Posted by Debra(SC) on January 14, 2000 at 19:08:02:
and I’m usually the one catching all the spelling mistakes (hee-hee)
OH NO! - Made and offer and seller took over the conversation…(long) - Posted by Debra(SC)
Posted by Debra(SC) on January 14, 2000 at 16:35:08:
To those who had been following my cries for help on this newsgroup, you may remember I had several offers to make to different sellers.
I finally got the nerve to make an offer on a small, wood frame house that needs approx. $4-5,000 worth of repairs. The owner has really tried to inflate the appeal of this house. I really is one for wholesaling, but he almost acts like it’s a beauty of a house. Anyway, he said it would easily sell and was worth about $50,000. I find that hard to believe. It is only a 2/1 house, although it is on a big corner lot. The area is decent, but all the houses on that street (which is only 3-4 blocks long) are small and/or wood frame - some are brick.
When I talked to him, he took over the conversation and told ME what we would do after I told him I would offer an option to buy the house. He understood just what I meant and was very eager to do whatever it would take because he “just wants to sell this house.” He’ll do whatever it takes except accept less $$ for it. He wants $500.00 earnest $$ from me (which I don’t have), he will sell it for cast at $33,000 (down from 40,000 originally, then 35,000 the 2nd time I talked to him). He says I should only need 30 days to sell the house. He even offered owner financing. He had no problems with me making some $$ on the deal. Even mentioned I could buy it from him and rent it out. That’s how he did and now he has made enought $$ that he is retired now. What a character.
Maybe I didn’t handle this right. I seem taken advantage of. He wants me to send him the contract, along with the $500.00, which is refundable if I don’t sell and/or buy it.
I said I’ll get something to him.
Question - can I counter-offer by using my contract or do I have to write up a contract according to what is said on the phone (oral agreement). I didn’t tell him I agreed to anything, just that I would get something to him, meaning, a lower price offer.
Please help. Sorry this is so long, but this is my first EVER offer and it started out wrong. I know I should have been the one directing the conversation, not him. How should I write this up - if I should even send a contract at all?
Debra
more info…? - Posted by steph in tex
Posted by steph in tex on January 15, 2000 at 10:51:54:
so he says he’ll take 33K cash?
he’s come down quite a bit right?
what are comps?
50K? are you sure? how long do properties typically
sit? what are the repairs?
i think there might be a deal here. he seem flexible to me. you may just be hearing your own voice inside that may still be alittle scared. think this one through… i think you may be able to work this one out.
from what you’ve told us, i’d be a happy camper…
i like to let the sellers think they’re in control…
they like it to…
just keep talking…what are his needs? not wants…
you can do this! if he’s down to 33K–he’ll come down to 30K easy–and more if you play this right! DO IT!!
and remember–
even if you lose this deal-- think of everything you will have learned! this is your education!! you will learn to much from this to walk away without more negotiation. Have fun with it!
good luck!
steph in tex
Re: OH NO! - what offer? - Posted by DOMINEAUX
Posted by DOMINEAUX on January 15, 2000 at 07:55:23:
Fun, fun, fun, tat is what makes this a great business. I love to meet those types of people, they have more tricks in the bag than my uncle Louis. I couldn’t wait for him dig back down into his bag everytime. Something new and delightful came out.
While your uncle Louis seller was digging in his bag of tricks (and offers to sell for exorbitant amount) I think it would be wise to ask to see his driver’s license or some type of photo ID. You not even be talking to a legitmate seller (one that owns the property.
Have a great day, I hope you don’t run across my uncle Louis.
The Seller’s Motivation?? - Posted by Emmett-NC
Posted by Emmett-NC on January 15, 2000 at 01:08:01:
Debra,
This seller either doesn’t sound too motivated or he knows you are inexperienced and trying taking advantage of that. Last March, when I was first starting out, I went to look at a house owned by a Broker/Owner. Well he tried to sell me on “It was a great rental”, “I don’t need to sell, it rents great”. Basically trying to unload it on me. But I saw there was something wrong with the house. He had it advertised as a 3 BR, but that 3rd BR was actually a den. It is still being marketed in the paper to this day. So I hope he is not trying to unload this house on ya.
Earnest deposit… sure you will pay it… only say your attorney will hold it in escrow. Don’t give him a DIME!
Well thats my 0.02. Hope it helps!
Emmett-NC
Re: OH NO! - Made and offer and seller took over the conversation…(long) - Posted by phil fernandez
Posted by phil fernandez on January 14, 2000 at 17:39:17:
Debra,
Keep in mind that YOU are in control. Your seller does not have a sale without you. Start by making an offer that you feel comfortable with, meaning a low price with terms to your advantage.
Do not rely on the seller’s statements like " you can sell it in a month. " How long has he been trying to unload the property. Sellers often inflate the value and try to sell potential. I tell sellers " that I buy performance, I don’t buy potential.
It sounds like you have only talked to this seller and have not mada a written offer yet. Put your offer in writing that will make you money, not make the seller feel good. You are representing YOU.
Good luck and don’t be intimidated. All the seller can say is no. Hey he might even get mad. So what.
I like to test the seller’s motivation by initially making a lowish type of offer with liberal terms. Also mention to the seller that you are looking at similar houses. You have many properties to choose from. The seller just has one property to sell. I’d say you are in the driver’s seat. Good luck.
Only do what YOU want - Posted by Blane (MI)
Posted by Blane (MI) on January 14, 2000 at 17:37:18:
Listen to GL, relax. You can write up the contract any way you want, what was said before is irrelevant. If it’s worth 50K, and he’ll only sell for 50K, where’s your profit? Him saying it will easily sell means nothing. Just from what I’ve learned on this board, get comps in the area, decide the maximum you’re willing to do, and only negotiate UP toward that. You don’t owe him anything, and again as GL said, don’t worry about walking away. To be successful, we’re going to have to be able to handle rejection and disappointment, be it stick homes or MH’s.
Good luck and keep us posted.
Blane (MI)
Relax. You are in charge. - Posted by GL
Posted by GL on January 14, 2000 at 17:16:53:
Remember that at all times LOL.
You don’t have to do anything. Not until you have and offer and an acceptance ( that’s a contract).
Then you have to do what you promised to do. So be very careful what you promise.
If you feel pushed around and manipulated, stop. Don’t sign or agree to anything. If necessary drop the whole thing.
Or, figure out what you want to do ( you are still in charge of you, remember?) and make an offer accordingly.
If you fear getting in too deep on your first deal it may be best to drop the whole thing.
A good way to do that is to write up a totally one sided deal in your favor, with everything in it you want, and let him reject it. You might be surprised if he takes it LOL.
Get used to losing a deal. That is one of the untold secrets of success. The way you get all good deals, is by not taking the bad deals. Be hard boiled, don’t accept anything but a good deal. Be ready to walk away. I know it is Un American to lose LOL but you can do it.
Spelling Alert-Not until you have and offer should be not until you have AN offer LOL - Posted by GL
Posted by GL on January 14, 2000 at 17:21:32:
OK?