Potential Deal HELP!
I have a friend at work here...5/3 house appraised for 389,950k (looking at appraisal in my hand). She cannot sell for that though. Relisted at 349k with a broker, deal fell through. She is currently behind 2 payments. I suggested a method I read in a book lastnight...sell your house in 5 days. Basically you place in ad in the paper at a lower price, say 295,400 and say highest bid wins house on sunday. you open house on saturday then select the bid on sunday.
Now...I am wondering how I can get a peice of the pie, she would be paying the broker 20,000....I was thinking of asking like 1% commision. I would place the ad myself, field all calls, answer questions etc.
How does this sound?
Or is there a better way to do this...I know she bought the place for 270 last year, dunno hwo much equity it has. I just want to sell this place and get some $$ too!! She is VERY motivated this thing is a huge headache for her. She just refinanced so I don't know what problems that will create.
[ Edited by riot8ap on Date 02/26/2004 ]
Well thanks of all the replies so far but I think I have something else worked out. I asked her the lowest possible she would take for the place and she said 338K...so I called up my friend who is an investor with cash to spare and he said he could back me up cash. Now we have to see if its workable that we could sell it in a reasonable time frame. 50k equity ain't bad...
Understand that I am not by any means an expert on this subject. However, perhaps I can be of some humble help is breaking the problem down.
Two months behind in payments means that one more month and the a foreclosure notice goes out. At the very least that person will ZERO credit for the next 7 to 10 yrs.
I sense something is wrong here. You have an appraisal for $389,950 yet the house did not sell down at $349K? That point needs some looking into. Do a title search, that may turn up a cockroach in there someplace.
You may be well advised to stay away from using the term "commission" to avoid being charged for acting as a real estate agent. Being a consultant would be more appropriate.
At this point you are in a position to pull off a short sale. In order to do that you need to get some numbers from your "friend at work". If you have good relationship with her and she has some sense of trust in you ask her straight out how much is owed, in TOTAL on the house.
Your objective is to create equity for yourself in the property.
Are you in a positon to assume the payments until you can find and investor or flip the house yourself?
Ideally, you need a buyer and you have little time to find one. Based on what you say, your friend has precious little time to give you to help the problem, unless of course you can assume the loan.
With luck some other member here who has battle tested expertise will respond to the problem
Good Luck