The Best Way to Lower Your Seller’s Price | Real Estate (LA 1524)

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The Best Way to Lower Your Seller’s Price | Real Estate (LA 1524)

The Best Way to Lower Your Seller’s Price | Real Estate (LA 1524)

Transcript:

Steven Butala:
Steve and Jill here.

Jill DeWit:
Hello.

Steven Butala:
Welcome to the Land Academy Show, Entertaining Land Investment Talk. I’m Steven Jack Butala.

Jill DeWit:
And I am Jill DeWit. Wait for it. Broadcasting from sunny Southern California. I had to say that. Can you see? Can you see?

Steven Butala:
Today, Jill and I talk about the best way to lower your sellers price.

Jill DeWit:
What?

Steven Butala:
I can’t wait to.

Jill DeWit:
Why would we ever do this?

Steven Butala:
Hear how Jill does this also.

Jill DeWit:
What? I need to do it. How do I do it? We can help. We got this. I’ll tell you why this happens too. Although, you probably know.

Steven Butala:
Before we get into it… Well, sometimes you send a letter out. The thing comes back and they say, “I got your letter and I do want to sell but this price doesn’t work for me.”

Jill DeWit:
No, no, no. I’m lowering their price of any one I offered them.

Steven Butala:
Whoa.

Jill DeWit:
Yeah. Hold on. Let me-

Steven Butala:
Yes. Set us up.

Jill DeWit:
Let me tell you what the show is really about today, babe.

Jill DeWit:
That’s great.

Steven Butala:
You know what?

Jill DeWit:
That’s awesome.

Steven Butala:
Before we get into it, let’s take a question posted by one of our members on the landinvestors.com online community. It’s free. And if you are already a member, join us on Discord.

Jill DeWit:
I thought you were saying, “If you work for your spouse, you understand what just happened.” I work with, not for.

Jill DeWit:
All right. Bobby wrote, “Hello, to this fabulous community. And thank you again for taking the time to read this. One area I’m getting hung up on is checking counties against the listed to universal rule. This usually kicks out otherwise great counties as they pass all other tests. Except that one. I thought I understood it but can someone please explain, in your words, and the overall importance of this test so I can be sure that I’m applying the correct logic. Thanks so much.”

Jill DeWit:
Go.

Steven Butala:
Here at Land Academy, we have what is called a red, green, yellow test when you choose a county to send mail or zip code. And before I send mail out, it has to pass these three tests. And one of them is the listed to universal rule, which means how many properties are listed for sale on the MLS against the universe of like-kind properties in that county or zip code. So, there might be 50 pieces of property that are listed for sale and 5,000 pieces of property that are in the universe of just vacant parcels in that county. And you want that number to be low.

Jill DeWit:
I like that number.

Steven Butala:
Yeah.

Jill DeWit:
50 to 5,000, I can do. 1,000 to 5,000, not so great.

Steven Butala:
Or 5,000 to 5,000.

Jill DeWit:
Really bad.

Steven Butala:
San Bernardino County California is like that. So, you don’t want to generally send mail. In general, you don’t want to send mail to where there are just tons and tons of for-sale property. And this statistic is designed to point in the direction of, don’t do that.

Jill DeWit:
This is such a common thing. I love it. When you do this Bobby and you do it, just get into it. Figure it out and when you’re staring and please pull at least zip codes or counties or something lined up. Two or three of them are going to jump to the top. You’re going to go, “Oh, I see it now.” So, as you’re starting the process, we all kind of question it like you are but hang in there.

Jill DeWit:
Thank you.

Steven Butala:
Today’s topic: The best way to lower your sellers price. This is why you’re listening.

Jill DeWit:
As I alluded to in the beginning, here’s the setup.

Steven Butala:
I want to sit back and listen.

Jill DeWit:
Okay. This is fine. So, you picked a county. You did what Bobby said. You sent out your offers. You think you did a great job pricing your offers. And they go out in the mail and the seller gets them. One or two things could happen. How do I lower the sellers price? Sometimes you might have accidentally, first, priced incorrectly. “Uh-oh. Now I got to lower the seller’s price.” Or the other way is, “I priced it correctly but now there’s a problem and I need to lower the sellers price.” So, that is what this is about here. I’m going to tackle that you price your offers correctly first.

