The Seller does not think they want to sell sub 2?
The seller says she wants out of the house and the loan, because she is buying a new house. I will meet with her tomorrow night, to see which one of our programs (Sub 2, what else) her house qualifies for. Any words of wisdom to convince her that she can't sell any other way in a month (when the house is due to be finished)?
Gary-TX 
Gary,
Give her a pad and go thru the numbers with her. Look at the value repairs closing costs cost of marketing and then ask her a question like this. Based on these numbers what do you think is a fair profit? No doubt she will say 10K is the normal. thats the price that I usually go with for a sub2 deal. If its a cash deal is 1/2 and don't ask me about the other baloney programs that they are selling these days like Sandwhich lease options not my bag.
But here is a little break down:
Take 5% of asking price for negoations
Take 6% off for marketing costs even if they don't use a realtor it will still cost 6%.
Take another 4% for them to pay buyers closing costs.
So total is 15%
Based on this then you plug in the question because they can't have an argument because it will cost you the same if you were to sell. So ask the question: "Based on these numbers what do you think is a fair profit?"
Thats the number. If there is still equity then divide that balance by 100. to make a payment to them.
If you tell them that you can buy today so they can move when they want to that is the best selling part.
I hope this helps. If you want to kick it around give me a shout
[addsig]
Jonathan,
You talk about 5% for negotiating? What do you mean by that? How do you explain that to the homeowner? And the 4% figure of paying the buyers closing costs, isn't that the "buyers" costs? Just trying to understand how to cut off as much as possible.
Quote:
On 2003-05-08 21:17, JR_FL wrote:
Gary,
Give her a pad and go thru the numbers with her. Look at the value repairs closing costs cost of marketing and then ask her a question like this. Based on these numbers what do you think is a fair profit? No doubt she will say 10K is the normal. thats the price that I usually go with for a sub2 deal. If its a cash deal is 1/2 and don't ask me about the other baloney programs that they are selling these days like Sandwhich lease options <IMG SRC="images/forum/smilies/icon_biggrin.gif"> not my bag.
But here is a little break down:
Take 5% of asking price for negoations
Take 6% off for marketing costs even if they don't use a realtor it will still cost 6%.
Take another 4% for them to pay buyers closing costs.
So total is 15%
Based on this then you plug in the question because they can't have an argument because it will cost you the same if you were to sell. So ask the question: "Based on these numbers what do you think is a fair profit?"
Thats the number. If there is still equity then divide that balance by 100. to make a payment to them.
If you tell them that you can buy today so they can move when they want to that is the best selling part.
I hope this helps. If you want to kick it around give me a shout
man,
What Jonathan is offering is a pretty common price reduction strategy. If the owners were to put their house on the market with an agent, this is the cost that are associated with a sale.
The negotiations are if a potential buyer is interested in the property they will try to negotiate the price. Usual reduction is 5% of asking price.
Realtors commission, self explanatory.
I would just say closing costs, because a seller frequently has to pay these for a buyer to buy.
Unless the house is in great shape, I would add 3-5% for fixing it. Any good realtor will tell an owner to make repairs for a quicker sale.
Roger