I am sure others will offer a different view than I. Many people will tell you that if your offer is too low they will be insulted and will not sell to you. ahhhhhhhhhh yea ok I am willing to take that chance.
In my opinion if you are not cringing in complete embarresment then you offered too much. This is why I ALWAY prefer to place my offer with the listing agent. In my experience usaully they will give you ALOT of information about the seller even if you don't ask them to. This helps in deciding how much to offer.
Keep in mind when you submit the offer through the listing agent they get double the commission and IMO are more likely to 'help' you with information about the sellers thoughts which helps in deciding how to formulate the offer.
Few examples for you. I was looking at a 150K property. I figured I would offer 130k. A real estate invester freind said NO WAY. Offer 100K> Well I followed his advice and did. Guess what? Seller accepted the offer with no counter. Nice way to make 20K in 2 days. <IMG SRC="images/forum/smilies/icon_smile.gif"> Of course then I wondered if he would have accepted 90K.
Another example. House for sale for $35K. I offered 20K with 20% down owner fincancing. No counter offer just a NO> I offered 22K same financing. NO
sorry to get off the topic here, but good to hear from ya william..welcome aboard the site,,its great to have another piece of good knowledge chiming in..
regards-pat
i agree with all the above posts..i set parameters or equity spreads for each of my exit strategy's..i wasted more time wondering if and when and what kind of counter offer i would make that i got to wrapped up in the offer..exceptions to all of my rules of course, but i now make offers in accordance to my preset accepted spread..decide what will make you happy and put the offer in then move on to the next..good luck..
regards-pat
IN the past two days, I've encountered two fsbo "owners" who think their properties are worth way more than they are. They are both in medium states of disrepair, but not falling down. Both had asking prices that nearly topped out with the comps in the area.
By the way, both of the owners props are not even on the market yet. Their houses were empty and I found out who the owners were and called them. I talked them both into waiting on my offer before listing it with a realtor. Now I have to come in with the first offer they will get. I plan to lowball the heck out of both of them. Cross your fingers!!
hi paula, i have found that fsbo's can be some of the most stuborn sellers out there..have you determined your exit strategy on these houses?? for example if i see low equity then maybe i will buy with lease/option, or, sub-2, or equity holding trust (which im learning about now) as my exit.. i will build equity through appreciation..or, high equity- flip, retail or wholesale..knowing their motivation is key to your approach..i heard this a while ago-"its not about the house, its about the people in the house" timing, timing timing..if they accept my offer i dont want to think later , "could i have aquired this house cheaper-i should have offered lower"..or, if they reject my offer i dont want to go back to my calculator seeing where i can skim some more cash..each of my offers has a low and high range and i dont deviate from this..it makes my offer process faster and allows peace of mind..hope this helps..
regards-pat
Quote:
On 2003-11-27 15:31, patricc68 wrote:
hi paula, i have found that fsbo's can be some of the most stuborn sellers out there..have you determined your exit strategy on these houses?? for example if i see low equity then maybe i will buy with lease/option, or, sub-2, or equity holding trust (which im learning about now) as my exit.. i will build equity through appreciation..or, high equity- flip, retail or wholesale..knowing their motivation is key to your approach..i heard this a while ago-"its not about the house, its about the people in the house" timing, timing timing..if they accept my offer i dont want to think later , "could i have aquired this house cheaper-i should have offered lower"..or, if they reject my offer i dont want to go back to my calculator seeing where i can skim some more cash..each of my offers has a low and high range and i dont deviate from this..it makes my offer process faster and allows peace of mind..hope this helps..
regards-pat
Agree 100%.
It is like a realator gives them a reality check about what their property is REALLY worth.
Also by the time they go FSBO for 3 or 4 months not marketing it properly and then another 3 or 4 months with a real estate agent who in MANY cases doesn't marktet it properly they are REAL don't wanters and are much more willing to accept a low offer.
