i’m in a position where I may have to give a price first. does anybody have any technics they use when encountering this situation? the seller is motivated, yet very stubborn. for those that have been following my other thread, it’s the foreclosure situation where the home is worth around $300k ARV…i’m guessing there is 20-30k worth of repairs, which the seller does not see. anyway, a contractor offered 160k, i’d like to offer 190k and pay no more than 200k.
i’d like to know how i could offer the 190k in such a way that it doesn’t send this hot head off the handle. my thoughts were explaining that i’m offering 190k cash AS IS, which is 30k more than the contractor, a 2 week closing so he can be finished with the whole deal. anyone like to add on to this or spice up the way i can present it?
Ryan, I wonder if you could come straight out and ask the gentleman, what is the least amount that you could accept for this property? You know in your head the top dollar amount that you are willing to pay and what has been offered by the contractor. You could find out his scale of motivation based on his reply. If the sellers price that he is willing to accept is too high, know in advance the problem areas and relay those fix-up costs to him.
Just like door knocking, sometimes it takes those with brass ba*** to ask for the deal, state your reasons for the offer, etc…
If they will not give you the lowest price they would accept tell them your offer, why the offer is what it is and tell them you can give them a 2 week closing if they accept it. Let them know that’s as much as you can pay and if they want to sell NOW for them to call you and leave it at that.
If they are not motivated move on to the next deal.
thanks for the replies. i should be speaking with the seller in the next day or so (i’m on vacation). i was thinking this out and role playing in my mind. if he were to come back with his offer of what he’d like to get, and then i countered saying that i could give $195k (or whatever it might be) if he were to sell the property sub2. for this that means i may* not need a partner, and if I did…it’s still alot less money i’d have to come up with.
does this make sense or would it be a dumb move?
assuming that this is a good move, i would have him deed me over the home, make the missed payments & fees, start making the mortgage payments until i sell it. the wife’s name is on the refinanced mortgage…would this cause me any problem?