Earnest Money
I found a FSBO where the seller is higly motivated the house is in move-in condition and is currently vacant. However, although the seller is motivated he's not being reasonable.
He wants $1,000 - $2,000 earnest money and to close in 7 days.
His orginial asking price was $149,900 and he went down to $147,000. The comps that I pulled average about $142,000 but he contends a realtor told him the house is worth $169,000.
He will not accept subject to or a lease option. My goal is to flip this property to a retail buyer but not sure if there would be any profit.
Should I just walk away?
Unless you are ready to lose that earnest money(the likelyhood of that seems VERY real), walk away.
Hi Yhagood,
In this general situation, I would get my own comps and then show them to the FSBO owner. Market conditions change all of the time, and this in turn will fluctuate market prices. In some circumstances, realtors may give a higher suggested listing price to a FSBO in an effort to obtain the listing! Be cautious of that!
The owner of this property doesn't seem very motivated, and the suggested numbers dont have a large enough spread to make it exciting. I would start looking for a new property . . . there are TONS out there! Best of success!
BAMZ