Suggestions on this deal - Posted by Batman

Posted by Rich-CA on May 26, 2007 at 12:30:56:

Ever been to a Timeshare presentation? There is a reason that married couples must BOTH attend. This is that reason. The two of them either do not communicate OR they are playing “good cop, bad cop” to get the price where they want it. Sit down with both together and go over everything, including your numbers. Then - looking each in the eye in turn - ask if they are interested (do not use your 190k offer price, go back to your original offer and explain that you are starting over because of the different responses you are getting from each of them). Or don’t waste any more time and walk. I really think you need to get husband and wife in the same room at the same time to do this.

Suggestions on this deal - Posted by Batman

Posted by Batman on May 25, 2007 at 23:32:11:

I made an offer to a seller who is leaving town at the end of June. He doesn’t want to sell the house conventionally because his wife is disabled and he doesn’t want buyers going in and out of the house. Here are the specifics:

House: 3bd, 2.5ba, 2-car garage, built in 1996

ARV - $260K
Seller owes - $136K
Repairs - $8K (Carpet, landscaping, some paint, update countertops)
Asking Price - $210K

I left two offers with him because his wife is very sick was not readily available:

$180K cash
$190K - $160K cash upfront and $30K when I sell the house

The seller’s wife has a real estate background, so she took over the negotiations when I followed up by phone. She told me that they would only accept $200K cash because they are buying a new house in their new location and need to make the new house convenient for her to get around, to which I responded that I’d have to think about it (I did follow-up with an offer of $190K, which was declined). My response probably wasn’t a good one; I guess I wasn’t prepared for them to counter at that high a number, considering the fact that the husband asked for what docs I would need to close after I left the first two offers with them. The fact that they had to think the offers over in the first place should have been a clue.

I thought about wholesaling the house as an exit, but there isn’t much, if any, room to do that.

Any suggestions, or should I just “Next” this deal?


Re: Suggestions on this deal - Posted by Rich-CA

Posted by Rich-CA on May 26, 2007 at 12:02:28:

Just let them know that this is not a primary residence for you and that if the numbers don’t leave you with a profit, the you will move on. Good luck finding a buyer. Honesty and placing your position on the table really helps them evaluate their options in a realistic light. If you know they’ve been looking for a buyer for a while, remind them that without a listing, it may be a while before they see another offer.

Re: Suggestions on this deal - Posted by Batman

Posted by Batman on May 26, 2007 at 12:26:37:

Yes, I told the husband when I first sat down with him that I had no plans of moving into the home and that it was strictly an investment. I also mentioned that the deal would have to work for both sides before we could proceed. I’ll need to test their desire to sell a bit more and just walk away if I have to. Thanks Rich.