I’ve had a few conversations with a FSBO, however, I’m not getting to far with the negotiation. He is stuck with his price and I’m actually fine with that because I know he will sit on it for a while.
Do you have some insight in begingin price negoation with FSBO? I realize sometimes it is very personal to point out all the flaws with the property, but it is my money and don’t want to be in their shoes. Any insight?
Well, first of all you need to realize that not every FSBO is a deal and not every FSBO is a motivated seller. If they are listing to save on commission and don’t mind waiting, then it is not something I would spend my time on and I would probably contact them again weekly to see how things are going.
If the FSBO was an expired listing, or in need of repairs, then it has higher potential. Make him an offer and check back with them weekly.
I would approach a FSBO as I would any other possible deal. Call them and find out if they are motivated. If so, continue talking, if not, move on.
Well, as of 7:43 this morning, the seller called back and accepted my offer for $17,000 (70%) less than his asking price. Now I just have to decide how I want to purchase it and add some clauses just in case I missed something. Any thoughts?
We Need more info about the deal. But it sounds like you figured out how to deal with the FSBO…or rather it sounds like the FSBO had a light click on if they dropped 70%. GJ!
You said “how I want to purchase it”, are you prepared if he wants cash?
herbster
PS one reason a FSBO doesn’t list is because they’re cheap.
I can do cash if he wants it, however, he needs to clean all the memories out of the house. This was his parents estate, so that will buy me time. I just need to justify if I want to spend $1,500 in closing costs (to use other people’s money).
How did you come up with your offer? You should always know your exit before making an offer and base your offer on your exit.
Would this house be a good deal for landlords? can you wholesale it to a landlord?
How much does he owe on the house? is he willing to accept payments vs all cash?
$17k spread is not a lot of money, more than half of it could easily be spent on repairs, holding costs, and fees so do your numbers first.
I have 3 exits. 1) A prequalified buyer from a realtor that I have been working with…even though I won’t make as much with this person due to paying for closing costs, I have it almost guaranteed sold. 2) Sell it on the mls…a lot more profit potential but have the possibility of more holding costs. 3) Hold and rent (I am not excited about this option if I can make a quick 10,000 after repairs).
I really don’t know who to wholesale to, but if I knew someone I could wholesale I would.
Ever think about lease option or land contract?
I would but I’m not that familiar with the steps or process. Can you offer any help?
Search each topic on this forum first then go to your local library and read a book for free.
Neither are that dificult, you could buy a book, but do the reading and ask questions here.
I’m sure you’ll get a lot help.
herbster
PS final step, get a lawyer to draft you up either.