Your net worth is nothing compared to your net word.
On a Monday afternoon I spoke to a seller about his house. We discussed the details and I offered him $170K. He said he'd call me back. The next day I left him a message Two days after our initial conversation he did call back and said he's sell at $189K. I then told him I'd need 24 hours to think about it, run my numbers and I'd get back to him. Even at $189K I knew I could make a decent check on this house, but I'm not in business for decent checks.
The next day, a Thursday, I called him back and told him I could do $180K. He agreed and we opened escrow. I got on the phone and texted my buyer the address. He agreed to buy the property from me at $205K. $25K wholesale fee is about the minimum I'm looking for on deals this year so that worked out quite nice.
The next morning as I was walking in the door of baby gym with my daughter, my phone rang and it was a number I didn't recognize. I answered and it was the seller. He said yesterday afternoon he spoke with another buyer and they offered him $189K. He went on that $9K was a lot of money and he didn't know what to do. I then reminded him that we had a deal. He gave me his word and I had already opened escrow. I then handled his objection by saying I wouldn't come back at him and tell him I needed a discount in price because I found some work that needed to be done and I hadn't budgeted for it. Therefore, it was fair that he was asking me to raise my offer just because he found someone willing to pay more. I then used one of my favorite lines, "Are you a man of your word?" That was all it took. He then apologetically said he just wanted to let me know and that he would sell to me at our agreed upon price.
Of course, I still never expected him to send back the escrow docs and tossed around the idea of splitting the difference with him, but that is really against my principals and to me, "splitting the difference" is never 50/50. I usually try something like 70/30 in my favor.
I stayed on top of escrow on this one and had my escrow officer even call him to see when he was sending docs back. It took him almost a week to get them returned to escrow, but he did, we closed and I picked up a $25,000 wholesale fee.
Are you a man/woman of your word?
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