Posted by Gary on May 16, 2000 at 24:52:34:
Thanks Soraya. Makes sense. Thanks also for your other posts. Good stuff.
My Classified Ad - Any Trouble Here? - Posted by Gary
Posted by Gary on May 15, 2000 at 12:54:33:
Here’s my ad:
I BUY HOMES at market value
No realtor fees XXX-XXX-XXXX
My real question is, when I state “at market value” and my offer is less than what is pulled from comps because of the condition of the property, existing financing, specific situation, etc…, am I legally and ethically wrong? I don’t believe I am. Market value is defined as what someone is willing to pay for it. What I’m willing may not equate to what comps say. Agree or disagree? By the way, I plan to offer ‘full’ market value in this hot market for L/O deals, less for other kinds of deal. Thoughts?
Re: My Classified Ad - Any Trouble Here? - Posted by Soraya
Posted by Soraya on May 15, 2000 at 22:18:54:
Why not say
“I WILL PAY YOUR FULL ASKING PRICE FOR YOUR HOME IF YOU SELL WITH MY TERMS”
And then adjust your terms enough to equal FMV.
i.e. If they are really outrageous, and FMV for their home is $150,000 and they say OK I want $300,000. Pay my full price.
Say “OK, I’ll give you $500 per month until it is paid in full.”
As long as you mention that you will pay full price as long as they agree to your terms you can’t be sued for false advertising.
Soraya
Re: My Classified Ad - Any Trouble Here? - Posted by Doug Pretorius
Posted by Doug Pretorius on May 15, 2000 at 17:17:33:
I agree with Trump, regarding your thinking too hard about it.
The fact is, your ad doesn’t say market value in cash. Sure you can pay ‘full’ price if they give you acceptable terms. I doubt you’d get any complaint if your offer is less than comps. After all a comp is just that, a comparison, there is no fixed value for any property at any particular time.
Re: My Classified Ad - Any Trouble Here? - Posted by Trump
Posted by Trump on May 15, 2000 at 15:49:17:
Your thinking too hard. How about:I Buy Houses CASH and your phone #.
Re: My Classified Ad - Any Trouble Here? - Posted by Jerry
Posted by Jerry on May 15, 2000 at 13:03:36:
Does your conscience bother you? Is it ethically right? Answering these two questions honestly is my answer to your question.
Re: My Classified Ad - Any Trouble Here? - Posted by Rob FL
Posted by Rob FL on May 16, 2000 at 08:58:40:
You need to be very careful here. Just because you get good terms, doesn’t mean it is always wise to overpay. Each situation is different.
For instance in the example you mentioned above, paying $300,000 for a $150,000 house but with great terms of only $500 a month. I assume this means you will want to hold onto the property forever because you would have to wait a long time before you could sell or refinance and pay off that mortgage.
Not all properties are junkers you can pay all cash for; not all properties are lease option or seller finance candidates; not all properties make a good loan assumption. Each property must be evaluated on its own individual basis.
Re: My Classified Ad - Any Trouble Here? - Posted by Vic
Posted by Vic on May 16, 2000 at 05:52:00:
Before you pay more than FMV, you had better know your exit strategy, even if you do manage to get good terms.
You don’t want to be stuck with a house that you can’t sell & can’t rent for enough to pay the monthly pmt. If you’re not careful, you just might find yourself married to those “wonderful terms” that you negotiated.
So if you do pay more than FMV, be prepared to live with those terms.
Vic