Contract Assignment Help Needed - Posted by aaron

Posted by Kristine-CA on July 10, 2002 at 14:47:16:

Aaron: what I do is tell interested buyers, if they ask, that I am the new owner and that the property is in escrow (because in my case it is–with a deposit). I ask them to go look at it and call me back. I don’t discuss details with anyone until they have at least driven by. My experience so far is that there are so many people asking questions that have nothing to do with anything when they don’t know the neighborhood or the house. I have people call almost everyday from out-of-town (because the prices are so low) and ask all sorts of questions. I’m pretty firm now that I need people to drive-by, unless they know the area and are already investors there.

If somebody makes an offer, I offer them two options–I’ll close it on myself (a double close actually) for one price; or I offer a discounted price if they will give me cash upfront and have the contract assigned to them. Since I want cash upfront, a discount seems appropriate, and it’s working for me. Even buyers who have never heard of an assignment are interested in a discount.

Regarding closing costs, etc. It is not customary where I am for buyers to pay closing costs. Here it is seller and buyer 50/50% and seller paying for title insurance policy. But whatever is in the contract is what your buyers have to do. I wrote a contract yesterday with the seller paying everything for closing, including misc. costs such as courier. I offered to pay those costs, but with a lower purchase price accomodating those costs (and a little mark-up). They chose a higher selling price.

I don’t always offer to pay all costs anymore. If sellers are motivated they will agree to costs that will reduce their net. Obviously, when I (the buyer) agree to pay everything, my offer reflects that. Your buyers should be able to recognize that part of the deal as well.

This is just my experience so far with assignments. I’d like to hear experience from others as well.

Sincerely, Kristine

Contract Assignment Help Needed - Posted by aaron

Posted by aaron on July 10, 2002 at 14:23:20:

Hello Everyone:-)

I have so many questions to ask. I’ll take it little by little though.

What do you tell your buyer when they ask you why you are assigning your contract? That’s the situation that I’ve been faced with. I have a house under contract, well below market value, and I’m searching for buyers. They all ask me whether I’m the owner of the home. I tell them know. Then they ask what my role is in all of this, because I’ve placed for sale by owner signs up. I tell them that my company controls the property. That I have the house under contract and that I’m going to assign it to the buyer.

I’ve been told to disclose everything so that there aren’t any problems later. So I tell the potential buyers that I’m going to assign the contract to them and if that’s a problem. They seem to be confused for some reason. They ask if I’m helping with closing and I say know. I tell them that it is customary for the buyer to pay all closing costs.

Any input would be greatly appreciated. I sincerely do appreciate each and everyone of you who reply to this post! Thanks and God Bless!!