Re: My first deal - did I forget something ??? - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on March 07, 2002 at 03:23:25:
Just off the top of my head, verify all your numbers.
Is it really only $2k to bring up to full market value? Have you did an area comps on this house to make sure it really is worth $250k? If your numbers are right, and you have 40 days to close; I would be looking to snatch that baby up!
Even if you bought it with your own financing, you are looking at only 70% of full market value. It’s not that hard to put an ad in the paper, after you get it under contract,
! Beautiful Home !
x bed / x baths
Need to close by
April 10th, 2002
$250k or Best Offer!
Bring All Offers
I need to sell now!
Accept any offer that makes you some money, close to the mark. Be negotiable, very negotiable on price. But be VERY STRICT on contingencies. I would only give 3 days for any contingencies and that would include financing. Get a good earnest money up front. If they need longer, tell them these are your conditions and it is the first one with the money you need, gets the house. Tell them to come back if they can meet these conditions, but the house stays on the market until you get someone pre-approved and ready to close.
You don’t want the guy with full offer of $250k, close by April 10th, but wants 30 days to see if he can get financing. You want the guy who says I am pre-approved and I can inspect tomorrow and here’s $5k earnest money, but I can only give you $220k. No problem, you wanted $220k.
Work with the price, as you have lots of profit. Work with the earnest money so you are covered for your expenses if you can’t get the deal to close and you are out. Remember, any serious buyer that is looking for a house is going to have a few $K for their down payment, so it is available to them. But don’t give too many days for any contingencies as it will cut down on when you have to close. If earnest money is on the line with no contingencies, the buyers are going to make sure they close so they are not out their money.
Review your contract documents and make sure you understand them. There is no deal until you get it signed by both sellers. Verify all your numbers, or the deal may not be what you think. Pay the extra for the bold ad with a few extra lines; you want to stand out as desperate to sell. Put the cell phone as the number to call you on and pick it up when it rings. If you don’t have a cell phone, go get one so you have this available for the ad. You want someone thinking about it to call you and get you right now. If an agent says will you work with them, say yes, but you need pre-approved buyers and they need to close by April 10th. Tell them you will give them $5k if they can make it happen, you don’t work on percentages.
Now, that’s just me, your milage may vary.