Need Help On Contract!!!!

Hi everyone!! I wanted to see if any of you can help with a problem im having with a contract i put in on a house.I put in this contract and now the listing agent called to see when we wanted to close.I said 3 weeks and she said that the owner is going to get charged 12,000 if she sells the house before August.I cant wait till August to close and I dont want to do work in a house I dont own.Is there anything else I could do to make this contract go through without raising my offer and her paying the charge?Thanks for your reply!!!Michlele


I don’t understand why the owner would be charged $12,000 if a sale takes place before August. Can you please explain?

sounds like she has a hard pre-pay on her loan. I would offer to rent the house for $1/mn and ask for a $5k reduction in price in order to close in August.

…and in the lease agreement make sure that all upgrades to the property made during your tenancy can be made at the Tenant’s (your) discretion with no approval by the landlord (seller) necessary…


It is a penalty for paying off the loan early.Here is the deal.She has it listed for 249,000 I put in a contract for 220,000 it needs about 20,000 worth of work.I call sell for 300,000. She said she got a better offer from “Cash for your house” I dont know where im going wrong with my contracts.After i figure all the expence(closing,MLS,fix up,holding)I cant get my price up enough to get a contract.Im I doing something wrong?Please help!!!Thanks,Michele

did she accept your contract? sounds like she got a better offer and wants out. if she signed it, you can enforce performance.

No she didnt except my offer.She doesnt want to close untill August because she will get hit with a 12,000 charge on her morgage.But she said she was offered more from a place that buys houses for cash and they usually give you an offer really low.So it makes me feel like my offer is really low and out there.I keep on putting in contracts on houses and they are not excepted because of the price.But its all about the numbers and if they dont work out that i make a little money on it then its not worth me doing.I just dont know if its my numbers or because im getting the listings off the MLS or what the deal is!!!Thanks,Michele

I hope someone can help tell me what im doing wrong!!!Thanks,Michele

…perhaps you are doing nothing ‘wrong’…perhaps they (the “we buy houses” Bubbas) are overpaying…?

It looks like you are using:

FMV X 80% - fix up costs…

It’s a little thin for some folks here but I could live with it.


You need to offer what the deal is worth TO YOU. Don’t be pressured to raise your offer because someone bid higher. I had that happen to me recently. There was a house 3-2-2 about 1300sqft asking price was $74k. AFV about $95k. Area rents $800/month. I offered $69k they turned me down. A few weeks later the price came down to $64k. I offered $70k. They told me they were in a multiple offer situation and I needed to give my best final offer. When I figure purchase, fix up, and income potential, this house was worth to me $72k tops. I offered $72k. They came back and said they like me (whatever that means) and would sell it to me for $74k. I said that it was worth $70k to me and that the $72k offer was a stretch. My wife said that for a lousy two grand I was going to miss out on the house. The problem is that after I buy it fix it up and get it rented, it was not going to cash flow. I would be at -$25/month. It was not a great deal anyway because at the $72k price it was only going to cash flow about $25/month.

Maybe the other guy can fix it up cheaper than I can, or get tenants to pay more than I can, or perhaps he has bad numbers or it may be an owner occupant. Any way your best price is your best price.

Keith,Thanks for the reply!I try to use the FMV x 70% but it is too low for my area so I go to the FMV x 80% I know its a little thin but im trying to get a contract.Even with the 80% im not getting the contracts.I have put in like 5 contracts in the last couple of weeks and still cant get one.I cant go any higher because im fixing and putting them back on the market.Im not going to do all the hard work and make nothing on it!!Maybe its because im getting the houses off the MLS and then after the work is done putting them back on the MLS.The banks put there foreclosures on the MLS so I cant seem to get anything without going through the MLS.What do you think?Thanks,Michele

Bluemoon,Thanks for the reply!I dont even offer what the house is worth to me.In my area I think houses are over priced.When I put in a contract its all about the numbers.I cant do the work for nothing.Maybe I just need to forget about my area and go to another state.( that would only be 30 min. away) the houses are cheaper and maybe i can get something going there.I dont know.It seems like this is getting harder and harder to make happen.Maybe im not putting in enough contracts.I dont know what the deal is!!! Thanks,Michele

I would consult an attorney…

Thanks Todd!!!