How to renegotiate original contract price with seller

Bird Dogs, Wholesaling
1

Hello out there, I am a newbie wholesaler and I love this forum so I am confident that you guys can help me here!! so here it goes

I’ve located a homeowner in distress
I now have that homeowner under contract with a PSA for a set price
I have filed contract with the court house
I have showed their property to 5 different investors to no avail
I have received feedback that my price is too high
I have went back to homeowner and told them we should drop the price 10k.
Homeowner is distressed and is willing to take 10k less then our PSA.

Now here are my questions.

Do I need to draw a new PSA?
or can we just cross out price and write in new price on the first PSA,
or should I just make a addendum to the first PSA with the new sale price?
and to protect myself do I need to file the new PSA or addendum with the courthouse again or not.
and lastly does it have to be notarized?

How do this work and how must I protect myself?

2

Normally you can’t record anything that is not notarized. You should probably draw up an addendum, notarize and record it. Probably overkill but better to be safe than sorry. Have you already talked to the investors you showed. Will any of them make an offer in writing? Just in case the 10k reduction is not enough to sell this will help negotiate even a lower price if need be. I’d do this first.

Good luck,
donrock

3

First, congrats on the contract!

2nd, why did you record the “contract”?

I would set up a meeting with the seller,
bring a release form and a new PSA form as
well.

Have seller sign new PSA with new price
and have seller sign the release form to
release you from the original contract.

That is probably the way I would go about it.

Also, just a few questions so we can see what
type of deal you got;

-What do you think the house is worth?
-What are the comps?
-How much in repairs?
-What is your contract price?

4

PRETTYGIRL,

I have a few comments. When you have to go back and renegotiate with a Seller, it canbe tricky and often uncomfortable. It’s good that they are motivated enough to accept the price drop. But be careful . . .

Be sure that you have a buyer at that price BEFORE you go back to the seller and ask them to lower their price. It will be twice as frustrating if you still can’t find a buyer at the lower numbers. Then you will have to go back again. Find a qualified buyer that makes a serious offer. Build in your fee, then go back to the seller to get them to adjust their price.

As far as recording the paperwork, there really is no need. The thinking behind recording the contract is to protect yourself if another party goes behind you and makes a different or better offer. Since you recorded the first agreement, your but is covered.

Simply sign an addendum to the contract altering the purchase price. You can notorize it if you want, but that sounds like a lot of unneccessary running around.

Good luck.