation.
As a strategy it has worked well for my clients. Anyone else use this approach?