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How do we come up with an Offer that will be a Win-Win for both Buyer & Seller?

Posted on Dec 18, 2009 by in Active Rain | 0 comments

How do we come up with an Offer that will be a Win-Win for both Buyer & Seller?

 As you all know I am a Land Specialist. What does that mean? I know the inventory i.e.: I am familiar with almost every Lot that is on the market in the greater Los Angeles Area. Either I have tried to get the listing or had some sort of contact with the listing agent and or the sellers, or over the years have sold the land.

  So now let’s get to the specifics, I have a listing, where the buyer approached me and wanted to see if this or any other lots would make financial cense for them. After numerous questions of budget, likes, dislikes we narrowed down the inventory to three specific lots.

 Then, I introduced them to a couple of architects who confirmed the same information in more of a technical manner then I could. Let’s fast forward; they were ready to write an offer.

 It was clear that this particular lot was perfect in most regards, to their likes, the location, the difficulty of building as well as their limited budget.

 The property was well priced; in this market we priced it below market to generate an offer. This is where it gets interesting. The buyer wants it for 75% of the value. It is an inexpensive lot. Thirty thousand dollars separate the buyer and the seller from having a win-win scenario. Who will loose everyone, there will be no sale. The buyer will not be able to buy another property in the Santa Monica Mountain range that will accomplish 90 per cent of their wants and needs. Ironically in the big picture $30k is pocket change, since the future value of the home will be at least $1.3m to $1.6m. Total cost to build with land around $600k, what an upside.

 I have tried to reason with the buyers, now they are underground. I actually feel bad for them. Had I overprice the lot we could negotiate and they would be happy….. Any suggestions? Thoughts? Where am I going wrong?

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