I was told that homes listed on the MLS sell for an average of 97% of the asking price in my area by a realtor[ i saw the printup]. Being that this is the case why would anyone with less than 80/85% equity call our signs & not sell with a realtor. [ aside from the fact that they won’t have to wait 3 months for it to sell]
Now i am not knocking the sub2 method at all or saying it won’t work, this will be one of my key buying methods. I am discouraged though because my signs are bringing in calls from MANY people with no equity. I now think i see why, they can get what they ask for by listing if they want to wait a few months for it to sell.
I love talking to those that respond to my signs but hate that no equity is there for me to take advantage of.
Any words of inspiration given would be greatly appreciated.
A large amount of agents don’t want to find homes for Investors anymore due to all the games they go through - from individuals attempting to coerce sellers out of their listings (tortious interference - large court battle brought by TREC…being the Texas Real Estate Commission).
Realtor’s, such as myself, get EXTREMELY frustrated with those Investors who say they “can close in 2 weeks or less” and make us look like @^#!! at the Title office when they don’t have the funds to back it up, aren’t qualified for squat, and the deal doesn’t close! It’s us agents who get the nasty whiplash from those Investors who waste our time. Unilke these non-legal bird dogs, we don’t get paid if the sale doesn’t close!
The fees to even be an agent appears to be from $15,000 to $30,000 a year to pay the broker they represent just to be a Realtor. So, deals need to close, and those that are serious and can actually “close” are worth our time and efforts!
Homes with equity in a targeted area take professionals trained to search for them within our network one-to-two weeks to locate a $20K below market deal (lease option resale means $25K below market) for homes under $200K. The higher percentages come from forclosures with lots of work to be done, which rarely bring you back up to the $20K-$25K cushion jsut simply purchasing a home through a licensed agent. Why not purchase directly through agents who know what they are doing and how to do it to proect both you and the seller in a transaction?
Again, these home are findable - that is, if you have an agent who knows what to look for and has done it for years! I buy these myself and assist others who really ARE qualified and “ready” to purchase in areas for which I typically do not purchase the homes for myself or have too many on the market in a lease-option situation.
So, if you buy them with the fees paid by the seller within the real estate network - equity is NOT hard to find…just find a good agent in your area of Texas and treat them to a lunch now and again…Linda
P.S. One of my latest deals for a client in a fabulous location for lease options set to close by Thanksgiving: Purchase after seller contribution is around 117 - resale is 140K, lease option resale (which is what she will be doing) is 145 - 149k based on “future” value worknig with bad credit lease optionees. She has a good cushion of at least $25K!