rpoissa

When you are pitching/signing a CA or SLO to a FSBO, how do you guys convince the seller to take his lawn sign off and use only yours? It's no good if his sign is still up because people will just look up his price and want that instead of yours. Not to mention two signs would look dumb. Do you just say they need to take it down or no deal? Suggestions?

Great, thanks MC!

MC, Thanks for the explanation of the "hybrid". One question, the TB brings two checks, each for half of the deposit. Now, how much does it say on the assignment agreement? Because if it says the full amount, which is obviously the amount of credit the TB wants towards the house, then doesn't it look like you are earning twice as much as you really are? I mean if you were ever audited and showed that paperwork how would explain that? Is this how it works? RobP

Thanks for you input guys. HappyArdy, yes Barrie was voted the #1 city in Ontario to invest in. It's growing really fast, is situated right on a lake, and will soon be connected by a GO (commuter) train to Toronto, a city of 4 million people. It has been a very strong seller's market for the last 5yrs, much like everwhere else. Now, houses are beginning to sit longer on the market than a year ago. I'd say it's probably middle of the road right now. The problem is FSBOs are limited in numbers, and I haven't received any favorable response yet. I'm going to keep emailing them and report back later. Thanks, Rob

Has anyone signed one of these up lately? Trying right now and would love to hear any recent success stories. Thanks, Rob

Thanks Adam!

Thanks Adam, That is great. One more question for you and others. For FSBO's who already have a sign on the lawn. How does that work? Because any prospective buyer is obviously going to check out the FSBO website and see the cheaper price listed there and want that. Do you ask them to take their sign down during your option period? Rob

Adam, With that type of deal, can you give us an idea of what kind of spread you are talking about here. 10K, 20K? And when all is said and done, what kind of profit. I know it's a little personal, but I'm just not sure what is realistic for a spread on a pure option home of say, 200K FMV. And did you hold a 2nd on this one? I mean, how did the agent get a higher price, what was the attraction? Thanks, Rob

Thanks Guys, I just wanted to reaffirm I wasn't missing something big. I appreciate your help. MC, of course it is priced a little of the high side of FMV, but isn't that the nature of the game with options, we need to make money too right? I can however, afford to do some price reduction, and you could always advertise more aggresively. Thanks, Rob

Hey Guys, I've had my first option for over a month now, and not much is happening. I've got signs around town, I've emailed about 10 brokers telling them about it, and I've placed two paper ads. I had a couple people look at it, but it just didn't work out. Anyone have any tips for selling your option? I too, like Doug, know a little more how agents feel now. It's great when you are selling a RTO, because there are lots of buyers, but a straight sale narrows your eligible buyers, especially now that the market has slowed a bit. Any tips? It's a townhouse, pp 199K, willing to hold 5%, comparables in the neighbourhood sold for 199K but had a finished basement. I'm willing to negotiate but haven't had any serious buyers to do it with. Thanks, Rob

MC, I don't think we need to continue this conversation. I already knew in the back of my mind what you are trying to point out. I didn't do my homework on the property and I signed an option with little idea of what the market value was. My market is moving towards a buyers market as houses are sitting much longer now than a year or two ago. There is a similar house on the same street listed on mls for 187500, the same as my option price. So that seller is only netting 178K even at full price. I should have used that information when I talked to the seller. Well, it's my first one, live and learn, I might be able to squeeze a few thousand out of it. From now on I'm telling sellers I buy at 95% of appraisal value. Then I can sell at whatever they have it listed at, and still make a decent dollar. Thanks, Rob

The homeowner is asking 189900. My price is higher because I am planning on holding a note. My option is for 187K, and I am trying to sell for 199500, holding back 5% or about 10K. I was planning on getting the owner to sign a cancellation agreement for the difference. So obviously this will be a problem if people are looking it up on bytheowner.com. This is my first one so I am not sure how people handle this. Any suggestions? RobP

Hey Guys, Got my FIRST EVER option!! It's on a FSBO house listed on bytheowner.com There is a big sign on the lawn. I asked the owner if I could put my sign over his and he is not sure about it. He's getting back to me tomorrow. The option is non-exclusive, if he finds a buyer he pays me a $300 cancellation fee, so he is still looking for buyers. How should I handle this? I am thinking when buyers go through the house, they will see the sign, look it up, and realize my price is more. This will just lead to confusion and thinking they are getting ripped off, that means their answer will 9 times out of 10 be, NO! What do you think? RobP

Holy Crap!! GOT MY FIRST OPTION tonight! Potential??? We'll see. Probably about 10-14K. Now it's time to find a buyer. Question: the house is FSBO through bytheowner.com. There is signage on the lawn, prospective buyers will obviously see this is and look it up. How do you deal with buyers seeing the price on the site, when obviously your price will be higher??? I don't want to ask him to take the sign down because he is still trying to sell it himself. Any thoughts? RobP

Congratulations Doug!! Well... with all the trouble with sellers in the last bit, what was different this time?? Do tell!