How to Price House Offers (JJ 689)
Transcript:
Jack: Jack and Jill here.
Jill: Hi.
Jack: Welcome to the Jack Jill Show, entertaining real estate investment talk. I'm Jack Butala.
Jill: I am Jill Dewitt, broadcasting from sunny Southern California.
Jack: Today, Jill and I talk about how to price house offers. There's a couple ways, and we're gonna make this brief and cut really to the chase in this episode about how to sent out a successful offer campaign to a group of offers or neighborhood that you selected, so that you can achieve the same numbers that we do for every 2,500 houses that we send offers to. We buy a house, and we flip it for a $20,000 to $40,000 bucks. We don't clean it up, we don't renovate it, we just sell it to the guy that's gonna do that.
Jill: I hope I have stuff to add, Jack. This is really all you, so here's what I wanted to do on this show, please. This is all you, so I'm gonna come up with questions-
Jack: Perfect.
Jill: As you describing things, I'm gonna ask you.
Jack: Every man's dream.
Jill: Nice.
Jack: Oh wait, my woman's got more questions. Let's sit down and have a cup of coffee and answer questions-
Jill: Talk about it. Thank you.
Jack: Before we get into it, let's take a question. Here's a question posted by one of our members on the JackJill.com online communities free.
Jill: And it came from a man. Joe asked, "I've got a guy selling two adjacent partials in Elko County, Nevada. One is 2.5 ... One is a 2.53 acre parcel with a rod running through the middle of it." What about that? Okay. "It looks like there's a build able space on either side," interesting. "Either less try to grab one parcel but not the other, just get them both ..." So what is-
Jack: So that's the whole question.
Jill: Like a pole?
Jack: Let's hold on. This ties exactly, ties exactly into what we're about to talk about. The beginning of the sentence is I've got a guy selling two adjacent properties, so I don't know how he came about this seller. If you sent him an offer, so for us in this deal, we would've sent the guy probably a $500 offer to buy each of his two and half acre properties, in which case if he signed it and sent it back, here's exactly what I would do.
Go on to Parcelfact.com, which is full disclosure, a company we own, see if the property looks any good, check it for access, probably do two or three other points of due diligence like does this guy actually own it, pull a property report in Real Quest Pro, bang, bang, bang, it's about four minutes later, and I've made up my decision. I don't talk about rods or try to negotiate the deal. This is where everybody gets hung up in this whole industry. I don't question myself, I don't care 'cause I'm gonna be out $1000 if I'm wrong, which by the way, we've almost done 16,000 deals and I can count on both hands the times I've been wrong about this.
So this old adage of get to know the piece of real estate intimately and everything about it so that you can maximize price when you sell it, throw it all away. You're never gonna make dough in land. If you look at every piece of every asset [crosstalk 00:03:11], you talk about your rod, your rod doesn't matter. Even though Joe, you think it does.
Jill: I am holding back, I am not gonna say it 'cause I know we're E for everyone. Somewhere there's someone driving in a minivan with kids in the backseat-
Jack: That's right.