Jill DeWit:
So, I sent out all these offers for $3,000 an acre because I know I can sell them for six, seven, $8,000 an acre in this area or whatever it is. I get it back. They signed it. It’s awesome. I look at them going, “Oh no. This was too much. No wonder they sent it back so fast.”

Steven Butala:
This is not uncommon.

Jill DeWit:
Right. And you’re looking at this going, “Shoot. Ah, shucks. I got to tell this guy the bad news. I still want it but this price doesn’t work anymore.” So, this part should not be hard. You price it correctly and you found out though that there’s some problem or some issue or some attribute that it doesn’t have like the opposite of an attribute slash however, it’s not a deal killer. That’s the thing. If it’s really that bad, you’re not buying in any way. It doesn’t matter how well you priced it or how if they say, “Just take it off my hands.” You’re going to say, “I don’t want it anyway,” because that happens too.

Jill DeWit:
So, you need to come back with them and say, “Look, here’s the deal. I did not realize it had this. It was this far from this. I didn’t realize that you have the legal access, not the physical access. I didn’t realize that…” Just something like that. So, how do you solve that? So, you’re coming back to the seller saying, “I need to lower the price and here’s why.” You need to correctly… Just point it out and tell them. And you can do it with screenshots. You can make a little videos for them.

Steven Butala:
So, you’re making the seller aware of some innate flaws in the property and making them aware of the fact that their price has to be adjusted accordingly.

Jill DeWit:
Right. Because the guy next door… It could be even the property next door. “The property next door, we wouldn’t be having this conversation.” And usually the sellers go, “Yeah. I know that. I know access out there is tough on my property and with that guys, you can drive right up to it. I’m well aware of that.” And that’s where you just say, “Yeah. So, because of that, when I sent out these offers, I didn’t know.” And you’re just correctly saying, “I still want it. Here’s the reason why I need to adjust the price and if that works for you, great. If it doesn’t, I understand,” and let it go. And usually they’re going to understand.

Jill DeWit:
So, it goes for both situations. Less is more. Don’t over complicate it. You don’t need 16 reasons why. One or two saying, “Shucks. Now it’s worth this to me. Here’s why. Do you still want to get the deal done?” That’s it. That’s how you lower the sellers price in this situation.

Steven Butala:
What percentage of times that this happens, does it actually work for you, personally?

Jill DeWit:
Oh, does it work? A lot. A high percentage.

Steven Butala:
More than 50%?

Jill DeWit:
Yes. More than 50%. “How many times do I have to do this?” Less than 10. Listen, it doesn’t come up that often.

Steven Butala:
How can we be you, Jill?

Jill DeWit:
Oh. That’s very sweet.

Steven Butala:
Teach a class.

Jill DeWit:
I’m working on it. Oh, stay tuned. I’m working on that. We were just having this discussion, as a matter of fact, this week while we were filming, Stephens sister is here with us. She is the also less than 1% that we can each build rapport with people in less than 45 seconds. We looked at each other and said, “Oh yeah, I can do that.” And she can’t. So, not everybody has that. And I hope you do but if you don’t, find someone or I’m going to teach you. By the way, I’m going to really try to teach you and get you there.

Jill DeWit:
So, that is that one. So, the second situation is, “Okay, the mail went out. They signed it and they sent it back.” They’re all excited because, “Oh no. I really did offer too much.” I priced them incorrectly. I went in way too high in this area.

Jill DeWit:
“Oh and look at the flood of signed offers I’m getting back.” That’s another indication that you did that.

Steven Butala:
“They must love me.”

Jill DeWit:
“Oh, they love me.” Like, “Wow. All of a sudden, I hit a hundred people on a good day.” No, no. You probably didn’t. You probably way overpriced this area. They are all looking at you like, “Cha-ching. It finally came in. Look, sweetheart. I knew we should have been hanging out for a good sales price and here it comes. This is the, make me move number, we all wanted.” So, you’re like, “Oh great.”

Steven Butala:
So, whoever is setting your prices and doing all the research about where to send mail.

Jill DeWit:
They goofed.

Steven Butala:
They failed. And that’s me in this relationship.

Jill DeWit:
Right.

Steven Butala:
So, sometimes I price mailers.

