"I saw that property before, I saw it when it was X and you want me to buy it at XX." Yes my friends these buyers have for months called me out and demanded fresh product. Truthfully, I have to ask you to consider the wisdom of this line of reasoning.
What the buyer is really saying is that I had a chance to buy this cheaper than this! Now I ask you is it the sellers fault that the buyer delayed or blew a purchase? I think not but it does say a lot about the quality of the buyers.
Good buyers see the problem after experiencing personally a couple of times. But clearly there are many new faces coming to this market place every day and they do not know the nature of this very imperfect market place.
The Imperfect market place is full of conflict and faulty data. What is an imperfect Market?
"A market where information is not quickly disclosed to all participants in it and where the matching of buyers and sellers isn't immediate. Generally speaking, it is any market that does not adhere rigidly to perfect information flow and provide instantly available buyers and sellers."
Because of this nature it is absolutely necessary that results be rewarded and poor performance rejected. I have as of this date received more than 80 LOIs and delivered 28 tapes for review to buyers that have correctly completed the necessary forms and their NCND's.
The timing of this is the critical buyers that take days to complete a form or which make issues of process do not close deals unless I make a special effort to get them the deal. I make the effort as offer as possible but due to time constraints I less and less time to help.
Why do tapes and properties continue to float in the system? Because they were bought once repackaged, then repackaged again and sold again.
I have seen some AZ, MI, UT and OH properties float for 4 months in 4 to 5 slightly different or almost identical tapes. The prices slowly rise and the buyers which had a great opportunity 3 months ago are now upset that today I gave them a tape which contained properties they have seen. Floaters are everywhere and we all need to understand that you get one shot at the lowest price. You passed on it and you had access to it or at least a shot at buying it. That is a shame!
Next!!
The Price is the door not the prize. Today I had three buyers looking at a sun belt tape that was over priced by the financial institution selling it.
I tell everyone the same thing. At every office private investor or Bank there is a person that can and does match the numbers on LOI offers with the column that has their price.
Many of these people are overworked, they are tired and they do not care about the time or the sweat invested in the generation of the LOI they only care about the total price.
LOI's are important and should be made on the basis of a good faith estimate made by the seller but subject to the due diligence of the buyer.
This process always adjusts the values inline with the market on the date of sale and the associated risk discount the seller must make to attract legitimate offers. The Price is the door not the prize.
Be well and make it a win win for everyone!
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