[Nathan Kenny]

Nathan Kenny

Jackie

I am posting my question to the forum so that all could benefit from it…. you had said that when you are negotiating a deal with a seller to do a highest bidder sale, you use the cost of marketing the event as a negotiating tool, can you please explain in detail how this is done?

[Anonymous]

Anonymous

when the seller is stuck on an option price that you’d like to get down more, then tell them the only way you’ll do a HBS is if they pay for all the marketing expenses.

Then ( you don’t tell them this part) — worst case you are out some time but no money if the house does not sell

[Anonymous]

Anonymous

You always try to get the price lower but worst case, you put the risk factor on them by getting them to pay for all marketing.
When faced with writing a check for $1500 for marketing, they will often lower the price $5000 – $10,000 to avoid writing the check

either way, you win!

[Nathan Kenny]

Nathan Kenny

thanks Jackie

so for instance we want to put an option on a home that is worth 100k, for 65k but seller will not entertain any offers less than 75k. you say that you will do that provided that the seller pay for the marketing of the HBS.

I you know that the house is worth 100k and you think you can sell the house for 85k for a quick sale, and you want to make 10k, for purely negotiation strategy, could you not offer the seller initially 70k but when the seller counters, throw in the concession that you will pay his asking price provided he pays for the marketing? the seller gets his price, you are still buying below market and seller is paying for market, so you have no real risk if the home does not sell….