Jill DeWit:
It happens.

Steven Butala:
Yes, even me.

Jill DeWit:
So, what do you do? You don’t just throw them all out and say, “Well, that’s a failed mailer.” No. So, the first thing I want you to do is take these all, line them all up, look at them and see if they make sense to at your price. Are they still good properties? And I bet there’s a good percentage of those that you’re like, “You know what? I love this property. I think it’s great. Boy, if I had only would have offered this and they would accept it, we would be skipping and getting the deal done.”

Steven Butala:
Again, this is not that uncommon.

Jill DeWit:
It happens.

Jill DeWit:
So, what do you do? “All right. I got to tell the seller… I can lower the price but now I’m the problem. He’s not the problem.”

Steven Butala:
“Really, I’m the problem.”

Jill DeWit:
Not the property. The property is not the problem. “I’m the problem. I did everything wrong.” So, what do you do? Tell them that, “I goofed,” and here’s what you do. “I goofed. I priced this too high because I thought your property was closer to X.” So, I’m not necessarily fibbing about an attribute. You don’t want to say, “My percentages were off and I hit the wrong button and I priced 50% and I meant the price 20%.” You never share that stuff. Any kind of a thing.

Jill DeWit:
You just want to gently say, “I made a mistake. I didn’t mean to offer that much.” And then I usually throw in something like, “Boy…” Because I could say that… This is true. “If it were downtown, I would have paid that but it’s not in the middle of town. I made a mistake. So, it’s out here. I still want it.” We all know that I wanted those properties anyway. You are kind of setting them up for what you meant to do. And to say, “My best offer is this.” And that’s all and you’re telling them what you’ll pay.

Steven Butala:
So, there’s people out there listening to this and thinking, “Well, I’ve been in sales for my whole career and it’s all about getting somebody on the phone and then manipulating them.” Let’s just call it, what it is. Manipulating the situation. So, cutting to the chase here. There’s some people that are saying, “Well, why wouldn’t you do every mailer like that? You get a huge response back and then you have a better shot at adjusting the price.”

Jill DeWit:
That’s a nightmare.

Steven Butala:
That’s what I think too.

Jill DeWit:
You don’t want to be that guy and you don’t want to be on the phone that much.

Steven Butala:
First of all, that way crosses the line of ethics. And number two-

Jill DeWit:
I hate that. I don’t like those people.

Steven Butala:
And I also think-

Jill DeWit:
You may as well send out a neutral postcard and just say, “Call me. I want to buy.”

Steven Butala:
You’re putting an undue burden and workload on the person, in this case, it’s Jill and her staff. So, I could do that all the time because it works. She turns it around often.

Jill DeWit:
We could say, “One million dollars,” and send them all out. No. Don’t do that because that makes your life so hard.

Steven Butala:
That’s what I think too.

Jill DeWit:
So, again, I’m not doing this on every one. Let’s say I price them incorrectly. A hundred come back. All right. I pick out the 10 that I love and I know I really want to do. And then by call number three, I’m getting good at this conversation. I do my best. “I goofed. I thought it had this. I thought it was closer to that. I do still want it. This is now my best. If it works for you, great. If it doesn’t, I totally understand.” And let it go. And you can follow up. If that does not sit well with you, you could follow up with, “I was looking to only pay this. If you want to sleep on it, think about it. And you want to hit me up later, email me or call me or text me with your rock bottom number, I will look at that and see if I can make it work. But that’s it. And we’re not going back and forth. I’m not playing that game.”

Steven Butala:
All of this. There’s always a few people in Land Academy that have this tragic attitude about, “Oh, I screwed this mailer up so bad. I can’t come back.” She was providing ways to come back from a failed price mailer in a really positive way. To turn it around and get yourself some purchased property at the right price for you. But I’ll tell you what, what you can’t come back from is sending out an offer for such a low price that everybody’s just livid.

Jill DeWit:
And no one calls you and no one wants to talk to you at all.

Steven Butala:
That’s right.

Jill DeWit:
So, if you get them on the phone, that’s a whole nother show. We’ve done that before. So, you can work with those too but I’m glad that we’re doing this because this is one of the hardest things that I hear people do. And I agree. It’s much easier to add money than it is to take it away. It’s like, “You were going to do what with that five grand? Whew. Okay. I hear ya. I know. I understand where you’re coming from and this has been a tough year for all, but gosh, this is my business and I just can’t afford to do it. I wish I could but I can’t. This is my best.”