Both owners are ladies. Both are married to Nashville songwriters. Both have a fair amount of equity. Both loans are assumable, and they both showed interest in doing it that way. I plan to flip the one that has fewer repairs. The other one has the potential to be an awesome home...on an acre lot ..top of a hill on a dead end street. Real possibility of making this house a nice payday. I'll offer my buyer some help with financing. I've already talked with a finance company that will do 80% for almost anyone. I've already talked with a buyer's agent that says she can furnish me with customers.
One question though...if I assume these loans....and if they happen at the same time, will red flags go up on my credit report, and will that disqualify me for one or the other? Sub to may be the way but I'm having trouble realizing the concept, and not at all sure if I could pull it off...explaining it to the seller, that is.
And Quinn...sorry for commandeering your topic.
I like Williams comment the most it brings things down to reality. Work in the area that is good for you. Do not move out of that sacred space.
As a Real Estate Broker I deal with many properties that have not been properly offered for sale. For Sale By Owners are always fun. I keep looking for the golden foundations or the water pipes all copper and wrapped all joints wiped etc. etc.
I usualy give them a Reality Adjustment and I do it with lots of evidence, pictures of comps, lists of sales, times to sell etc.
Then I sit down and try to get the WannaBe Seller to give me the real reasons for selling. If I find that he has a time restraint, like he's out of cash for the nex mortgage payment. Has to leave town cause of a job. Has to sell cause he is getting divorced from his wife who is pregnant with another who is also dating his daughter blaw blaw. I find a solution. All Cash and a fast track. I tell him to get his coat on I am going to solve his problem we are on our way to Escrow. No more costs, no more termite reports, title policies petty expenses, brokers fees. I deduct all that from the price of the house and we drive to escrow and that is that. He signs my special do not sue me in the future letter and I have him draw deed, deposit in escrow sometimes for imediate recordation I hand him a small check, yes sometimes it is good. He is on his way. I own a house. But remember I know what I am doing. I have researched prior sales, tax liens, old additions and changes. I own a computer I have all the sources available just by hitting the key called Enter. Easy simple, the Seller loves me and sometimes I make money.
I am sure others will offer a different view than I. Many people will tell you that if your offer is too low they will be insulted and will not sell to you. ahhhhhhhhhh yea ok I am willing to take that chance.
In my opinion if you are not cringing in complete embarresment then you offered too much. This is why I ALWAY prefer to place my offer with the listing agent. In my experience usaully they will give you ALOT of information about the seller even if you don't ask them to. This helps in deciding how much to offer.
Keep in mind when you submit the offer through the listing agent they get double the commission and IMO are more likely to 'help' you with information about the sellers thoughts which helps in deciding how to formulate the offer.
Few examples for you. I was looking at a 150K property. I figured I would offer 130k. A real estate invester freind said NO WAY. Offer 100K> Well I followed his advice and did. Guess what? Seller accepted the offer with no counter. Nice way to make 20K in 2 days. <IMG SRC="images/forum/smilies/icon_smile.gif"> Of course then I wondered if he would have accepted 90K.
Another example. House for sale for $35K. I offered 20K with 20% down owner fincancing. No counter offer just a NO> I offered 22K same financing. NO
I offered 14K ALL cash and got a big FAT YES!
[ Edited by MrMike on Date 11/26/2003 ]
You should be making your offers on numbers that work, not what the property is listed at or what you think thet will accept.
Run the numbers and make your offer based on a deal that will show a profit.
[addsig]
sorry to get off the topic here, but good to hear from ya william..welcome aboard the site,,its great to have another piece of good knowledge chiming in..
regards-pat
i agree with all the above posts..i set parameters or equity spreads for each of my exit strategy's..i wasted more time wondering if and when and what kind of counter offer i would make that i got to wrapped up in the offer..exceptions to all of my rules of course, but i now make offers in accordance to my preset accepted spread..decide what will make you happy and put the offer in then move on to the next..good luck..
regards-pat
IN the past two days, I've encountered two fsbo "owners" who think their properties are worth way more than they are. They are both in medium states of disrepair, but not falling down. Both had asking prices that nearly topped out with the comps in the area.
