Ok, so I have a buyers list and an ad out there on craigslist. All good because I have calls coming in from both sellers and buyers. My question though is when I get all of the information on the house and then tell the seller “I’m going to check this out and I’ll give you a call back”, what do I say to them if I find out it’s not a deal? Do I call them back or just focus my attention on the deals? I feel kinda awkward telling them I’ll call them back and then they never hear from me again. What do you guys do?
Also, I had a guy call me today that said his house was listed with a realtor. I know you can assign using a realtor, but I’m not comfortable with it because from my understanding, it’s a little different because some of them will not allow you to assign, you have to deal with who pays their commission, etc…not ready for all of that yet. I want to concentrate on FSBOs my first few deals. What do I tell him? (according to the numbers, it’s not a deal anyway).
My mom has an answer to this question - if you ever tell someone that you are going to do something, than do it… :O)
Another option would be for you to ask the potential buyer - do you want me to call you back even if it is not a deal?
Why don’t tell him that it is not a deal! You don’t need to get into the discussion that you don’t want to work with a realtor, etc… etc… Simply tell him that you don’t feel the numbers are working for you…
Ok, I’m having trouble working the numbers here. I’m confused about the whole ARV, Comps, Fair Market Value, Tax Assessed Value, last purchase price, etc…too many values, lol. I know what they all are, but how do I find them and what numbers should I be using? I’ve been going to a few free sites, but I’ve heard that they’re not accurate. What’s a chicky to do?
ARV - After Repair Value - this is the expected value of the property after it has been fixed/rehabbed. In my mind this should be the same number as Fair Market Value.
Comps - this is the value of the property based on recent sales of similar properties in the area.
Fair Market Value - this is the estimate of how much the property is worth if it was to be sold in the open market to a retail buyer (not an investor). This is usually based on the Comps.
Tax Assessed Value - this is the value that the Tax Assessor in the County where the property is located attributes to the property. I believe that in most cases this number has no connection with actual property value. For my home, the tax assessed value is lower than Fair Market Value.
Last Purchase Price - this is the price paid by the current owner when he bought the property.
One price (and probably the most important) you forgot to ask about is the Maximum Price you are willing to pay for the property. This is a price that you calculate based on your exit strategy, repairs, holding costs, profit margin, etc. Typically the maximum price will be lower than any of the other prices… :O)
j1dias-Thanks for your responses! I have another question though. Is assignment any different if the seller has a realtor? I have TONS of deals in my area, but they’re mostly all listed with realtors. Is that an issue? What’s the process? Do I just make sure that they’ll allow assignments?
wholesalerei - please understand that I am a newbie (yet to complete my first deal). I get a little bit nervous when people ask me questions - I don’t want you to think that I am sharing from my experience… :O)
having said that - There is a thread in this forum (actually few lines below your thread) that deals with your question… Here is a link… (there was a lot of discussion around this exact issue).
Oh, that’s quite alright. You gave me some good information. I read that post before about the seller having a realtor, but I didn’t get much information about it until after I revisited it and read it again. There are a few different subjects on that thread and I kinda got lost at first. Thanks for providing the link :cool
Thanks a bunch!