I recieved an e-mail from a man that has a house for sale listed through a realtor, he got my e-mail info from an ad I placed on craigslist. He said in the e-mail that he was asking $10k and reduced to $8k but if i was intrested he would be willing to take $5k for it. Now my problem is, that he is working with a realtor and the home is owned by him he says that he just needs to get the property sold by the end of the year. My question is should I deal with him because of the realtor? and should I still make a lower offer with it being at $5k, and will I still be able to assign the contract since there is no bank envolved?This will be a cash deal. :smile
If you try to get it through a realtor, it’s kind of a lengthy process to explain how to do it. If they can work their way out of the contract with the realtor, then you can. Also, what do the numbers look like (ARV, repairs, etc.)?
The ARV is going to be about $49k-$52k give or take alittle. When I spoke to the realtor he explained to me that this is his friends property and he is an investor and has to many properties on his hands at the moment and needs to sell before the end of the year, So I don’t know how willing he is to end the contract with the realtor…The good thing is the owner has been e-mailing me do you think it would be ok to ask him about getting out of the contract with the realtor? Thanks for your reply :biggrin
At that price the little bit you’d be paying in realtor commissions wont make that much a difference. Just Close the deal if its good and make sense to you
Will I still be able to assign a contract?
I’m sorry. I can’t see what difference the Realtor makes.
You pay the $5k, the seller gives the Realtor his commission out of that.
Make the ability to assign the contract part of your offer. If they don’t like that, for pete’s sake, just give them the $5k to close and then sell the house.
By the way, if a Realtor can’t sell the property when it is listed on the MLS at $10K, what makes you think you can sell it at a profit?
It seems to me that anyone who would pay $10K for the house would have already bought it from the Realtor.
The property is in a low-income area…and it has only been listed since 11/14/2010.
I went to look at the house this evening the house is in a bad area of town alot of rentals…The seller is highly motivated and wants this house off his books by December 31st,2010. It has been listed for a month and no hits! I will tell you why…This home is 758 sq ft it needs a whole new inside! And I mean awhole new inside the bathroom is completely gutted and the second bedroom is missing part of the ceiling and the kitchen floor needs completely replaced. Both front and back doors need replaced what was funny is that the realtor had a lock box on the front of the house and the back door was made-up from a sheet of osb board. Here is the deal he was asking $5k ARV is going to be $28k with a repairs estimate of $20k. Not much room for any type of return. So I am offering the seller $1000.00 with an assignment contract and will sell to my endbuyer for $5000.00.
You’d be surprised how economically you can repair a small house like this. I’ve done some pretty extensive repairs on houses a little bigger than this and not come anywhere near 20k in repairs.
The last ARV you listed was significantly lower than the original one you posted. Why the big difference?
Once I was able to actally do the comps in that area and go off of the other homes in that area that sold in the last six months it was alot lower then what I thought.
Hey Mz Lady,
Go ahead and buy this property.I will help you find a buyer if you do.I think this is a great deal… :beer
If you know anyone that is intrested please let me know! That would be be great!
you should bit lower if the retailer is involved . make it down to 4k and max to 4.5k
I did, that offer went very well in my favor we settled on $2,500.00 awsome Deal! It took a whole day of going back and forth but I did it! Now I just need to find a buyer asap! Anyone have any good Ideas of finding a buyer??My buyers list are just not producing anything…
MZlady
First get liability insurance in the event that when you show the property someone gets hurt.
Second, Secure the home. Have new doors installed or if you know someone like me have them install previously used doors.
Third, Fix the holes in the floor. You really do not want someone suing you because they fell through.
Forth,
These items being done. Flyer the neighborhood three blocks in all directions. With House for sale. 3,4,5 thousand down. Owner will carry with 4 month moratorium of paymentso of 2,3,4,5, hundred per month. Until home is livable and all repairs made at buyers expence. Owner will retain 3,000 non refundable buyers deposit all other tobe returned.
Something like that. But with your lawyers approval
Just so you know
I watched my father do Real Estate transactions all the time he made a big mistake and only once when it wiped him out. His insurance expred on tuesday. Close was on friday. The apartments burned on wednesday. End of story.