Steven Butala:
Great stuff, Jill.

Jill DeWit:
Thank you very much.

Jill DeWit:
Happy you could join us today. Monday through Friday. You can find us right here on The Land Academy Show.

Steven Butala:
Tomorrow, the episode on The Land Academy Show is called, Part-time real estate investing or let’s say, land investing. You are not alone in your real estate ambition.

Jill DeWit:
Do you like being back at the beach? Please be nice. Please be nice. I didn’t say anything about the state. I didn’t bring up politics. I’m not bringing up anything. Just, are you happy to be back here by the water?

Steven Butala:
I love not being a citizen of the state and being here on a sort of vacation with you.

Jill DeWit:
That’s not what I asked you.

Steven Butala:
Yes. I like being back at the beach with the circumstances we’re in now.

Jill DeWit:
Thank you. Do you like the water, the humidity, the sunshine?

Steven Butala:
Yes.

Jill DeWit:
The not, a 110.

Steven Butala:
Yes. I love that. I love the weather.

Jill DeWit:
Good. Got to get something out.

Steven Butala:
She’s the one to talk about money or people.

Jill DeWit:
Nothing negative.

Jill DeWit:
Hey, if you need access to any sort of ownership or property details, including owner phone numbers and FEMA flood map overlays, check out www.neighborsgroup.com created by investors, that’s us, for investors like you.

Steven Butala:
We are Steve and Jill. Information-

Jill DeWit:
And inspiration-

Steven Butala:
To buy undervalued property.

______________________________________________________________________________________________________________________________

If you enjoyed the podcast, please review it in Apple Podcasts . Reviews are incredibly important for rankings on Apple Podcasts. My staff and I read each and every one.

If you have any questions or comments, please feel free to email me directly at steven@BuWit.com.

The BuWit Family of Companies include:

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Land Academy PRO is the brainchild of founders Steven Jack Butala and Jill DeWit. Designed at the request of Land Academy members who are ready for a higher level, we’re excited to continue to provide the tools and support needed by professional investors.

Each level comes with a preset amount of included data, Concierge Mail service, and postage. For example, the Green level includes 6,000 units of completed-for-you mail completely out the door at no extra cost to you.

All levels include a PatLive introduction and preset script (we will set up your phone answering for you), use of Land Academy’s personal Transaction Team to manage your deal flow, an AirTable (CRM) base setup managed by our (and your!) Transaction Coordinator, personal consulting, regular office hours, and includes your Land Academy subscription cost.

If you’re making this a business, Land Academy PRO takes the work off of your plate so you can focus on the things that matter – like running your business.

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Concierge Data+ (with data) Included mailers each month (data + concierge + mailer + postage). Our team will do your data for it and get it out the door.
6,000 mailers 9,000 mailers 12,000 mailers 15,000 mailers 18,000 mailers
PatLive introduction at no cost We will help you establish your first script and get PatLive set up on your behalf to answer your phones.
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Transaction Coordinator Use of our personal Transaction Coordinator team to manage your deals. Trained and ready to go!
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Land Academy No more separate charges - Land Academy is included with LA Pro Membership. This includes all education, tools, support, and future releases.
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Subtotal: $8,550 value $8,550 value $9,550 value $12,050 value $12,050 value
Mail Value: $7,500 value $11,250 value $15,000 value $18,750 value $22,500 value
Total Value: $39,050 $42,800 $47,550 $53,800 $57,550
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Green

