do you think it’ a waste of time to see a house that is listed at retail price but you think you can get it lowered. maybe not to wholesale price but at a price that will make you happy. situation…house has been on the market for 6 mos, in a low income neighborhood. i drive by it and see it needs works from the outside anyway. the guy (who also confirmed that he’s a realtor), listed that it had all this new stuff. long story short - i go see it and it is a mess. not enogh time to write it all but the best parts were ceiling falling in and the used condums all over the place, oh yeah and the hole in the bathroom floor. anyway is it a waste of time to entertain the idea that this guy who is asking 50k(retail) would accept a lowball offer taking into consideration he’s been holding for 6 mos.?
I guarantee that the owner will not accept an offer that is NEVER presented.
No, I don’t think it is a waste of time.
Are you working with your own realtor? If not, you should…
There are a ton of folks in this forum that do this all the time – they have formulas that they use to determine what they will offer.
Make an offer (make it low) – the owner will accept it, reject it, or make a counter offer…ask for the moon – you never know what the owner will take unless you ask. Reserve the right to be present when the Owner’s Realtor presents the offer. That way, the Realtor will tend to be less negative and you can explain you numbers, if need be.
If it has been on the market for 6 months, there is a good chance that the owner may be sick of it and want it off his/her hands. It also sounds like it is vacant – meaning the owner either owns it outright (probable) or that it is an alligator eating out of his hip pocket.
Like KD said you never know. They may owe $50,000 and can not sell for less or may jump at a $25,000 offer. I offered $10,000 once on a duplex that was listed at $20,000 and they took it leaving me to believe I could have gotten it for less. I saw a dirt bike at a garage sale once and was going to offer $100 less than the $500 asking price and told the lady after talking to my son that my son was going to be my partner in the bike and that he would pay half. She said Ok but $250 was their bottom dollar. I just bought a bike for $150 less than I was going to offer.
It may be easier just to call the Realtor and discuss what you propose. Even thought they are not supposed to some will discuss previous offers and what the seller really wants to sell the property for. Just yesterday I learned that the bank priced a 4 plex at $34,900 and would take $30,000 and maybe even a few grand lower if it were all cash and a fast close. They had had the meters replaced on the gas and electric service and I assumed that someone had already bought the place and the sign was old. Never assume anything in this business. You will not be wasting your time at all. You will be learning how deals work. This is the best part of doing deals. I love to offer low. Bring up all the work the property needs and how afraid you are that it will take months to find a tenant. All this is great ammunition for a lowball offer.
Go for it LOL
thanks everyone, i needed to here that. i was talking to a friend and he kind of offended me by telling me that i wasted my time by even going to see the property. i explained how it had been on the market for 6 months and was trashed. the owner blatantly said that he was tired of renting it. but he was asking for retail on a house that needed at least 5k work. my friend said i’m living in lala land if i think someone will sell there house for half it’s worth. i disagreed, it depends on how desperate they want out. and if anything it is never a waste of time it is a learning experience! gotta stay away from negetive thinking people >:(
mesha, i don’t think its a waste of time at all. i work with a builder who’s selling new houses slightly below appraisal and thats on new houses.
people walk away from thousands in equity every day. the longer its been sitting vacant, the more motivated the owner will be.