Latest / Connor with Honor: AI, Real Estate and Real Life / The Real Estate Bluff: How One ‘Best and Final’ Backfired: and My Open House Closed the Deal

Transcript

The Real Estate Bluff: How One ‘Best and Final’ Backfired: and My Open House Closed the Deal · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Hey everybody, I'm going to give you some food for thought when it comes to uh real estate, real estate transactions, and open houses.
• 0:07
  SPEAKER_00: Of course, I'm Santa ClaritaOpenhouses.com.
• 0:10
  SPEAKER_00: And in some cases, open houses actually do sell a real estate listing, case in point, very recently.
• 0:16
  SPEAKER_00: Held an open house, and it was the second weekend that I had held it.
• 0:20
  SPEAKER_00: It had been exposed online, of course, with all the fancies that agents do.
• 0:24
  SPEAKER_00: I had all the professionally taken photographs of had had all the virtual tours.
• 0:28
  SPEAKER_00: Now there's an issue with Matterport and Zillow not liking it, but whatever.
• 0:32
  SPEAKER_00: It was all posted out there for sale for everybody to see.
• 0:36
  SPEAKER_00: And during that open house, a neighbor from across the street came over and said, Well, you know, I have a friend of mine, and all of us kind of live in this neighborhood, and we really like it.
• 0:44
  SPEAKER_00: And I know she's been looking for a house for a while.
• 0:46
  SPEAKER_00: I would love to introduce her to you.
• 0:49
  SPEAKER_00: So great.
• 0:50
  SPEAKER_00: So he comes up next day at the next open house, the following day, same location, and says, Here she is.
• 0:56
  SPEAKER_00: She's on the phone.
• 0:57
  SPEAKER_00: Sure enough, the phone was connected to somebody.
• 1:00
  SPEAKER_00: I introduced myself.
• 1:01
  SPEAKER_00: She introduced herself to me.
• 1:03
  SPEAKER_00: We had a conversation.
• 1:04
  SPEAKER_00: She said, Listen, I really want to see the house.
• 1:06
  SPEAKER_00: When is it available?
• 1:07
  SPEAKER_00: And I said, Well, do you have an agent?
• 1:09
  SPEAKER_00: She said, Yes.
• 1:09
  SPEAKER_00: I said, Well, have your agent reach out to me, and then we can make that happen.
• 1:13
  SPEAKER_00: And lo and behold, they did.
• 1:14
  SPEAKER_00: She liked it.
• 1:15
  SPEAKER_00: She wrote the offer, went back and forth a few times, and then the offer was accepted.
• 1:19
  SPEAKER_00: And now we're in escrow.
• 1:21
  SPEAKER_00: Hence, case in point.
• 1:22
  SPEAKER_00: Now, during this little soiree, this little conversation back and forth about the residents, let me give you another piece of advice.
• 1:31
  SPEAKER_00: The agent that was representing her followed up with a particular counteroffer that stated on their best and final.
• 1:39
  SPEAKER_00: That means in real estate terms that we're done.
• 1:41
  SPEAKER_00: If your seller doesn't agree to this or agree to the price that we've established that we want to buy the property for, we're finished.
• 1:48
  SPEAKER_00: We're out.
• 1:49
  SPEAKER_00: So I take that back to my seller.
• 1:51
  SPEAKER_00: And the seller says, Well, I guess that's it.
• 1:53
  SPEAKER_00: We're not going to be able to get to that price.
• 1:54
  SPEAKER_00: And I said, Well, the price that we won.
• 1:56
  SPEAKER_00: I said, Well, of course, that's that's if you want to play by the rules.
• 2:00
  SPEAKER_00: And I'm all about rules, okay?
• 2:02
  SPEAKER_00: I was a cop for a long time, a good one.
• 2:04
  SPEAKER_00: And during this, you know, I understand that there's really no harm in going back yet again, countering back another time, even if it's at a different price, a price higher than what the buyer's best and final offer happened to be.
• 2:20
  SPEAKER_00: So I explained that to my seller, and I also compared it to a request for repairs.
