If you weren’t on last week’s call, here’s the summary so you can get a glimpse of what went on.  To join the call, go to www.sellercalls.com and get in on the action! Can’t wait to help YOU with your deals!!

April 14th, 2010

The Setup

Student: Sue

Agent: Roger

Location: Ontario, near the U.S.-Canada border

So here’s the scenario: Roger’s client, who owns one of the largest helicopter businesses in the world and several restaurants, wants to sell fast. But is he motivated enough?

The property is listed at $7.9 million and sits on 28 acres with some waterfront. Roger says it’s absolutely magnificent. Built by Italian builders. In-ground heated pool. New horse-rail fence along property. Beautiful entryway. Bottom line? He wants $6.8 million. Roger says he doesn’t need to sell it.

I tell Roger what I tell all sellers and agents. When we buy, we have to buy at the right number and be conscious of our costs to resell the property. No doubt the location —between Toronto and Montreal is a good one, and, yep, I tell him, there is a market for the property. But the numbers just have to make sense. We don’t make a lot on every property, but we’ve got to make a little on each.

So on this one, I’m not sure if there’s enough upside for us. We’re not vulture buyers, but we’ve got to pay closing costs twice and we spend a lot on marketing. So Roger tells us about another property listed for $1.3 million that he’d be willing to sell for $950,000. Sounds goods. He also has one marked down for $600K that sounds intriguing.

I tell him to circle back with Sue on the details.

That, kids, is how you talk to agents. We’re in the helping people business, but we have to find numbers that work for everyone. Otherwise — as I tell Roger — we’ll end up upside down. We don’t want that. So we have to be patient.

This isn’t a sprint, it’s a marathon, and we don’t want to waste time chasing sellers who aren’t motivated.

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The Setup

Student: Caroline

Seller: Deborah (pronounced Deb-BOOR-ah)

Location: Boulder, Colorado

The scenario: Caroline says Deborah, who was originally asking $1.6 million, has said she’ll take $975,000 for the unique, curvy property. Not a straight wall in the joint. Feng shui. Comps run between $800,000 and $2.5 million. Unfortunately, as we get into the call, it becomes apparent she wants a little more than $975,000.

When we get on the phone with Deborah, I tell her that we’re ultimately looking for a good deal for both of us. I ask what her situation is and her time frame so we can structure a deal that works. This is important, gang, because until we know what motivates sellers, we can’t talk solutions and we can’t get to a bottom line on price. Caroline loves the house, but has to sell because she’s a mortgage broker, her husband is a remodeling contractor, and with the current market, “We’re up against it,” she tells me.

She listed the house last fall for $1.6 and had showings, but that’s about it. No offers. Bathrooms need updating, but otherwise the house is good to go, she says. She’s planning to list again, this time for $1.2. She’d sell to us for $1.1.

For around $1.2, you could get a cabana downtown or something a little roomier a little further out, she says. Her time frame for selling is ASAP. But I tell her if I bought for $1.1, just with closing costs twice, we’d be upside down. I add that if that’s her bottom line, I totally respect that. You’ll hear me say that often. Why? Because I want people to get the price they want. We’re in the helping people business. Of course, that doesn’t mean we’re a non-profit. So if people want more than we can give, we just wish them the best. If they’re willing to come back to the table with a number that works better for us, even better.

I explain to Caroline the movie-style launch and aggressive marketing. She fishes for our bottom line. Per the usual, we don’t give it. But I tell her to consider a number she’d be happy with, that she could sleep on and get back to us.

That’s how it’s done. Patience. Let the seller come back to us. Right now she doesn’t seem that motivated, but that doesn’t mean she isn’t. We’ll find out soon enough.

Was on the same flight last week and there wasn’t a soul in sight. Funny how that works out.

Despite the hullaballoo, Do we stop traveling because of long-ass-kid-screaming lines? Nope.

Do we stop traveling if the food has a slightly better flavor than a Michelin tire after running over a skunk? No.

Do we even stop traveling because you MUST remove most of your clothes, shoes, have “randoms” sift through your tidy whiteys and wonder suspiciously why you carry on 2 laptops?

You see as a frequent traveler, I do what needs to be done and endure the discomforts regardless of what happens along the way as it’s simply part of the journey.

Yeah, things go wrong. I deal with it.

Isn’t that JUST like success? Things go wrong, you work around the kinks and the consistent bursts of discomfort and humiliation because we KNOW it’s worth it.

Do you?

Do you do what it takes to get to where you not only WANT to go, but NEED to go.

Stop sweating the people who are smelling your tidy whiteys and get to where you’re destined to go…

Once you get here, it takes your breath away.

See you soon I hope.

Marco Kozlowski