Re: Seller needs more than I’m willing to pay - Posted by Charles Parrish
Posted by Charles Parrish on April 04, 2006 at 07:38:20:
Try making an “Hybrid Offer” Offer the seller a much lower price, but offer to give the seller X percent of any amount over that price. You take the risk of renovating, carrying cost and re-sale. Oh, that percent could be 50/50. 60/40, 80/20, but the agreement is that it is NET of any amount over contract price.
Next: Don’t go to settlment. Get the offer accepted subject to right of possession and right to re-market the property before settlement. When the property is ready, have a reserve public auction, flip the property, take your share of the profit, the seller will get his, the agent will earn their fee and the buyer should be thrilled to have a nice clean renovated house.
Make sure you negotiate with the auctioneer, you should ask for a referral fee.