In this coaching session, Chris Prefontaine and several agents discuss how to craft offers that sellers are likely to accept. The conversation covers when to use an All‑Cash Offer (AO) versus a sandwich offer, how to handle sellers who give vague price expectations, and the importance of appraise‑ability and spread size. Participants walk through a scenario involving a primary‑residence lease‑purchase with existing mortgage and HELOC debt, a modest $300‑$40,000 price spread, and a 36‑month lease term. Chris recommends presenting both an AO and a sandwich offer, being transparent about the limited spread, and tailoring the offer to the seller’s motivation and debt situation. The agents also touch on using market comps, assessing waterfront premium claims, and deciding when to simplify to a single AO if the spread is too tight. The session ends with agents planning to draft lease‑purchase offers (contingent and non‑contingent) and an AO, emphasizing honesty and strategic positioning to increase acceptance rates.
Chapters
They're going to choose AO unless they just want nothing to do with it.
Right.
That was my old— before I bought, before I had the confidence to buy, I just did sandwich and AO with everyone back in the day. So. Okay, cool.
Yeah. Just a minor point purely on price. So after you're talking to a seller, right, you're looking at the home, you haven't done the comps and research, you kind of have an idea of the home. And they really just say to you, look, this just comes down to what you can offer me on price. And then what do you say to that? Do you say, oh, just tell me what you can, what you want out of the price? And it's like, well, they're like, I want as much as I can get on it, you know?
Well, I had that happen on my appointment yesterday. The seller wanted $1.069 million. The comps are a little bit lower than that, in the $900s, mid-$900s. And I asked him how he came up with it like we usually do. And he said that, you know, it's a waterfront property. He said, I put a lot of work into the property. It's all upgraded and it's really for a special buyer. So I told him, you know, with an AO, I'll take it to market, whatever you want. But the important thing is to make sure that it's going to appraise 2 years from now.
Helpful, Jeremiah.
Okay, so I guess maybe I should be specific. I have a slightly different scenario. One person has dropped the price, maybe $40,000. So it's on the market currently for slightly less than it appraises for. And they're just basically saying to me, there's a balance, right? I'd probably expect a little bit more if it's going out farther in time. And so they're just basically saying to me, I don't think they have a number in their head because they haven't seen creative deals yet, but they're just saying, Really, I just want to see what your offer is. And that would really depend on— obviously they're somewhat motivated, but they're not going to tell me, here's my exact number.
Okay. That's more context. So my thought, and the coaches can chime in, is did— okay, first, did you ask them how far they could go out so you can structure a win-win? They've been—
it's been a primary residence. So yeah, it's like a 36-month or slightly less.
If it's lease purchase.
Correct.
Okay.
Yeah, they don't want to do— they don't want to do step 2 right now.
Okay, got it. Okay, then it's even more simple because you only have 3 years to work, right? So I would give them 2 different offers, one with a, you know, what's more important than the monthly or the price? Like, do you know? And is it— is it debt-free? Should have asked that.
Not— it's not debt-free. There's quite a bit of debt.
Okay.
HELOC and the regular mortgage. And that was their biggest concern was I had informed them in one of my emails basically You might have to pay a subsidy. It looks like it's slightly—it's not super tight, but I don't think she has to pay anything monthly. So really, that's kind of the equation. So this is probably an AO then.
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I mean, I'm saying there is a little bit of room, like maybe like $300 spread. It's not a huge spread, but yeah, I mean, if we If AO makes sense in a $300 spread, then yeah.
Okay, then here's my idea. Again, coaches, I'm not— I'm just winging it out loud. So if I'm missing something, you guys chime in. I would then change what I said earlier. I would give an AO and a sandwich. The AO is going to really net them more, right? So give them an AO and a sandwich. Have the coaches or me help you.
Okay. Jeremiah, that's without you— that's without us testing it out and you going to market. So, I mean, I Very likely will have to reduce by that $300. So I would just do the AO.
You can give them both and be honest with them. To Nick's point, Nick, do you remember we had one where we said to the gym owner, we said we can't— we don't see a spread here, that we've got a spread at the buyer's meeting. So we go back and we stay in the middle. So give them both and be super honest that you don't— you don't see that happening. So you probably have to go the AO route.
Okay. All right. Sounds good. Yeah, I have a couple offers that are drafted right now. 2 lease purchase offers. I'll switch it to like one-on-one. One was contingent, non-contingent. I'll just switch it to just a non-contingent lease purchase. I mean, sorry, a contingent lease purchase and an AO. Yeah. All right. Thank you.
And I choose AO unless they just want nothing to do with it. Right. That was my old— before I bought, before I had the confidence to buy, I just did sandwich and AO with everyone. Back in the day. So, okay, cool.