• 2:26
  SPEAKER_00: In California, at least, as of the current state, properties are sold as is.
• 2:30
  SPEAKER_00: Everything is negotiable, though, even though properties are sold as is.
• 2:36
  SPEAKER_00: In fact, most of the time, there are some lenders out there that when it comes to health and safety stuff, they're not going to allow the house to proceed forward until these health and safety issues are remedied.
• 2:47
  SPEAKER_00: But even though property sold as is, even if somebody puts in the contract at the very beginning, and if you're a buyer, you might have run into this or might run into this, sellers get excited and they put in there, they say, well, you know, the property is as is.
• 3:00
  SPEAKER_00: Seller will not put any money in for credits or repairs or changes or modifications or any of that stuff with regard to the property.
• 3:07
  SPEAKER_00: That's fine.
• 3:08
  SPEAKER_00: They put their line in the sand on the contract.
• 3:11
  SPEAKER_00: But, you know, you get through escrow two, three, four weeks, and you get kind of, you know, past the request for repairs or up to the request for repairs point, and 99.9% of the time, even if that was something that was agreed to, their quest for repairs is issued anyway.
• 3:26
  SPEAKER_00: They say we found these issues.
• 3:27
  SPEAKER_00: We found these issues that we didn't realize existed, and they are of a health and safety nature.
• 3:33
  SPEAKER_00: The seller, if it is a real health and safety issue, they're probably going to have to attend to those anyway, even if they sell to this buyer or another buyer.
• 3:41
  SPEAKER_00: And if the buyer's being reasonable about the request, they're not charging, you know,$500 for a GFCI outlet.
• 3:46
  SPEAKER_00: They're actually putting real numbers down for what repairs or these things would cost.
• 3:50
  SPEAKER_00: And these are health and safety issues that need to be attended to.
• 3:54
  SPEAKER_00: Whether this buyer or another buyer, you know, most of the time that's usually looked at in a positive way from the seller's point of view.
• 4:04
  SPEAKER_00: In other words, the rules are open houses don't sell houses.
• 4:10
  SPEAKER_00: So we broke that one.
• 4:11
  SPEAKER_00: And the other rule typically is once somebody puts out their highest and best or best and final, then you don't you shouldn't respond because, well, it's not kosher.
• 4:22
  SPEAKER_00: Well, in this fact, I would say that real estate, if you're handling it from a business perspective, more than likely you probably wouldn't put best and final.
• 4:31
  SPEAKER_00: But if you're handling it from an emotional standpoint, maybe you would.
• 4:35
  SPEAKER_00: So going into a real estate transaction, don't be scared of having your house, you house held open at an open house, but make sure that it's done correctly so it doesn't put you at too much risk, liability-wise.
• 4:48
  SPEAKER_00: And also that the agent makes sure everybody that comes in is identified in some way without being completely offensive at your request as the seller.
• 4:57
  SPEAKER_00: And then the other thing, if somebody tells you, no, we're not going to, or this is it, this is final, you can forget it after this, you know, you might want to entertain going back one more time.
• 5:06
  SPEAKER_00: The worst they can do, the worst thing they can do is not respond.
• 5:11
  SPEAKER_00: Well, maybe cussing might be a little bit worse, but or making fun of you like Connor, you have a face for radio.
• 5:17
  SPEAKER_00: Anyway, I do appreciate you watching today.
• 5:19
  SPEAKER_00: That's a little bit of a real estate update.
• 5:21
  SPEAKER_00: You can find me, of course, at Santa Clarita Openhouses.com.
• 5:25
  SPEAKER_00: I have to enunciate it because when I do the text overlay, it always messes that up.
• 5:30
  SPEAKER_00: We'll see you in the next one.
• 5:31
  SPEAKER_00: You can check me out at Santa Clarita Openhouses.com and of course Santa Clarita Artificial Intelligence.com.
• 5:38
  SPEAKER_00: Not Navatar, the real person.
• 5:40
  SPEAKER_00: I don't know why the pinching matters.
• 5:41
  SPEAKER_00: We'll talk to you soon.