Please Help - Posted by Tara(AR)

Posted by Clair-MO on July 25, 2006 at 09:02:44:

I sent you an email but forgot to mention that I am in the chatroom after 8PM Central Time Zone daily if you like to chat a bit.

Please Help - Posted by Tara(AR)

Posted by Tara(AR) on July 24, 2006 at 13:36:58:

Here’s the deal:
This man is in preforeclosure and he’s with a realtor trying to sell his home. The house is not going to sell by next month. I sent him a letter, he called me, but he won’t give me any info as to how much he owes on the house or anything. I did find the appraised value of the house. He told me that the realtor told him to sell it for $60K. The house is worth $76K and was built in 2000 but it was built in a not so hot neighborhood. The neighborhood is getting back on it’s feet and people are rehabbing the homes like crazy and seling for $85-90K. He’s mad because people only want to offer him $45K for his home when other homes that are 40-60 years old are selling higher. He’s playing games though. When I asked him how he wanted everything to play out, he wouldn’t tell me. He told me to make him an offer for the house and I told him $50K. He must be desperate to sell because he keeps calling me back. What should I do??? Please help!!!

Re: Please Help - Posted by Don (VA)

Posted by Don (VA) on July 25, 2006 at 10:35:14:

You say “he’s with a realtor.” If he’s listed the house with a realtor, sure, you can talk to him…but oral offers aren’t binding. Another complication is the type of listing he has–if it’s “exclusive right to sell,” he’ll owe the commission whether the agent is the procuring factor or not. Maybe he’s got an “exclusive agency” agreement where he saves some money if he sells it without the agent. Or maybe he thinks he can do an end-run around the agent. And is he really all that motivated if he won’t reveal any information to you? But it sounds like he’s trying to get you to negotiate with yourself, raising your figure higher and higher before making a real offer. Whatever…

Look. Figure out what it’s worth to you. What makes the deal work for you? Then make an offer through the agent. And, frankly, you don’t even know that he’s received offers for $45K. Back off. Breath deeply. Then make an offer that works for you.

Re: Please Help - Posted by Clair-MO

Posted by Clair-MO on July 24, 2006 at 14:52:27:

Tara, Stand firm on your buying price! Otherwise the seller and his agent will play “games” with you. I have had a seller’s agent tell me that they have another buyer offering 10k more than what I offered. What did I do? Smiled and said "If your other buyer is willing to give you an extra 10k you better take it and we will part as friends! Guess what happened? The seller took my offer!!! I Have a price in mind and I won’t offer anymore than the price I had in mind. There are other deals out in the “real” world waiting to be picked up by an investors. If he is keeping calling you set him down and tell him what you are willing to do for him. Be frank with him if you are willing to sell at my price I’ll buy your property otherwise I’ll walk away as your friend, fair enough?
Note what his reaction will be? Just a thought for you to think about. Best of luck to you, Tara! What part of AR are you located? I’m in Springfield, Missouri.

Re: Please Help - Posted by Tara(AR)

Posted by Tara(AR) on July 24, 2006 at 15:23:55:

I’m currently in Little Rock. I work out of a town 3o miles away from the city called Sheridan.

Re: Please Help - Posted by Clair-MO

Posted by Clair-MO on July 24, 2006 at 17:02:00:

Tara, I have relative in North Little Rock and Wrightsville areas. I’m going to be coming down to Little Rock area to see my sister sometime after the 1st. If you like to discuss real estate investing come to the chat room I’ll be there!

Re: Please Help - Posted by Tara(AR)

Posted by Tara(AR) on July 25, 2006 at 07:31:53:

I live near that area. Is it OK if I email you a few questions? I’m always on the run and may not be able to log onto the chat room at the time you’re on.