$10,060

per Month

Concierge Data+ (with data) Included mailers each month (data + concierge + mailer + postage). Our team will do your data for it and get it out the door.
6,000 mailers
PatLive introduction at no cost We will help you establish your first script and get PatLive set up on your behalf to answer your phones.
$500 value
Transaction Coordinator Use of our personal Transaction Coordinator team to manage your deals. Trained and ready to go!
$7,500 value
AirTable Ready-for-you CRM managed by your personal Land Academy Pro Transaction Coordinator
$100 value
Personal Consulting 1 on 1 personal consulting with our Transaction Coordinator each week.
-
Regular Office Hours Regular office hours with Jack and Jill + our staff. Private for LA Pro Members Only. (Think Career Path Office Hours)
$2,500 value
ParcelFact ParcelFact is included in your LA Pro membership with unlimited pulls.
$150 value
FREE Career Path Access
$23,000 value
Land Academy No more separate charges - Land Academy is included with LA Pro Membership. This includes all education, tools, support, and future releases.
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Subtotal: $8,550 value
Mail Value: $7,500 value
Total Value: $39,050
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Concierge Data+ (with data) Included mailers each month (data + concierge + mailer + postage). Our team will do your data for it and get it out the door.
9,000 mailers
PatLive introduction at no cost We will help you establish your first script and get PatLive set up on your behalf to answer your phones.
$500 value
Transaction Coordinator Use of our personal Transaction Coordinator team to manage your deals. Trained and ready to go!
$7,500 value
AirTable Ready-for-you CRM managed by your personal Land Academy Pro Transaction Coordinator
$100 value
Personal Consulting 1 on 1 personal consulting with our Transaction Coordinator each week.
-
Regular Office Hours Regular office hours with Jack and Jill + our staff. Private for LA Pro Members Only. (Think Career Path Office Hours)
$2,500 value
ParcelFact ParcelFact is included in your LA Pro membership with unlimited pulls.
$150 value
FREE Career Path Access
$23,000 value
Land Academy No more separate charges - Land Academy is included with LA Pro Membership. This includes all education, tools, support, and future releases.
$300 value
Subtotal: $8,550 value
Mail Value: $11,250 value
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Concierge Data+ (with data) Included mailers each month (data + concierge + mailer + postage). Our team will do your data for it and get it out the door.
12,000 mailers
PatLive introduction at no cost We will help you establish your first script and get PatLive set up on your behalf to answer your phones.
$500 value
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$7,500 value
AirTable Ready-for-you CRM managed by your personal Land Academy Pro Transaction Coordinator
$100 value
Personal Consulting 1 on 1 personal consulting with our Transaction Coordinator each week.
$1,000 value
Regular Office Hours Regular office hours with Jack and Jill + our staff. Private for LA Pro Members Only. (Think Career Path Office Hours)
$2,500 value
ParcelFact ParcelFact is included in your LA Pro membership with unlimited pulls.
$150 value
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Land Academy No more separate charges - Land Academy is included with LA Pro Membership. This includes all education, tools, support, and future releases.
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Concierge Data+ (with data) Included mailers each month (data + concierge + mailer + postage). Our team will do your data for it and get it out the door.
15,000 mailers
PatLive introduction at no cost We will help you establish your first script and get PatLive set up on your behalf to answer your phones.
$500 value
Transaction Coordinator Use of our personal Transaction Coordinator team to manage your deals. Trained and ready to go!
$7,500 value
AirTable Ready-for-you CRM managed by your personal Land Academy Pro Transaction Coordinator
$100 value
Personal Consulting 1 on 1 personal consulting with our Transaction Coordinator each week.
$1,000 value
Regular Office Hours Regular office hours with Jack and Jill + our staff. Private for LA Pro Members Only. (Think Career Path Office Hours)
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Concierge Data+ (with data) Included mailers each month (data + concierge + mailer + postage). Our team will do your data for it and get it out the door.
18,000 mailers
PatLive introduction at no cost We will help you establish your first script and get PatLive set up on your behalf to answer your phones.
$500 value
Transaction Coordinator Use of our personal Transaction Coordinator team to manage your deals. Trained and ready to go!
$7,500 value
AirTable Ready-for-you CRM managed by your personal Land Academy Pro Transaction Coordinator
$100 value
Personal Consulting 1 on 1 personal consulting with our Transaction Coordinator each week.
$1,000 value
Regular Office Hours Regular office hours with Jack and Jill + our staff. Private for LA Pro Members Only. (Think Career Path Office Hours)
$2,500 value
ParcelFact ParcelFact is included in your LA Pro membership with unlimited pulls.
$150 value
FREE Career Path Access
$23,000 value
Land Academy No more separate charges - Land Academy is included with LA Pro Membership. This includes all education, tools, support, and future releases.
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