Option on $350K house-need advice to sell quickly - Posted by Ron-Va

Real Estate Investing
1

Posted by jeff on March 26, 2001 at 07:45:44:

As a mortgage broker, I know of what I speak. Vic is correct. Any cash, or other “contribution”, paid to the buyer will royally screw up your deal. Unless it’s in the form of the seller paying closing costs. Strangely enough, there is a new loan program, under the guise of a charity, where FHA will allow a seller to actually make the downpayment for the buyer. If you and I tried this, it would be loan fraud, but with FHA’s seal of approval, they call it charity. Go figure.

2

Option on $350K house-need advice to sell quickly - Posted by Ron-Va

Posted by Ron-Va on March 23, 2001 at 22:20:20:

Hello everyone,
I just signed an option to purchase a very nice home in one of the nicest Communities in Richmond. this is a straight option and I only have 90 days to move it. I got an option to purchase for $295,000 and it appraised for $350,000.

I have done several Lease/Options but because the owner was being transferred to Conn. they wanted to do a Straight Option instead of a L/O. I got this option for $10.00 and I need to advertise but I figure worse case I will not have but a few hundred dollars invested even if I can’t move it in 90 days.

What suggestions do you have to help move this property. By the way I used the Option Contract from Bronchicks site. So I can assign the Option also.

Any help you can give would be appreciated.

Thanks, Ron

3

Thanks!!! for all the ideas (nt) - Posted by Ron-Va

Posted by Ron-Va on March 25, 2001 at 21:36:24:

.

4

Option on $350K house-need advice to sell quickly - Posted by JohnBoy

Posted by JohnBoy on March 24, 2001 at 01:19:03:

You could offer several options to the buyer.

BUY THIS HOUSE WITHIN 30 DAYS AND GET YOUR CHOICE OF:

6 months of mortgage payments, PRE-PAID

$20k worth of new furniture of your choice

A brand new 2001 Automobile of your choice up to $20k

A luxury cruise FIRST CLASS

$15,000 IN CASH!!!

To receive your choice on one of the above selections sale must be closed on or before May 15th, 2001!

5

some suggestions - Posted by George

Posted by George on March 23, 2001 at 23:41:45:

Just an idea:

If it can be done in your area, offer a full price sale ($350,000) and offer a $20,000 rebate for new furnish, etc…It May get people attention… or you can offer 6 months of payments…

check your local laws

6

Re: Option on $350K house-need to sell quickly - Posted by Nate

Posted by Nate on March 23, 2001 at 22:58:27:

Four homes in my neighborhood (in DC) came on the market last week. Three are already under contract and the fourth is not because it’s overpriced. (This is a $350K-$450K neighborhood - a nice area, although not as nice, in relative terms, as a $350K area in Richmond I’m sure).

At least here in the Washington area, buyers in this price bracket are almost ALWAYS represented by a buyer’s agent. They know what they want and they know what they should pay for it.

One way to attract more interest would be by offering a price below market. If the house is in a $350K subdivision, offer it at $330K or $320K. Now that the weather is starting to get nice around here, lots of people are out buying and if it’s priced right I would imagine you’d have no trouble selling it in 90 days.

The other, probably better, way to do so would be to offer bonuses to the selling broker.

Wayne (MD) had a great post on here within the last day or two in response to a question someone posted about the “Mr. FSBO” type listing services which put your listing in the MLS and do nothing else. I would recommend that you find and read that post, because the point of it was that you have got to market the heck out of your property to AGENTS - not necessarily to buyers, because agents (particularly in this price bracket, if Richmond is anything like Washington) control the buyers and control what the buyers will see.

I assume you are going to sell it as a FSBO and are not an agent yourself. I would make clear in large letters on all signs, ads, flyers, and the like, everywhere, that you offer “3% co-op”. That will get the attention of buyer’s agents. Heck, maybe also throw in a “$2000 bonus for full price contract” or something in the marketing materials that the agents get (not in anything to the general public). Make tons flyers and get them to all of the real estate offices that work the neighborhood. I can practically guarantee that if the house is priced right (at or slightly below market) and you are offering generous compensation to the selling broker, you WILL get a contract on it.

Good luck!
Let us know how it goes.
NT

7

Option on $350K house - Posted by Bud Branstetter

Posted by Bud Branstetter on March 23, 2001 at 22:56:37:

Did you find out what the mortgage balance is? Or what amount of cash they need to move to Conn.? Or what are they going to do if they do notget it sold? These are very important question that need answers.

8

Move FAST! , but more Details would help! - Posted by don, sdca

Posted by don, sdca on March 23, 2001 at 22:48:48:

Did you get terms or do you have to buy ALL CASH within 90 days??

90 days is not very long to get it closed with ALL CASH, at least in my market. If this is what you have then market it like crazy and cooperate with all brokers/agents, etc. IE. get it under contract ASAP!

