Hot one! Out of State Owner! - Posted by Lonnie Turner

Posted by Bill K. (AZ) on May 10, 1999 at 21:51:09:


General Comment:

I hate to be the wet blanket, but I don’t see the deal here. You’re essentially paying market value for the property. Your seller doesn’t sound motivated to me.

In addition, what is your plan for marketing this property so that you get $275,000? An agent has been trying to sell it for just $5,000 more for, I assume, at least 3 months without success. What do you have to offer that would entice a buyer to make you an offer at that price?

Finally, if the comps for this home are $280,000, and you’re NOT using a realtor, you’re potential buyers might expect you to reduce the price by 4%-6%, the realtor’s commission.

On the bright side, if the seller is just letting you “in the ballgame” to see who can sell it first, I don’t see a real problem. Maybe you will get a buyer when the local RE agents couldn’t.

If you proceed with this, let us know how it turns out.

Good luck.

Bill K. (AZ)

Hot one! Out of State Owner! - Posted by Lonnie Turner

Posted by Lonnie Turner on May 10, 1999 at 20:46:35:

Here is the scoope:

MV/Listing price =280K
Willing to take 260400 That is MV less sales commission.

The house has been listed with a agent but the listing agreement is expiring in just a couple of weeks.

I am going to offer a three month option to purchase the property at 260400 and find a buyer to buy at 275K & do a double closing taking the difference betwen the 275K & my option price.

  1. How do I word it in my option contract that if they or a agent find a buyer before me I will rip up the agreement?

  2. Is there anything else I should be aware of before I enter into this type of agreement?

  3. Should I write in contract that the closing costs be split equally between parties.

I will be asking the sellers to give me at least two months to market the house before they list with another agent. I guess that 1k increase on my visa I received today will come in handy.

Thanks in advance to everyone.

  1. Any general advice will be appreciated.

Re: Hot one! Out of State Owner! - Posted by Russ Sims

Posted by Russ Sims on May 11, 1999 at 10:37:22:

Don’t forget about our stinking excise tax here in Wa. that you’ll be subject to in a double close scenario. As you probably know, it’s 1.7%. That amounts to $4675 on a 275k home. This leaves you with $9925 and that’s if you can defray both sides of the closing costs. I really don’t know of a way to get around the excise tax, short of assigning your contract outright. If you’ve figured out a way, please let me know!

Re: Hot one! Out of State Owner! - Posted by Irwin

Posted by Irwin on May 11, 1999 at 07:14:25:

The way you describe your contract, sounds very much like a broker arrangement, and unless you are licensed in AZ, your agreement might not be enforceable.
Also, I agree with the others, that this does not look like a deal at all. Don’t throw away that new found credit.

Re: Hot one! Out of State Owner! - Posted by JPiper

Posted by JPiper on May 11, 1999 at 01:08:06:

You’re going to get old and gray trying to do deals like this one. Find a better deal, or make a lower offer.