Making An Offer
found a fsbo open house listing for tomorrow, asking is 200, fmv is 280. I expect to see other investors there...
if it looks good, I plan on offering 215 with a 3% seller contrib, no inspection or appraisal clause, 5% deposit, a great pre-approval letter, and close in less than 30 days... Is there anything else I could offer that might make my contract sweeter, and get chosen over the others?
be there first and bring the deposit in certified check
Am I missing something or are you offering more than they are asking? With 3% seller contrib., that would make the offer $206,000. Your 5% deposit would be viewed as down payment and be deducted from what you bring to close.
At $206,000 with 3% back, that's still a full price offer. Why would your first offer be full price?
Do you have good comps to justify the 280 fmv?
Try to sweeten the deal for you first, not the seller. If other investors are there fighting for it, then get more aggressive with your offer. If the spread truly is as you say, don't leave until it's done. Don't give them a chance to shop your offer.
Also, be careful not to give too many contingencies away, i,e. title search. You do not want to uncover any surprises, like an $80k lien.
Good Luck
make sure the cashiers check is made out with their name on it, this always works for me, make's it seem more real to them.
Thanks for all the advice.
I got the contract =) I came there with 10k cashier's check made out to them, with my preapproval letter.
There was a contractor that showed up at the same time I did (before the opening of the open house), that I wound up competing with. They finally went with me because I had the check, and of course my price.
Well done to the buyer!
General comment to one or two others.
Never be afraid of offering more then asking if you are sure you will be making a good profit. I mean really sure of the profit.
If you try to low ball a seller when the property is already way below market you are very likely to find someone who is less aggressive walking away with the deal. At least if it is advertised and there is an open house, etc.
In this case making over 60% would be just fine with me. Pushing it over 80% sounds great but I would rather make sure I get the 60% in my pocket then to be telling stories of how it got away.
John
[addsig]