Remember, often the top 10% is “air” (especially in a slowing economy) so an assignment fee of a few thousand might be the best and quickest. Either way, I’d get to work FAST!

good luck,

don, sdca

9

Option on $350K house-need advice to sell quickly - Posted by Ron-Va

Posted by Ron-Va on March 29, 2001 at 16:14:21:

John-Boy
Thanks for the reply last week. I am going to try and
offer to pay 6 months of the mortgage. But I was wondering since I only have
a Option and I was going to sell my option to someone that wanted the house
how would I work this. Should I just write up a seperate contract and do
simultaneous close or what. Any help would be appreciated.

Thanks Ron

Love these ideas!!

10

Re: Option on $350K house… - Posted by Ron-Va

Posted by Ron-Va on March 25, 2001 at 21:38:36:

Thanks alot for the ideas!! I am going to give it a try and I will let you know how it turns out.

Ron

11

Twilight zone? - Posted by George

Posted by George on March 25, 2001 at 24:24:21:

Hi Johnboy,

I guess we may be drinking the same water… check my answer below under “some suggestions”" Posted just before your post…(3/23)

Are you sure you are not my lost twin brother? :slight_smile:

12

Thanks, JohnBoy… - Posted by B.L.Renfrow

Posted by B.L.Renfrow on March 24, 2001 at 18:07:45:

I like this one so much I’m gonna try it with a couple of my $50k houses that won’t move…only on a slightly smaller scale, naturally.

Let’s see…maybe a free pizza per week for 2 months from the local pizza joint. Or free tickets to a WWF exhibition…or a top-of-the-line Ford Ranger, 1989 or older…all kinds of possibilities come to mind.

Seriously, I think this is an excellent marketing idea. I’ll look forward to hearing more of the same from you next weekend.

Brian (NY)

13

Now THAT is marketing!! - Posted by Nate

Posted by Nate on March 24, 2001 at 10:37:48:

JohnBoy, you’ve done it again! :slight_smile:

NT

14

Re: Option on $350K house-need to sell quickly - Posted by ron-va

Posted by ron-va on March 24, 2001 at 07:35:44:

Good ideas thanks for the response!!

15

Re: Option on $350K house - Posted by Ron-Va

Posted by Ron-Va on March 24, 2001 at 07:31:35:

Bud,
Thanks for the response.
The balance on the home is $285,000. They want to get the $10,000 from the house but I believe they are going to let the house go back to the bank possibly if it does not sell. I was able to get the option because they are at the end of the rope financially and need to move in about 30 days.

I have never done a subject to but any ideas would you have would be helpful.

thanks again

16

Re: Option on $350K house - Posted by Nate

Posted by Nate on March 23, 2001 at 23:01:42:

It sounds like they ALREADY moved to Connecticut. I am curious, though, about the “what happens if Ron-VA doesn’t sell it” question. After all, he has an option for 90 days. If it’s not sold after 90 days, they’re then stuck with a house 500 miles away that they don’t want?!

17

Re: Move FAST! , but more Details would help! - Posted by ron-va

Posted by ron-va on March 24, 2001 at 07:34:23:

Thanks for your response!!
I have to pay all cash no terms but as long as I have a contract in time I believe they will work with me on getting it closed.

Thanks again

18

Option on $350K house-need advice to sell quickly - Posted by JohnBoy

Posted by JohnBoy on April 03, 2001 at 22:59:15:

If you’re just planning on selling the option to a buyer then just deduct the 6 months of payments from the option price you are selling for.

Let’s say 6 months of payments on the $350k would be around $3k per month and your option price is $295k. You are willing to sell the option for say, $35k.

$3k x 6 months = $18k. You would agree to take off the $18k from their option price of $35k leaving you with $17k left over to be paid to you.

19

Re: Twilight zone? - Posted by JohnBoy

Posted by JohnBoy on March 25, 2001 at 02:23:55:

Who knows…could be! LOL

Actually this idea came from the chat room a couple of years ago when a bunch of us where in there. Someone had a million dollar home under contract had stood to make about $300k on the deal, assuming it sold at FMV anyway. Since the deal had so much equity to play with and since homes in that price range are much harded to sell, we came up with the idea of offering “His and Hers Mercedes” to whom ever purchased the property or to which ever realtor brought in a buyer and closed on the sale! This was a few months before the convention in Dallas which was two years ago. Man, time sure does fly!

20

Re: Thanks, JohnBoy… - Posted by JohnBoy

Posted by JohnBoy on March 24, 2001 at 19:26:46:

I don’t know how much room you have in regards to profit to play with on these, but another idea that could work, especially if you have any decent lakes near the property, would be to offer a Brand New Jet Ski to the first buyer that closes by such and such date! I think you could find some pretty nice ones in the $3500 - $4000 range with a trailer. Shop around at some local dealers. If needed, add a couple thou to the purchase price or give the option of taking $2k CASH instead! CASH seems to get peoples attention and they will take less in CASH over something else of more value! That just saves you more!