Psst... Read this! Need some advice. - Posted by Katie

Posted by Joe-Ga on March 22, 2006 at 22:37:06:

are you acting as a non licensed realtor?
Why would you not have a contract with Mr.seller that if you bring him a buyer he will pay you $3k?
or Put the house under contract to purchase or see if he will allow you to sign an option for 30 days?? I dont see where you are coming from other than a non licensed realtor wanting to make a quick buck with no real meaning.

Psst… Read this! Need some advice. - Posted by Katie

Posted by Katie on March 03, 2006 at 19:04:09:

Hi everyone,

I am a newbie and I’m doing a “rent to own” and I have a house under contract with my seller. The seller explained that he wants $7,000 down that’s 1st mth rent plus 2mths sec. dep. The asking for this house is $295,000 and it’s new construction. No one has occuppied this house in over a year.

Recently I placed my ad in the newspaper and received many calls and told them what the seller required plus my interest that I’m selling in the property. Many drove by to see the home but many have said that’s asking too much for that house and it’s not that big in square footage. So that was six people that I lost. And most just didn’t call me back.

So how can I negoiate and get the seller to drop the 2nd sec.dep. and take the $3600 down and accept the non-refundable money which he will get every month. He’s not losing anything and many of my buyers want to buy this house but the seller greed glands are on fire and it’s not leaving me enough room to make money on this deal as well.

Asking Price: $295k
Monthly: $1800
Could he accept 1mths rent$1800+1mth sec. dep.$1800 = $3600

What can I do and say to persuade him to do this and come into agreement with me because I have many buyers with the money right now and available to pay him. But one couple are ready to meet him on This coming monday to make a deal. I don’t want to lose my buyers. Please Help.

Thank you

Re: Psst… Read this! Need some advice. - Posted by Mathew

Posted by Mathew on March 08, 2006 at 06:59:26:

This is the land of opportunity. The seller sounds like he has been down this road b4 and he is not limiting his options- you just have to make a stand- get the deal or find another one that you can use with your buyers. This business is all about the numbers.

Re: Psst… Read this! Need some advice. - Posted by greg

Posted by greg on March 04, 2006 at 11:04:22:

How much are you asking for as your interest to sell the deal to a ne wbuyer… You may have divulged too much to the buyers.They know you are not the owner and are reluctant to pay you for your interest. Be careful some may go behind your back…just a warning…

But what are prices of comparable props with comparable square footage. Are they selling for $295k, more or less?, Is the sellers price overpriced?

If it is not, and you are not overpriced with your payment for your beneficial interest, you may want to walk away from the deal if you have not committed any funds to the deal…

Another salvaation could be to lease option to new byuyers and raise the price, 2 -3 years out, 5% price increase per year based on comparable appraised values of similar props…

Best I can do with limited info…

Re: Psst… Read this! Need some advice. - Posted by Katie

Posted by Katie on March 04, 2006 at 12:54:12:

Hi Greg,
Thank-you for your response. the asking is $295,000 with comps comparable in the neighborhood. The homes in this neighborhood run from $270,000 -$310,000. And I’m asking for a small fee of $3k and sign my interest over to my buyers so they could step into my place and I can move on to another deal.

And besides that, my contract is binding with the seller which allows him to use my services for free and it also states that if he finds a buyer before i do and make a sale, then our contract is null and void. As for my buyers they wouldn’t have the information to contact the seller they would have to get it from me and I have buyers to sign my contract once an agreement is made between me, the seller and my buyers. So again I thank-you for your input in this matter.

p.s. The home is 2900 sq. ft. 4bd, 2.5ba, 2 car.