Still Considering. Need Advice
This is my first potential deal and I told the sellers that I'm not interested but they keep calling to see if I change my mind.
The owners have recently purchased a new home. Therefore, they are paying two mortgages and this house is vacant.
The asking price is $147,000
The house appraised 6 months ago for $156,000
Comps average about $140,000
You don't, I will!
Lease Option or Get the Deed.
This is a text book Lease Option set up.
hope this helps,
clear2close
[addsig]
Also, I forgot to mention that they are asking $3,500 earnest money deposit.
We are doing creative real estate deals, not conventional. If they want $3,500, then tell them they will get their money when you close with your buyer. The intent is to use little to no money out of your own pocket. If they don't go for this option, then they aren't motivated enough yet.
Explain to them that you are saving them way more than $3,500 in realtors commissions and/or closing costs. Worse case, see if they will take a note for the $3,500 or even $4,000 that is payable at a later date (after you close).[ Edited by appelgw on Date 10/23/2003 ]
I have to agree with applegw. This is not what you should classify as a conventional deal, so don't think about it in conventional ways.
An earnest money deposit is a deposit given when you make an offer on a home to let the seller know that you are serious. It is normally used when they are getting multiple offers and they want to seperate some of the fluff from the true money.
If they are chasing after you, you can make any offer that works for you, especially since you have already told them you aren't interested. Why do you need to prove yourself to them?
It sounds like they want more of a "down payment" than a deposit.
Quote:
On 2003-10-23 11:32, Yhagood wrote:
The asking price is $147,000
The house appraised 6 months ago for $156,000
Comps average about $140,000
I would wonder about this deal if the comps are averaging 140K and the property price is 147K. Seems like it is upside down. How are you going to make your profit? From the numbers you posted, if you jack up the price there is a good chance that it won't appraise when your buyer wants to purchase. Everyone else thinks this is a great deal so maybe I am missing something here.
Tom[ Edited by tbelknap on Date 10/23/2003 ]
yhagood,
strap on a set of iron ballz and go tell them how you'd work with them. don't give a dime. if they're calling you, that's telling you that they want to deal with you. they could be getting other offers, but people want to deal with who they want to deal with first, regardless (sometimes) of who gives the most money in the offer. so go take that house or give me the info and i'll get it (and give u a few $$$ for the lead) hahaha.