I’ve low-balled both of them and was flat-out rejected.
But the one I visited today has potential and I want to make it work.
The wife passed away, 3BD/2BA house has to be split between father and 3 sons.
It needs about $20-25k in updating overall (update 2 baths, kitchen, sheetrock/paint interior house, remove all debris).
It can sell in this market EASILY for about $225k within 10 days. Maybe it will sell for more, around $250k, but I’m being conservative.
He really wants to get rid of the house and initially was asking $235k for it. I offered $120k, I know it’s a lowball, but I thought he would meet at least me half way but he came back at $200k.
Then he ended the call.
Now my question is… what type of negotiations work with Probate leads?? The house is being split between a few heirs and everyone seems to want the maximum amount for the house.
So in what scenarios are they willing to let it go at a deep discount??
im a newbie as well and i called motivated seller leads for a Lease-Purchase flip. it took me 3 months and about 75 offers to finally close my first deal. it’s a numbers game, plain and simple. you’re not dealing with a motivated seller so move on to the next one.
from that 1st deal with my $5400 profit i bought a 3/1 SFH 1031sf REO for $3300. $20K in repairs, on the market since Aug last year, ARV $60K. in contract now with a rehabber for $10500. total time in deal was 15 days, but i had my buyer in place already. i will make an easy $7200 and my guy is gonna make a nice $20,000 profit. i had no marketing expenses, no driving around town posting bandit signs, i made 12 calls on REO’s and the 12th call on the 4th day my offer was accepted. there’s no emotion dealing with the banks, it’s either a rejection or a counter offer. this suits my personality, simple and direct. i hated trying to convince Mrs Smith to lower the price on the house she’s lived in for 30 years.
I work probate leads from time to time and bought from an estate last year.
Generally they will let it go at a discount when a combination of one or more of the following factors exist: 1) They don’t want the property 2)the property can’t be sold on the open market usually because it needs so much repair the general public can’t get a mortgage on it 3) They are out of state and it’s too much trouble dealing with 4) several heirs are squabbling over it/pressuring the executor to sell 4) its starting to cost them money (taxes, mortgage, insurance, utilities). And there are probably many more reasons I haven’t thought of.
Is any money owed on it? If there is they will expect your offer to cover what’s owed plus some cash for them.
If it’s free and clear it’s a lot easier to get a good deal. You can work in owner financing on paid off houses. Offer a mid-price with owner financing. If they won’t OF, then come back with a low-ball cash offer.
I would avoid a grieving spouse, they aren’t going to be rational for quite awhile. Ideally deal with the executor.
Provide a CMA and a list of repairs you’re going to have to do with your offer.
You can also offer more on the initial offer and renegotiate after the inspection to include a smaller price due to the large number of defects.
If it’s already been deeded to the heirs, get a Title company to open title to make sure you’re dealing with all the heirs and that they don’t have any liens against them.
If orginally rejected, resend your offer again when taxes are due.
What does ARV look like? Maybe you should ask him “If I paid Cash today, what is the lowest you will take?”, get their answer, then ask “Is that the best you can do?”. (Maybe you already asked that?)
I woulda offered $137k for the house (which is what house would at 65% ARV if ARV was $250k), and sent it to his fax, email or mailing adderss with somehthing telling him that if they decide to change their mind & accept your offer later down the road, that the offer will still stand (or something like that). Is the house in that bad of shape, that you can’t do a L/O on it the way it is?
