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Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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I'm willing to bet that just about anyone who bought in 2006 would sell their place at a number higher than they paid for it, and laugh all the way to the bank about it.
Good luck (seriously) and go ahead and give them a call, what's the worst that could happen?
YIKES! Confront them? I know, just the way you said it but think about changing the away you think about what you want to do because communications will make or break this potential deal. Ok, my 2 cents on that.
Everything is for sale. People that would not think about selling can change their mind when presented with a right scenario. For all anyone knows, they might be thinking about selling right now so don't think for a minute that you aren't thinking what they are thinking.
Having a Realtor or REA contact them is probably the biggest mistake you could make. You found a house you like and having a REA contact them is like telling someone with a bullhorn to keep a secret.
You got it right, a personal letter but you aren't even close to the point of talking about price yet. First, you have yet to see the place right? For all you know, they have black mold crawling out of the toilets. Go slow.
Before you think about price, you need to see that house and that means breaking the ice. The idea here is to avoid getting the owners to see dollar signs but instead see the possibilities of what a sale means to them. When a REA contacts them, guess what? Commissions and sale price is what comes up. On the other hand, you're going to approach them with opportunities. But first you need to see that house. That means finding out everything you can about the owners before you contact them. It isn't hard but it takes some effort. Find out what clubs they belong to, if they have kids, the schools they attend, are they involved in lot of activities and so on. All this helps you determine how rooted they are to that house or location. By finding out about them you might also discover that they are within the 7 degrees of separation and you never knows who knows whom. The more you know the better.
A little research will also tell you the amount of the loan they took on the house, if there are any notices of default and so on. I know, this might all sound a little invasive but you are only using the information available to you.
Once you have the information, digest it. You are looking for things that might point to a motivation that gets them to sell that even they might not know about. For example. If their kids are involved in some activities, what could a location change do for that? Hurt or help? Always look to for opportunity. Maybe there are better facilities for those activities elsewhere. Are the owners politically active? They might be very involved in local politics and that could affect their desire to move. On the other hand, if they are not, then moving might not be such a big deal. Basically, I'm saying get to know then so that you have some idea just from outside, if a move is even possible or practical.
Then it is time for the introduction. The info you gathered might present a unique opportunity for you. You might share some interests that open a vector for you. You never know.
Failing anything like that, a personal letter is easy and if well constructed, can open the doors so to speak. In your letter, you want to make your intention clear but not harsh. Take that word "confrontation" and throw it away. Instead, think of the letter as an introduction of two people, one with something they have and the other with a desire to acquire it.
Start your letter out with a praise. Keep it short though, you want it be read genuine, not as a come on even though that is exactly what it is. Something like "Touring the area, we saw your very appealing home (do not use the word "house") and then describe some of it and why it was appealing. Don't overdo it because after all, you will eventually make an offer if things continue and you don't want to shoot down your own offer.
Continue with a statement asking if they've considered or are considering changing their location. it is of course a rhetorical question. You come to a direct but considerate question of "My _____ and I would appreciate the opportunity to discuss any possibilities wherein you might consider a discussion regarding the opportunities that would become available to both of us and we'd like to invite you to dinner (pick a nice place, keeping in mind whatever status you've been able to ascertain.)
What you've accomplished. You've broken the ice. You've stated your intentions. You've invited them to a dinner which costs them nothing and if they accept, you know more about them than they do about you. That puts you in a nice position to manage the dinner conversation hitting on opportunities that might appeal to them.
If they don't want to do the dinner thing, you might find they will host something on their own turf, if they are considering selling.
You can break up the intro letter and the letter to invite them out getting a read on the first before putting forth the second. The second can also be a phone call.
Your initial letter should include a nice picture of your and yours. Isn't like you walk around with a hood over your head right? People see you all the time. Besides, at this point you should already know if they are the local axe murderer right?
If the dinner thing happens, keep things light and focus on them instead of you. As the evening progresses, get around to the home (again, never house). You are trying to get them in the mode of selling first, then price. One step at a time. You also want to try to keep this personal instead of turning it into the REA mess up of the year. There is always the risk that they run to an agent anyway but why start them out that way?
