OK here’s the deal: got a vacant, pretty house in the outer DC suburbs that I’m about to L/O. Worth about $495K, the guy owes $385K and doesn’t want any money. Here are my questions:
It’s been listed for almost 12 months and didn’t sell; can the seller simply call the agent and cancel the listing?
Do I order title after getting the agreement signed?
What kind of deposit/earnest money should I expect to get?
This is a 6-bdrm house, 3200 sq ft…how on earth am I supposed to survey market rents for a property this big? I’m pretty sure it’ll cashflow (underlying payment is $2,450 piti) but how do I know what to charge my T/B per month?
It's been listed for almost 12 months and didn't sell; can the seller simply call the agent and cancel the listing?
Yes. The homeowner can cancel their listing agreement. He needs to contact his Realtor.
Do I order title after getting the agreement signed?
After you sign off on the deal is too late. Order a title search before, if you want to. By the way, somewhere in your Agreement with the seller needs to be a clause dealing with receiving a clean and marketable title.
What kind of deposit/earnest money should I expect to get?
Lots of variables, which makes it difficult to quote a figure.
This is a 6-bdrm house, 3200 sq ft...how on earth am I supposed to survey market rents for a property this big? I'm pretty sure it'll cashflow (underlying payment is $2,450 piti) but how do I know what to charge my T/B per month?
You'll need to do a rental analysis to see where the market is for this property.
Hello,
How much is the home listed for ? I may want to purchase it. Let’s talk, see if we can make this profitable for all involved, Thanks for your time, Darin
The seller has dropped the price from the high $4s all the way down to $405k, but he just wants the payments off his back so he will sell it for what he owes on it, which is $385K. Zillow has the value at $493K! Killer deal. I already ordered title which should be back within the next couple of days. I’d be MORE than happy to wholesale this deal to you.
Speedy Word/AJ290, thanks for your feedback!
Do not accept Zillow’s value as Gospel. They are notorious for being way off with their valuation estimates. You’ll need to do a much more professional job of determing FMV than going to a freebie website. It’s your money, after all.
I’m in the DC market and had to drop my price byover $100K in order to sell a beautiful 6500 sq ft home. The market here is always very active, but currently going thru a huge slowdown. If the house didn’t sell in 12 months, it’s overpriced and a house is only worth it’s market value. Ask him to get you the comps for the last 12 months which he can get from his Realtor or any Realtor for free. He should have them if he’s been trying to sell for a year. Make sure you do a HOME INSPECTION AND A TITLE SEARCH BEFORE DOING ANYTHING ELSE. A lot of people in this area have seconds and thirds. On the plus side, you can get $2500 in rent for a SF home in this area fairly easily and Contractor’s prices have come down a lot in case it needs any work.
Thanks Archie,
On the market for a year means over priced, If its any where near 400k he will sell soon. Have you signed a deal yet. How did you structure it. Think Sub2… Iam still interested depending on how you wrote the offer. I will need three realtors #'s from the area also. If you can supply their numbers that would be helpful. If not I can locate#'s myself. Good luck and thanks for your time. I will have some one in the area till Monday If you and I can connect soon. Darin