I am new to RE, but I think I came across a good deal.
Market value of the property is K 240. Seller asking K 209. He is flexible with the closing date. House is vacant. I would like to list it and flip it. How is this done?
I have a ratified contract with the owner, but I don’t want to buy it. I just want to make some money on it. I know a RE agent that can list it for free.
Do I need to let the title Co. know how the deal is going to work out?
I need advise.
Thanks
Howdy Conrad:
If you call sell it fast for $240,000 it would be a great deal. What is the condition of the property and more important what are the market conditions in your area? What motovates the seller to sell $30,000 below market? If it can sell fast at your $240,000 why he he not selling for that? Check comps to find how fast they sold and that will help give you an idea of how fast yours will sell. Is the seller OK with you relisting the house and flipping it?
As far as the title company it would be a good idea to let them know your plans. although they do not actually have to know. Getting them involved at the start will make it easier for a double closing and they will be easier to work with. They will find out eventually what your plans are either from the seller or other agents etc. How much earnest money have you put up and when does it become at risk? You will have some risk involved and you should calculate that risk by knowing the market as good as you can. If there are a lot of Huds and foreclosures driving your value down and a lot of property on the market taking a year to sell you will not be successful trying to sell an over valued property. If you are in a hot market you may get full price in hours even and get all cash in 48 hours. Hope this helps a bit.
Good luck and thank you,
Ted P. Stokely Jr
Ted,
I know I can sell fast. I am in the Northern Virginia area, and the home prices in this area along with Hawaii, Nevada, RI and CA have increased the most during the past 12 months. The comps show a similar property with an extra bedroom for $ 260,000. They are selling fast. The property is in a very good condition. There is only a few tiles that need to be replaced in the kitchen, and the tub in the master bedroom needs to be recaulk. I guess the seller is motivated to sell at this price because he wants to avoid dealing with an agent and I am more than glad to do the deal. He is ok with me flipping, he just wants the settle to be fast.
Thanks for the advise