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  • Steven Fletcher

The Whisper Price

Every owner wants to sell their property at top dollar- totally get it.


But,


How do we close the rift between their ideal price tag and the price we need to acquire the property?


Sometimes we can't- keep it friendly and keep it moving.


For the others, we (or our broker) need to walk them through how we're envisioning the project, the costs associated, and the time needed.


These are generally smart people who understand real estate operating costs- they'll (sometimes) see that we won't be paying the same overhead as them.


The hope is that we walk them down and eventually get to the "realistic" price they had in mind.


Ie.) "Upon close, we'd enter a 3-4 month permitting period, would need to execute at least $X in renovations (specifically to Units B and C, which aren’t metered) that would require at least 6 months, all before sourcing tenants and making our first dollar. To add, the purchase would trigger a re-assessment of the property taxes and incur much higher insurance costs than current, which were fine with so long as we can agree to a number that makes the project worthwhile for us."


-We walked them through our strategy


-Demonstrated that we know what's wrong with the property and are able to solve the issues


-Highlighted the assessments/insurance jumps that would occur post close to convey how our operating expenses will differ


-All while, substantiating our own offer price


From here, it could be a game of back and forth or a quick hang-up after the phone call.


You never know and that's why it's important to keep taking reps.

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