How To Make A Clean Offer??
Greeings all:
I've missed out on a couple of offers now because I'm afraid of getting in over my head in terms of fix-up/carrying costs. My question is, when I see something that I'm pretty sure is well under market value, is there a way to write a contract that somes across as no conditions, but still lets me re-negotiate if something turns up upon closer inspection? I know that when there are multiple offers, those that are willing to buy "as-is" with the fewest contingencies are those that win out.
How do you present an offer that seems clean but still gives you a way out if it is a lemon?
How do you make offers that appear clean when they aint?? Boy, that's a good one. I'd like to hear the answer to that one.
Most sellers can read, or in my case understand what's read to them. There are umpteen contingecies which you could use. But, your offer would not be clean. Would it??
The contingency that you may want to use is one that's subject to the approval of a report by a licensed building inspector. That's a resonable request which I would consider to be quasi-"clean". Of course anyone who makes an "as is " offer will ace you out , but that 's part of real estate.
You can always take a contractor , Uncle Louie the real estate pro, or a seasoned investor with you just before you make your no contingency "clean" offer.
If you're sure that the property is well below market value then how big of a risk are you really taking???.
Your right sammyvegas, how silly of me to think there might be some insights into contracts that I wouldn't understand as a beginner. Just because real estate investing involves new concepts for me, serious legal obligations, and thousands of dollars of hard earned money, I can see now that I should jump right in with no hesitation.
It was helpful of you to have someone type your response!!! !
What I said was I was "pretty sure" the property was below market value. My agent hadn't supplied me comps for this subdivision when I saw the house, and, as I said, I'm no expert yet at fix-up costs. I was hoping that some of the seasoned investors out there might have some constructive suggestions for writing contracts that are both appealing to sellers and provide some level of protection for the buyer.
[ Edited by emerson11 on Date 02/25/2004 ][ Edited by emerson11 on Date 02/25/2004 ]
emerson,
i think sammy gave you a valid contigence clause in saying "subject to inspection".I think he was just saying in lighter vein on what a "clean" offer is.
you can also have a clause saying "subject to financing".you can walk away from the contract if need to, citing one of the two clauses in your contract
Thanks for the suggestions Samw.
I received a PM on my question with excellent info, which involves the Total Disclosure Statement (TDS). The statement requires the seller to disclose info about the property on a checklist to the buyer, and is required by law in many states. A buyer can write the offer so that receipt and approval of the TDS is the only stipulation on an all cash, as-is deal and, since the TDS is required by law anyway, the offer is still as clean as possible. If something is wrong with the property, the buyer doesn't approve the TDS report.