Here is also your opportunity to explain how those commissions don't get paid and their net is higher. For far less than commissions, you can each afford to hire an attorney to go over contract and the contingencies. A flat fee REA can help you with other paperwork, timelines and so on. Yes, they do it all the time.
This approach can work but it takes a little planning and being observant of the home owner to read them.
Good luck.
This is the most sensible approach thus far! --- We've taken this approach with Condos a couple of times ... People either respond that they might be willing to sell; ... or that they are not interested in selling. If you start with $$/offer, you are getting the 'cart in front of the horse' and either revealing your 'starting' negotiation position ... or making a firm offer that may be more/less than they are willing to sell for.
Been there. There were two houses I was interested in but neither was for sale. I wrote a nice note to each but did not mention price. One family just happen to be thinking about moving back to England. They called. We talked. Had a contract in no time. But since we were the ones who really, really wanted the house we paid more than market value. It was over market value that gave them the incentive to move. You can't expect to get a house that isn't on the market and get a bargain too.
By the way, there was no need to offer to take them to dinner. That sounds like you are courting them. Come on, this is business.
I would definitely send a letter rather than calling them. An offer to buy one's house that is not even on the market would probably get a rejection on the phone right off the bat. With a letter, the shock will have time to subside, and they can then rationally think about it. I'd also include a statement to the effect of "even if you're not interested in selling right now, please keep this letter and contact us should your circumstances change." My sister received such a letter once, and called the people about 8 months later. They were still interested and she sold it to them.
If you do the internet search as suggested above to find out all you can about the current owners, I would proceed very carefully in presenting your knowledge to them. Many people would find it extremely creepy to know someone was cyber-stalking them, for whatever reason.
Been there. There were two houses I was interested in but neither was for sale. I wrote a nice note to each but did not mention price. One family just happen to be thinking about moving back to England. They called. We talked. Had a contract in no time. But since we were the ones who really, really wanted the house we paid more than market value. It was over market value that gave them the incentive to move. You can't expect to get a house that isn't on the market and get a bargain too.By the way, there was no need to offer to take them to dinner. That sounds like you are courting them. Come on, this is business.
Agreed. We were approached indirectly (neighbors talking to neighbors) about a property we own, that we might eventually someday sell.
We are in no hurry to sell it. It needs work, we're aware of that. (It is my dad's old home and though he no longer lives in it, his pension supports the property taxes). Currently its our place to stay when we go to that town to watch ball games, etc..
Anyway - neighbor says they're so interested in the house, they want to stay in the neighborhood, etc...
We make special trip into town, clean the house up a bit, and let the people see it (to see exactly how much work it requires). They ask us to name a price (which is stupid). I defer as we have not thought about selling it. They continue to ask. (This gets annoying by the way). They also trot out their disabled son (who is very charming and sweet) to try to guilt us into realizing that they make all their decisions for his benefit (and apparently I should to)...
I finally name a number that takes into account that the house needs about $40k worth of work. (because I'm annoyed and want to politely end this).
Not surprisingly, I get an e-mail about 2weeks later that they have "changed their mind".
They bought another, much smaller house (on a tremendously smaller lot) further down the neighborhood for about $40k less than my price.
Fine by me.
They did not just "really LOVE my house". They really loved my house at the thought that they could get it for a very cheap price, because we live out of town.
When they found out it they would have to pay real money for it (because I'm in no hurry to sell, if ever) ... they quickly lost interest.
If you are appealing to someone out of the blue (a cold call essentially), be prepared for the fact that they may or may not be looking to sell, and if not - they may be convinceable - but that might come at a price.
That means finding out everything you can about the owners before you contact them. It isn't hard but it takes some effort. Find out what clubs they belong to, if they have kids, the schools they attend, are they involved in lot of activities and so on. All this helps you determine how rooted they are to that house or location. By finding out about them you might also discover that they are within the 7 degrees of separation and you never knows who knows whom. The more you know the better.
