Posted by Ashian on March 21, 2004 at 21:29:56:
Just have the seller sign a paper the sayes he or she wants to relese the contract from the reltor and just like that the commission goes away., Well in Oklahoma anyway.
Possible deal with equity, but listed? - Posted by NCHomeGirl
Posted by NCHomeGirl on March 20, 2004 at 20:59:03:
I received a call on one of my signs from a guy who owes $18K on his 2BR/1BA in NC. He says it has been listed for about 5 months, reduced from $69,900 to $62,500, and expires April 11th. He mentioned he would take $55K for it and I think he would take less. I had comps pulled for homes on the same street and the sales price ranged from $85-105K for 2BRs. However, these comps were all from 2001. The tax value is $85K. I rode by the home and pulled a flyer. More details: Built in 1937, forced air heat, oil heating fuel, and no A/C. The vinyl siding appears to be new and the roof is 1 year old. I told the seller I couldn’t do anything right now since the home is listed with an agent. I thought about getting a look on the inside of the home, but figured I would wait until the listing expires. How should I pursue such a deal, that has alot of equity? I know I’ll have to wait to see what other repairs are needed, besides updating the heating and A/C systems. If I were able to do the deal, I would like to wholesale it, but if I could do even more creative investing, I may want to purchase it and sell it retail. Any advice?
Re: Possible deal with equity, but listed? - Posted by NCHomegirl
Posted by NCHomegirl on March 22, 2004 at 13:56:56:
Everyone, thanks for all of your comments and advice!
Re: Must be something wrong? - Posted by Gary-OH
Posted by Gary-OH on March 22, 2004 at 11:37:30:
There must be something wrong with this place if other houses in the area have sold for $85k and the seller can’t get it sold through a realtor at $62,500. There must be something missing (like the interior of the house). If the house looks good on the outside then there must be some major problems inside. Be caerful. If you do make an offer on this while it is listed make sure you use a buyers agent and tell him/her that you want to be very careful cause there is a reason this hasn’t sold. Make sure you check out the sellers disclosure statement. I myself like to wait until the listing expires to make sure I get a better deal on houses that have been on the market for awhile. On newly listed houses if there is a deal then I’ll make an offer while they are listed.
Good luck,
Gary-OH
Re: Possible deal with equity, but listed? - Posted by nick
Posted by nick on March 21, 2004 at 18:19:16:
What I’m saying is it should not matter if the home is listed or not. I’m going to make an offer that works for me. I don’t care if there is a commission or not. It should not be a part of your offer. You offer what works for you and that is it. If they don’t accept well move on. Don’t try and change your numbers to get it to work.
Nick
Re: Possible deal with equity, but listed? - Posted by IdahoFarmer
Posted by IdahoFarmer on March 21, 2004 at 24:11:58:
Why pass up a great deal just because its listed? Would you be willing to give someone $4k if it meant you could get $20k? Of course! You can either (1) wait for the listing to expire and hope the property is still available to try and maximize your $$$ or (2) contact the agent, tell him you sometimes work with another agent, but if (s)he would be willing to do a 4% commission, you will write the offer with them. (3) You could write the offer with another agent.
Idaho Farmer
Re: Possible deal with equity, but listed? - Posted by nick
Posted by nick on March 21, 2004 at 09:58:43:
Who cares if it’s listed. Are you the one pasing the commision? NO your not the seller is. Offer what makes sense and if they accept great. If they don’t then move on
Re: Possible deal with equity, but listed? - Posted by NCHomeGirl
Posted by NCHomeGirl on March 21, 2004 at 09:57:51:
Should I go ahead and schedule an appointment to look at the property now while it is listed, or wait?
Re: Possible deal with equity, but listed? - Posted by IdahoFarmer
Posted by IdahoFarmer on March 21, 2004 at 15:18:34:
Crunch the numbers. While its listed, the seller is having to pay ~6% to commission to the agent. Hypothetically this means that there is less room for him to negotiate the price… money out of your pocket. However, you much weigh this potential reduction in your net against losing the deal all together. If the numbers make sense, even with the commission, then go for it. On the other hand, if you want to gamble, tell the seller you’ll come to see the property after it is off the market. IF the property is still available mid-April, then you’ll be in good shape. If its sold, then you’ll be kicking yourself.
Re: Possible deal with equity, but listed? - Posted by Nick
Posted by Nick on March 21, 2004 at 16:04:30:
I will say this once again. Who cares if it is listed or not. What does the Realtors commission have to do with anything? Don’t make an offer based on if you have to pay commission or not. YOUR NOT PAYING IT! If it sells for less the Realtor just makes less. Big deal. Your not in this business to make Realtors money. Figure out what the AVR is find out what work needs to be done and go from there. Forget about the Realtor. Just do your numbers and make an offer. Don’t wait for it to come off the market in hopes that no one will buy it.
Make an offer now at a price you would want to pay and makes sense. If it is turned down who cares. Then if it still does not sell and comes off the market go back and try again.
Nick
Re: Possible deal with equity, but listed? - Posted by IdahoFarmer
Posted by IdahoFarmer on March 21, 2004 at 17:57:11:
Nick,
The Realtor’s commission is relevant, because with the commission agreement in place, there is less room for the seller to drop their price. For example, the seller might be willing to accept $56,000 for the home WITH the commission agreement in place, but would accept $50,000 without the agreement in place.
I agree, if the transaction works either way… do not wait and GO FOR IT. However, knowing what affect the Realtors commission will have on the sellers decision making process is important.
IdahoFarmer