By the way, both of the owners props are not even on the market yet. Their houses were empty and I found out who the owners were and called them. I talked them both into waiting on my offer before listing it with a realtor. Now I have to come in with the first offer they will get. I plan to lowball the heck out of both of them. Cross your fingers!!
hi paula, i have found that fsbo's can be some of the most stuborn sellers out there..have you determined your exit strategy on these houses?? for example if i see low equity then maybe i will buy with lease/option, or, sub-2, or equity holding trust (which im learning about now) as my exit.. i will build equity through appreciation..or, high equity- flip, retail or wholesale..knowing their motivation is key to your approach..i heard this a while ago-"its not about the house, its about the people in the house" timing, timing timing..if they accept my offer i dont want to think later , "could i have aquired this house cheaper-i should have offered lower"..or, if they reject my offer i dont want to go back to my calculator seeing where i can skim some more cash..each of my offers has a low and high range and i dont deviate from this..it makes my offer process faster and allows peace of mind..hope this helps..
regards-pat
Quote:
On 2003-11-27 15:31, patricc68 wrote:
hi paula, i have found that fsbo's can be some of the most stuborn sellers out there..have you determined your exit strategy on these houses?? for example if i see low equity then maybe i will buy with lease/option, or, sub-2, or equity holding trust (which im learning about now) as my exit.. i will build equity through appreciation..or, high equity- flip, retail or wholesale..knowing their motivation is key to your approach..i heard this a while ago-"its not about the house, its about the people in the house" timing, timing timing..if they accept my offer i dont want to think later , "could i have aquired this house cheaper-i should have offered lower"..or, if they reject my offer i dont want to go back to my calculator seeing where i can skim some more cash..each of my offers has a low and high range and i dont deviate from this..it makes my offer process faster and allows peace of mind..hope this helps..
regards-pat
Agree 100%.
It is like a realator gives them a reality check about what their property is REALLY worth.
Also by the time they go FSBO for 3 or 4 months not marketing it properly and then another 3 or 4 months with a real estate agent who in MANY cases doesn't marktet it properly they are REAL don't wanters and are much more willing to accept a low offer.
Both owners are ladies. Both are married to Nashville songwriters. Both have a fair amount of equity. Both loans are assumable, and they both showed interest in doing it that way. I plan to flip the one that has fewer repairs. The other one has the potential to be an awesome home...on an acre lot ..top of a hill on a dead end street. Real possibility of making this house a nice payday. I'll offer my buyer some help with financing. I've already talked with a finance company that will do 80% for almost anyone. I've already talked with a buyer's agent that says she can furnish me with customers.
One question though...if I assume these loans....and if they happen at the same time, will red flags go up on my credit report, and will that disqualify me for one or the other? Sub to may be the way but I'm having trouble realizing the concept, and not at all sure if I could pull it off...explaining it to the seller, that is.
And Quinn...sorry for commandeering your topic.
I like Williams comment the most it brings things down to reality. Work in the area that is good for you. Do not move out of that sacred space.
As a Real Estate Broker I deal with many properties that have not been properly offered for sale. For Sale By Owners are always fun. I keep looking for the golden foundations or the water pipes all copper and wrapped all joints wiped etc. etc.
I usualy give them a Reality Adjustment and I do it with lots of evidence, pictures of comps, lists of sales, times to sell etc.
Then I sit down and try to get the WannaBe Seller to give me the real reasons for selling. If I find that he has a time restraint, like he's out of cash for the nex mortgage payment. Has to leave town cause of a job. Has to sell cause he is getting divorced from his wife who is pregnant with another who is also dating his daughter blaw blaw. I find a solution. All Cash and a fast track. I tell him to get his coat on I am going to solve his problem we are on our way to Escrow. No more costs, no more termite reports, title policies petty expenses, brokers fees. I deduct all that from the price of the house and we drive to escrow and that is that. He signs my special do not sue me in the future letter and I have him draw deed, deposit in escrow sometimes for imediate recordation I hand him a small check, yes sometimes it is good. He is on his way. I own a house. But remember I know what I am doing. I have researched prior sales, tax liens, old additions and changes. I own a computer I have all the sources available just by hitting the key called Enter. Easy simple, the Seller loves me and sometimes I make money.
The End Lucius