Knowing When It’s the Right Buyer
By: Walter Sanford
Preventing the Loss of a Sale
Sometimes, you have the right buyer who wants to buy from a seller that you think should have the motivation to sell. This process can be frustrating. Add in the fact that you have both ends of the transaction and your buyer doesn’t believe that you can’t get the job done. Also, you know that your seller must sell, but all is for naught…because the sellers just will not get together to move forward.
Often the only thing you can do is send a final letter to the sellers, outlining from what they might be walking away. The letter might get to some partners who haven’t heard the whole story. The letter might make them realize what costs are and also give them a glimpse of the future. It also shows your buyer that you are doing everything possible to make the deal happen! At this point, what do you have to lose?
Take a look at a letter that I did for a coaching client this week:
Address (send to all addresses you have for the sellers)
City, ST ZIP
I am writing to you, because our discussions have not made sense to me. Through the years, I have too often heard the statement — “I wish that I had taken that offer you brought me last year.” Sometimes, it was because the seller did not understand the advantages on jumping on an opportunity from the rare “right” buyer.
I have included a copy of the offer to each of the addresses that I have in my file. I cannot disclose the name of the buyer until it is accepted. I have this buyer pre-approved for financing and I have confirmed their down payment.
Based on the ownership of your property, the taxes, insurance, utilities, and maintenance would be about $_____ per month, should you keep the real estate.
Based on the sales price less what you owe and less closing costs should you accept this offer, your equity is approximately$__________. Should you invest the equity at a current safe return of 4% that would return $_______ per month. When you add your monthly costs and the monthly loss of opportunity income from your equity, you are losing $________ per month.
I realize that your decision not to sell may have nothing to do with money; however, if that is an issue, we are also coming upon some changing times. Higher interest rates will reduce future buyers and reduce final sales prices. It will, however, increase your safe return income on your equity should you sell. Selling would also end your management responsibilities.
I have now said it all. You are the boss, but you can’t say you were not informed. This offer is good for 15 more days. After those fifteen days, we will be making offers on other properties.
Sometimes, there is one best buyer, and this one may be the one. Please let me know your final decision at your earliest convenience.