Posted by JFinke KC on April 09, 2002 at 21:01:00:
wm-pa,
If I had a seller that was willing to drop his asking price by nearly 25% right off the bat, I’d be calling him every day until I got a difinative answer. He will probably be willing to go much lower.
Get on the phone ASAP and don’t stop until you talk to him. In the mean time, read a couple books on negotiating and get that price even lower. Of course, you’ll have to run your numbers once the contractor looks at it to make sure you actually have a deal.
I made an offer on a FSBO for a rowhome in not so great neighborhood. The seller asked for $45,000. House comps in the area are $45-56,000. Needs about $3,000 to look like new. I asked the seller if I were to pay all cash what would he want to sell it for? He said he would call me back…one week later he did. He asked me about the offer I made and again I said if I were to give you all cash tomorow what price would you give me. After a 15-20 second pause…he said $35,000. I told him I think that sounds ok but I would have to schedule an appointment to have my contractor inspect the house first. We agrred on a date 1 week later and all looked good until the day I was to go over for the inspection, he called and said I will have to reschedule the inspection. That was 3 weeks ago and the owner still has not called. The house is still up for sale. Should I contact him by phone or mail…What should I ask him?
The house belonged to a family relative who died and he was selling the house to get rid of it. Am I wasting my time or should I contact him?
Thanks
wm-pa
Posted by Ron Coultas on April 09, 2002 at 19:05:54:
This “seller” is not motivated personally - as you said “selling the house to get rid of it” - therefore you need to contact him as often as needed to make your deal happen before somebody else does the same. This, of course, is assuming that you have done your due diligence and know the deal is as good as it sounds on the surface.
I will contact him, however should I still insist on an inspection of the house. I did a walk through with the seller and on the inside the house looked o.k. Needs carpeting and a new furnace, however I am not a contractor and would hate to be stung with a bad roof or structual damge. Can I assume if the seller says yes and actually goes through with the inspection, do I offer him less than the $35,000 he initialy said and then if need be work my way up to a price?
Thanks for the reply.
wm-pa
Posted by Ron Coultas on April 09, 2002 at 22:51:24:
First thing you need to do is get in contact and get the property under contract with the contingency clause of satisfactory inspection. Then, since you claim no expertise, you should have the inspection performed by a qualified professional. At this time, if you turn up no big surprises, you you can go with the deal. If there are are any surprises you will want to write an addendum requesting the seller to fix the noted items “or” give a repair credit at closing (which the lender will usually be required to be escrowed) “or” adjust the purchase price by an amount that compensate you for the added repairs. If the inspection turns it out as a disaster then your inspection clause is your “weasel” clause i.e. the addendum in this case would request that seller make all repairs and have work inspected by local jurisdiction prior to closing - naturally seller would say no and therefore MUST return any earnest money deposit.
Most importantly is to get it under contract - then the negotiations continue. Good luck