How To Get An Aggressive Offer Accepted
We want to pick up a 39-unit apartment building in East Austin for around $1.6M, or better, with seller paying for closing costs. The property recently fell out of escrow, and on Tuesday the sellers reduced the price from $1.69M to $1.65M, so I suspect they are eager to unload this.
We are thinking of starting with a low offer--maybe $1.5M with closing costs paid for, so that we end up at a mutually agreeable price and terms. Not knowing their motivation for selling, how would you package the offer to increase the likelihood of acceptance?
Thanks for your help!
geez. i keep thinking of more things.. the property is apprx $150/sqft. is that avg? in chicago here.
just type "ccrd" into google.
Chances are you will never hear back from them. If you want it, there are probably others out there that want it too. I will suggest you get a professional to help you with this process. You are making a big investment and have alot to lose. You have already spent 200k or 10% on making a bad move, your buyers agent would not have allowed you to do for only 3% commission that is already built into the price. It either goes to their agent, or your agent. You need representation until you know how to handle these situations. Always submit offers in writing with a quick deadline for response, less then one day, unless it is going to a bank. OR else, your offer will be shopped around, or second guessed by the seller. Too risky. Interview some savvy Realtors to fight in your corner.
how do I flip the script. What action step do I have except not to make an action?
by the way. I am the agent and the buyer is a family member.
thanks
Hello Sea biscuit.
I tried to look on the mls to see if there was any information I could get by address. no luck. But I did find other similiar properties that were being sold for approx the same price.
Occupancy rate is tricky. there are 7 pins. there are only two tenants that are paying WAY below market rents. total income on the buidling as it stands is 10k. I think the taxes on the building minimum are 40k. so negative cap rate for sure
The owners have tried to evict both tenants. That is why it is so hard to determine cap rate. it would be negative I would think. Plus sellers arent selling based on income. They are holding until they get the right buyer who would develop the property.
dscr? I dont know what that is.
the whole building needs a face lift . and the interior was hacked together by the remaining tenants.
this is my buyers 1031. bank financing also for remaining.
this building or similar building to be rehabbed and filled with proper tenants.
that is goal