Posted by Joe Kaiser on April 27, 1999 at 02:06:36:
You really need to wince whenever they make you an offer on something you’re selling as well.
I once winced (actually sucked wind) on a full price offer I’d received. My agent later told me it was kinda strange to do so on a full price offer . . . but I told him it was now so ingrained that it happened automatically (and they ended up paying all my closing costs so it wasn’t for naught).
Joe
Cash offers. Fair w/out Being Insulting - Posted by Lew
Posted by Lew on April 26, 1999 at 14:32:12:
For the last month I’ve been making cash offers on properties, with the intent on tying them up w/minimal deposit, and then flip them to cash buyers. (By the way thanks to everyone who helpded me get past some earlier obstacles concerning Earnest cash deposit issues w/realtors all your help has been greatly appreciated) Any suggestions on making fair all cash offers on Fsbo’s as well as Realtor listings without being insulting?? I’ve run in to a few fsbo’s where the owner won’t tell you what he want’s , but says to just make an offer. And of course with many realtors they tell you to make an offer, and lets see what the owner thinks. The problem is that if I don’t know what the seller is looking for (his bottom-line) and I make him to low of an offer he gets insulted and it’s back to square one and a lot of times I may not be able to make a higher offer. Keep in mind I try to structure these offers into what my buyer is willing to spend in a particular area, which depending on repair work that needs to be done is usually 50% to 60% of the after fixed up value of the property. I normally get comps from my personal realtor and try to use this as a guage on what to offer. Any suggestions??
Thanks much!!!
Lew
Bronchick is right - Posted by Sean
Posted by Sean on April 27, 1999 at 15:18:19:
If you’re not downright ashamed to look yourself in the mirror after making an offer you’ve definitely offered too much. An offer is just a starting point not a finish point. You can always go up, but it’s a lot tougher to go down.
You SHOULD be embarrassed to ask! - Posted by Bronchick
Posted by Bronchick on April 26, 1999 at 18:48:12:
I always make an offer that makes me wince to say it. If it doesn’t make you wince, you are probably offering too much!
Re: Cash offers. Fair w/out Being Insulting - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on April 26, 1999 at 15:40:55:
Lew,
Bassman said it all. I just want to reiterate that you should only purchase properties on YOUR terms. Offer what YOU think is right for your situation. If the offer doesn’t fly, move on to the next one.
When you understand your market, fixup/repair costs, closing/holding costs, and profit you need to make in each transaction, you won’t have to worry about insulting anyone. You’ll be armed with the knowledge you need to make a good deal for everyone involved.
I hope this helps.
Bill K. (AZ)
Re: Cash offers. Fair w/out Being Insulting - Posted by Bassman
Posted by Bassman on April 26, 1999 at 14:49:52:
Lew ,
Always live by this philosophy , and you shouldnt have ant more concerns ( at least not too many) .
" I will never BEG to buy someones House " also,
SW SW SW SW some will some wont so what someones waiting (R legrand).
Dont waste your time on houses that the people are not even somewhat motivated. If you do , YOU LOSE .
On a listed house , try to make your offer abotu 10-20% of either list price or FMV ( which are usually the same) . EX. FMV 100,000.00 offer 80-85 k , depending on whether its a sellers market or not .then sell for 110,000.00 to a motivated buyer who has at least 10k down , etc .
Good luck , hope this helps.
Just my thoughts