Posted by Jim IL on May 04, 2000 at 16:48:42:
Debbie,
Why was the lender in on the negotiating anyway?
When I talk to sellers, I talk to sellers.
Only those on the title are the ones needed to make a decision.
some sellers will want to “run everything by” an attorney.
In that case I always offer to meet with the attorney myself, AFTER I try to address EVERY issue or concern of the seller(s).
I always ask several times while talking to the sellers, “Are there any other questions you have?”.
Once all the questions/concerns are answered, and the sellers needs are met, the deal is signed.
Whenever a seller makes me jump thru too many hoops, I have ONE answer for them, and that is…NEXT!!
Don’t waste your time on non motivated sellers.
Good luck,
Jim IL
Need Help------FSBO - Posted by Debbie
Posted by Debbie on May 04, 2000 at 13:13:09:
I’m still haunted by a missed opportunity 4 years
ago----and need some help. I like FSBO’s. I like
dealing directly with owners with no broker in the middle. One day while driving around I found a small sign on the lawn. I found a young couple who just needed more space. They owned their home free and clear. It was a lovely one story with a pool and a nice yard. They wanted $145k, which I was willing to pay. They also were willing to work with me on financing. They needed 40-50k to purchase another place and would hold a 2nd for the balance at 1% over their new mortgage rate. My idea was to get a first for 80k and have them hold the balance as a 2nd (no $ down). However, when I proposed the deal to them, with their lender present, the lender
said “you can’t do that, that’s illegal!”. Well I
was crushed…why was it illegal?? Why does this
lenders person have the right to interfere with an
agreement between two people??? The seller became
nervous by what the lender said—illegal is a powerful word. I walked away, not knowing what else I could do…but I’m still haunted by the one that got away. I want to go out and find some more FSBO’s. But don’t want to run into the same situation. How do I swing a deal with a willing seller-----that a lender won’t torpedo??? I want to get the seller the $$ he needs, and yet purchase no $$ down???
Third parties - Posted by B.L.Renfrow
Posted by B.L.Renfrow on May 04, 2000 at 21:51:55:
…no, not the party you go to after leaving the first two!
Like Jim says, third parties have a tendency to wreck a perfectly good deal. If they don’t completely understand what you’re proposing, their answer will automatically be “NO.” Happens every time.
What I will do is ask - before I meet with a seller to negotiate - whether everyone on the title will be present, and whether they will be in a position to make a decision if we come to terms, or if they will need to “consult” anyone else. If they want to run it by their attorney, or Uncle Louie or whomever, I will either request that person be present when we meet, or I will offer to meet separately with the attorney.
But I much prefer to deal with sellers who are prepared to make a decision themselves. If they need to bring too many third parties into the picture, I know they’re not motivated enough and it will be a waste of my time.
And from the data you included, there was nothing “illegal” about your proposal to those sellers…though I don’t understand a lender’s involvement, when you state the sellers owned the property free and clear.
Next time, don’t bring more people to the table than you need to get the job done. If it was the sellers who requested the lender representative be present, I would have probed more thoroughly until I figured out what they were not comfortable with, then I would have addressed that issue directly.
Brian (NY)