Seller Won't Budge

[<Steve> 82]

Here's the issue-

 

I have a house as a CA I have been trying to get the seller to approve a t/b. I have been marketing this property for the past 2 months and have had a lot of interest. For this property I have had 377 calls, numerous emails, 28 showings and received 6 applications. 4 of the 6 I recommended to the seller as a good tenant/buyer. The owner has rejected all of them. He is hung up on credit scores.

 

The local market where this house is located has the majority of tenant/buyers with fair to poor credit. Today I presented a tenant/buyer to the owner who again would be great for his house and their credit is fair to good and the seller still rejected them. They even offered to pay a larger option consideration and I offered the extra to the seller. I have had a good sampling of this local market and the tenant/buyers are about as good as it is going to get.

 

So.....my agreement with the seller ends in a week. I could get an extension, but I have already put a lot of time and $$ into this deal, and this house is on the edge of my marketing area and the drive is costly. I hate to do it, but I may just cancel my agreement and wish him good luck.

 

Does anyone have any ideas how to re-motivate this seller?

[BEV! 0]

Here's the issue-

 

I have a house as a CA I have been trying to get the seller to approve a t/b. I have been marketing this property for the past 2 months and have had a lot of interest. For this property I have had 377 calls, numerous emails, 28 showings and received 6 applications. 4 of the 6 I recommended to the seller as a good tenant/buyer. The owner has rejected all of them. He is hung up on credit scores.

Hello Stevie

In my opinion, you're wasting your valuable time and money with this one homeowner. I once had a landlord do this to me with ONE t/b prospect I had but after he rejected them, I told the landlord ADIOS, faster than lighting speed. NEXT! (he's still advertising his home online FRBO)

 

The local market where this house is located has the majority of tenant/buyers with fair to poor credit.

In today's market, homeowners can not afford to be too picky.. period!

In my case with the FRBO landlords, I tell them about my "only" policy in today's fatal market is called the ... " If you pay, you stay " policy.

As long as they pay their rent on time, they can stay. Around 98% of landlords can live with that policy as they weren't selling their house to begin with anyway, so if the t/b exercises the option is just a bonus to the landlord. And if the t/b wants to buy but not able due to credit, they're willing to stay there until credit issues are fixed and market cooperates. (is between them two from there)

 

Does anyone have any ideas how to re-motivate this seller?

I would let him go first.

The only motivator I can think of in this case would be after you drop him and his next double mtg payment is nearing, he'll probably give u a call then

 

BEV!

[MichaelC 160]

Steve, Bev has hit the nail on the head. Apparently, this homeowner has been spoiled by your efforts and results, and now believes he can pick and choose the tenant of his dreams. You've done your job, and there's no need to do any more for this guy. As much as you have earned and want your payday from this deal, I say cancel your agreement, turn in the keys, and wish this homeowner good luck striking out on his own. Sometimes, we don't know what we've got till it's gone. I suspect he'll feel the same way about you in a month.

[<Steve> 82]

Hi BEV! & MC thank you for the reply. I think you are right. Below is an email I sent him this morning and his reply will determine his fate. I changed his name for privacy.

 

Mr Seller-
Please realize that when someone purchases a house with a lease purchase many lenders see it as a refinance as the tenant/buyer has possession of the house and a history of making payments in an owner finance situation.  Being first time home buyers they may also qualify for first time home buyers assistance. I have had a lot worse get financed.  I have a company that will put the tenant/buyers rent payments on their report which helps their credit.  I also can recommend mortgage brokers and lenders who understand a lease purchase and who recommend many people go into a lease purchase while getting their ducks in a row to buy.

The way the current market condition are, and how things are going, we have not hit bottom and I think next year, 2009 will be worse than this year.  Mr. Seller, I have had 377 phone calls, many emails, 28 showings of your property and received 6 applications.  I have had a good sampling of the local market for your property.  Unless you do not mind sitting on a vacant house, I would recommend getting someone in your property who wants to buy it and will work for that goal.  Someone who will pay the rent and take care of your house.  At a minimum this will get the payments off your back with a possible sale.  If the tenant/buyer can not buy and your property goes vacant, you can always call me to place another tenant/buyer.

[MichaelC 160]

I think you might have sabotaged your own efforts, Steve. By telling this guy that you've received almost 400 inquiries about his house, he's probably convinced he owns the greatest property since the Taj Majal. I hope I'm wrong, but I assume his thinking is along the lines of, "I'm sure we'll find someone worthy of my house in the next 400 calls, Steve".

[Dustin 0]

Maybe he wants the contract to expire for some reason and hes not telling you.

 

This is the kind of guy that I would call up and ask to meet me in person somewhere comfortable and populated so I can look him in the eye and ask him "Sir, I know you have issues with all these applicants credit but I am getting the uncomfortable feeling that its REALLY something else...is this true?"

 

Then I don't say a word.

 

Truth comes out.

 

I either quit working with him or make an adjustment.

 

After all that effort... I would really want to know the truth (for my own experience). Is it sentimentality? lack of trust, or what?

[GetErDun 0]

In every business, there are some people you just can't please. This sure seems like a prime example. That many qualified TB and the seller can't find ONE of them he can approve of just because of credit? guy doesn't get that the low credit scores are the reason WHY they want to lease option his house in the first place. They can't buy conventionally. rolleyes. This That sucks that you have put the time into this one but I wouldn't waste any more on this dude. Cut your losses and move on.

[<Steve> 82]

Thanks again for the replies and I think you guys are correct.

 

This seller is a retired banker. A numbers guy. Not really a creative thinker. And you just have to think creatively in this market to make things work. We all want guarantees with no risk but that is not real.

 

I had a builder back in January that was the same way. My marketing brought about a huge interest in his property, more than his realtor was able. When all was said and done it seemed that he really didn't want to lease option his house. It was as if he was hoping that with all the interest I would stubble across a straight buyer. To bad, I had some really good tenant/buyers and his house is still sitting with a realtor for over a year now.

 

Tomorrow I have another showing at this house, and after, I'll be pulling the signs. But today wasn't all bad. I did close another SLO deal with a tenant/buyer this afternoon. So I'm off to the bank tomorrow and my wife is making her shopping list.