Posted by Don (Tn) on April 03, 2006 at 23:00:51:
Dev,
Be thankful that they did’nt even look at your offer! At best you would have 180k in a house that wouldl sell for 210k at best. Will you have to pay a realtors commission when selling? (12k) What about unforseen problems in renovation? Carrying costs? Closing costs? A far too slim margin for me!
Don
Seller needs more than I’m willing to pay - Posted by Dev
Posted by Dev on April 03, 2006 at 22:37:44:
My agent showed me a vacant house where they’re asking $189k. Needs about $20k to spruce it up and bring it to a move in condition. I offered $160k, $1k more than they paid, as I think the property would be worth $200-210k after the renovations. The seller’s agent said that the vendor is quite distraught and he wouldn’t come see any offers less than $180k or he’ll lose the house.
Do you think there’s opportunity here or should I just walk away.
Thanks
seller hope - Posted by lukeNC
Posted by lukeNC on April 04, 2006 at 08:03:01:
This is the seller who hopes there’s a sucker out there who’ll buy at their price.
I’d submit the offer, but dont cross your fingers!
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.
Charles Parrish
Auctioneer/Baltimore
Re: Seller needs more than I’m willing to pay - Posted by Eric (MI)
Posted by Eric (MI) on April 03, 2006 at 23:45:51:
I don’t consider myself an expert but I would have to agree with Don here. I think your offer would have to be lower than the $160k you offered and definitely lower than the $180k the agent is saying is the minimum offer he will look at.
I would say keep an eye on it but for now it is a no deal.