I'm Nervous!

Comments(9)

• 
  dealfinder28th June, 2004

  Hello Deb,
  
  Congratulations on getting out there and trying to make something happen.
  
  I do have a few questions, though.
  
  1. What is the purpose of your "crazy low ball offer"? Do you really want to buy this property or are you trying to get an education on how a bank will react to a "crazy" offer?
  
  2. Did you pull comps and do a walkthrough with your contractor to determine repair costs? How did you arrive at the figure you submitted on your offer?
  
  Please keep us posted.
  
  Dave
  [addsig]

• 
  classimg28th June, 2004

  Keep in mind that the lender will consider you offer as legitimate. So be prepared to close on the property if the offer is accepted.
  
  Eric & Rosa
  [addsig]

• 
  deb81129th June, 2004

  Dave,
  
  I want to give you some answers to the questions you asked.
  
  First, the purpose of the low ball offer is to see just how low the bank may be willing to go. The home was priced at $83k with listing agency. It was just lowered to $73K only it's fifth week listed. Hubby and I went to the court house and found the bank paid $64K for the unit at the auction.
  
  Second, I have pulled comps and found them to be in the range of $83-$103K, same # of units, location, age of home, etc. We do want to buy the house, however, due to the repairs that need to be made we feel that the listed price is way too high. We adjusted our offer price according to this information and also that given to us by our contractor for cost of repairs.
  
  Third, this is also a great learning opportunity, but I truly don't want to insult the bank or the listing agency. We have all aspects for financing ready to go and want to close on Aug 2.(we would close sooner, but hubby is having minor surgery).
  
  I hope this provides you with some answers. And again, thank you.
  
  Deb

• 
  deb81129th June, 2004

  cjmazur,
  
  I followed most of your post, but you lost me at the end. x +200? Could you explain this please.
  
  Thanks Deb

• 
  active_re_investor29th June, 2004

  Deb,
  
  A possible tact is to make it clear to the listing agent that if there is something the seller does not like about the offer you open to counter-offers. Unless this is absolutely the bottom line and there is nothing that you would change it never hurts to make it clear that you are open to offers back.
  
  John
  [addsig]

• 
  deb81129th June, 2004

  John,
  
  I met this morning with the realtor and wrote up the offer. I did inform him that we are willing to negotiate the price.
  
  Now it's the waiting game. We gave them three days to respond to the offer and know that if they counter it may take longer. We are hoping that they want to get it off of their books asap.
  
  Thanks again for all the info and will keep you posted.
  
  Deb

• 
  dealfinder29th June, 2004

  Deb,
  
  After your answers to my questions it doesn't seem to me as such a "crazy low ball" but a figure you were going to be very happy with based on your research.
  
  I'm glad to see you made the offer and told the agent you were open to a counter which was also suggested by active re-investor.
  
  Sounds like you're on the way to making a deal. Good Luck. Keep us posted.
  
  Dave
  [addsig]

• 
  KP29th June, 2004

  Deb,
  
  First, congratulations on making your first offer.
  
  Second, I concur that your offer was not so lowball or crazy as you thought which is good when making offers to banks since they don't have an emotional tie to the house and are not likely to act without the numbers such as the reapair amounts and comps that you considered.
  
  Third, I would like to share a sentiment I learned early on and that is if you are not embarassed by your offer(at least a little) you probably offered too much. In the end they can only say no. (don't burn bridges by being unprofessional but don't give away charity unintentionally).
  They can't eat you.
  [addsig]

• 
  deb8112nd July, 2004

  Hi everyone,
  
  Just wanted to give you an update on the offer...The bad news is it was rejected, the good news is we just saved money by switching to...LOL
  
  Now back to being serious , we just couldn't make the numbers work. If we would have offered more the cash flow wouldn't have worked.
  
  So we now plan to use the money we didn't invest and put it towards our next deal.
  
  Thanks again for all the information: you folks are great!!
  
  Deb