A little research will also tell you the amount of the loan they took on the house, if there are any notices of default and so on. I know, this might all sound a little invasive but you are only using the information available to you.
Once you have the information, digest it. You are looking for things that might point to a motivation that gets them to sell that even they might not know about. For example. If their kids are involved in some activities, what could a location change do for that? Hurt or help? Always look to for opportunity. Maybe there are better facilities for those activities elsewhere. Are the owners politically active? They might be very involved in local politics and that could affect their desire to move. On the other hand, if they are not, then moving might not be such a big deal. Basically, I'm saying get to know then so that you have some idea just from outside, if a move is even possible or practical.
Quote:
Originally Posted by Okey Dokie
If you do the internet search as suggested above to find out all you can about the current owners, I would proceed very carefully in presenting your knowledge to them. Many people would find it extremely creepy to know someone was cyber-stalking them, for whatever reason.
That's my thought as well. I found Mack's approach a lot creepy. I have no issue with someone pulling the public record to see what I paid for the house and if there were any notices of default, but researching where the kids go to school, and what political assocation the adults have, how they spend their weekends, etc WAAAY crosses the line. In my book, that is stalking. Period.
If I found out a potential buyer and total stranger knew that much about me, I'd be calling the police and filing for a no-contact order. No way would I ever consider selling them my house in that situation.
How do you even know you want this house ? Just because you like the neigborhood and the location, how are you so sure you want the house, only by looking at it from the outside ? You're so sure you want this house you've already a price in mind !!! Dream houses can easily turn into nightmares.
It may be hideous on the inside, may need lots of updating, may have some weird form of functional obsolescence like a bathroom accessed from the dining room, the basement may be swamp or any number of other wrongs that only can be seen from the interior.
Might it not be better to have a local real estate agent try to get a one day listing for it ? Then you can get in and then decide if it's worth your trouble to make an actual offer with inspection contingencies.
"Confront" the owners? I doubt you are going to be successful "confronting" people about the property that they own, simply because you want to acquire it. I'm curious whether this post is even legit.
What the heck does that have to do with the house not being for sale in the first place?
I would be highly annoyed if someone "confronted" me about selling my home. If there is no sign in front it isn't for sale.
That's my thought as well. I found Mack's approach a lot creepy. I have no issue with someone pulling the public record to see what I paid for the house and if there were any notices of default, but researching where the kids go to school, and what political assocation the adults have, how they spend their weekends, etc WAAAY crosses the line. In my book, that is stalking. Period.
If I found out a potential buyer and total stranger knew that much about me, I'd be calling the police and filing for a no-contact order. No way would I ever consider selling them my house in that situation.
If anyone thinks in this day and age that people you are doing business with or intend to do business with aren't running checks on you, that is lala land.
The uninformed are the only people not running checks on people they do business with or engage in affairs worth hundreds of thousands of dollars.
Creepy? People are putting their lives on the Internet using Facebook, Twitter and so on, that is what is creepy.
Now who said anything about telling someone you checked on them? Of course you aren't going to tell them. But if you think people you deal with aren't checking on you, then I guess ignorance is truly bliss. They are checking on you.
No, you can't run to the police, they will ask why you put the information on the Internet. If the information is publicly available, you are wasting your time.
This is 2013. Anyone who doesn't use the available information to leverage their business prospects is at a disadvantage. Buying a house is a business decision.
Most associations post their memberships. If you think they don't, better check.
School sports are reported in local newspapers and on the Internet too.
So, when you offer on a house, say a short sale, you are going to be privy to a lot of information about the current owner? You won't know who holds title to that house, the amount owned to the bank for which they are liable and if they paid their utilities, garbage pickup, HOA fees and so forth? Of course you are. You aren't going to know why they got into a short sale position? Yes you will. When you go into their house you aren't going to see how many people live there and by the things inside, which are children, what type of clothes they have laying around, how clean they keep house and so on?
Reality check because everyone else is doing it except those pretending otherwise.
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