lhenley 8 Report post Posted February 22, 2011 I had 2 recent FSBO's call from my marketing. Seller #1: Insists house is worth $125,000. Realtor CMA comes in at $99,000.Seller #2: Insists house is worth $145,000. Realtor CMA comes in at $131,000. Both wants ALL CASH. I can't see any deals here, or am I the idiot? Thanks, Lynn (FL) Share this post Link to post Share on other sites
speedingpenguin 19 Report post Posted February 22, 2011 I'd first like to vote the title of this thread for "Title of the Year" award. It sounds like the sorts of sellers I talk to every day!Remember, you're going to disqualify most of the people you'll talk to. It's the small percentage that WILL be motivated and WILL be reasonable as far as what they expect to get that will make you money. Unless those people have a real motivation to do something now, you're probably wasting your time if you stick with them AT THIS TIME. Give them another 30-60-90 days to find the price they're asking in cash. When they don't, try again and see if now they're ready to work with you Share this post Link to post Share on other sites
pilot76180 51 Report post Posted February 23, 2011 I have an old Michael Bolton 33 RPM album I'd like ALL CASH for....Sellers that want all cash are all idiots. I tell ya, I just don't have time for that stuff. I had a seller call me and talk to me for about 30 minutes, and she seems like she'd like to do something, but...I don't know....she talks kind of slow for me...like, not totally retarded...but like...she's going on 2 cylinders....and I just don't want to jack with that for a year, you know? "Sorry miss...you sound a little bit slower than what our program typically calls for. I don't think I can help you." She wants me to meet her at the house to go thru everything in more detail...holy crap lady...I don't have a week to talk to you. Tell you what...you record your questions onto a recorder, then I'll play it back at super high speed so that my time isn't wasted. It's weird I know, but as busy as I am, I just don't have the time to go look at her little $120k house that's 25 minutes away. I guess that's a good sign that you're busy! Share this post Link to post Share on other sites
<Steve> 82 Report post Posted February 23, 2011 You're to funny Pilot. Yea they're idiots. If I am paying all cash in todays market I want a steep discount. Send them your Short Offer of what you can do and let them sit on it for a couple of months and call you back. Share this post Link to post Share on other sites
birtane 0 Report post Posted February 23, 2011 You guys make MY DAY every day with your funny posts. Thank you. It is funny and at the same time it is sad. It is funny to fast forward busy investors like pilot here but its kinda sad for me without a deal yet. I have landed 4 motivated sellers already but as much as they are motivated they cant give me decent house price that i can work with. They all are somewhere in the sky. I know I have to educate them and all about how houses dont sell anymore at high rise prices, how they will loose more money when they deal with realtors and that renters will destroy their house etc. They all get that from me but as they have 0 or negative equity in the house they cant give/drop the price that I think I could work with.My question is should I still try to sign contract with them and try to market property or just move on and hope for better seller??I know somebody mentioned on forum about how house price can be higher because tenant/buyer has the time and the terms. But how higher are we talking about? the comps are around 125K. Can I market my property for 135K? or I am not gonna get any calls?Talking about comps MC, on your manual you said get a property profile from title insurance company. So far I havent been lucky with title insurance companies in my area. Zillow.com doesnt always seem trustable to me. I tried Smart Home Buy paid website but even after I paid $9.95 i got "No Recent Sales Information Available For This Property". What good paid OR free websites do you guys use to determine house value/get comps??Realtor? But when I talk to him/her and ask for expired listings or comps, what good is for him/her? why would they work with me? How do you guys "make friends" with REALTORS??? BTW I already made an appointment with one realtor "to discuss investment opportunities" and she has mentioned that she is "investor friendly" I will let you know later on how friendly she really is (not) AS ALWAYS I APPRECIATE A LOT YOUR ANSWERS.Thank you. Share this post Link to post Share on other sites
lhenley 8 Report post Posted February 23, 2011 Birtane, I have no problem getting sellers to call from my marketing, but like I said in my opening message, they are in a cloud about what their property is worth. Today, I made an offer on one. Based on my Realtor's (more on that later) CMA, the property is worth $131k. The owner finally admitted she owes more than that, and naturally, can't take my offer. I'll let someone else talk about how much above actual value can you raise the price. I've always heard that you can go up as much as 5%, and still be OK. I have a working relationship with a couple of Realtors. The one I work most with, I had approached her about sending me the expired MLS list, in exchange, I'd refer her to any owners I could not work with, but wanted to relist with another agent. I've referred 2-3 owners to her, and she's even listed and sold one of those. She's also where I get my CMA's. I email her the address, and she emails me the CMA. I hope this answers some of your questions. Lynn (FL) Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 24, 2011 Sorry I'm late to the party, but I always like to make a Lady Gaga-like entrance when I make arrive. . . Lynn, no, it isn't you. The average homeowner will insist there house is worth more than it is, and will then try to justify it by pointing out the fruit trees in the yard, the soft toilet seat, and the $75 invoice he has in his hand for having the gutters cleaned recently. Sometimes you just need to let the homeowner fight the market themselves for a month or three. If they're serious but just ignorant about market prices, you may get a call back in due time. But if you try and force the issue, not only won't you get the deal, you'll also get frustrated as hell and begin to question your sanity. Kind of like you're doing now, Lynn. Time is the best motivator. Let 'em be for now. My question is should I still try to sign contract with them and try to market property or just move on and hope for better seller??birtane, only you can make that call. How much above the market is the deal? Is the property especially appealing or in a highly desirable school district, for example? That may enable you to push the envelope. But signing up overpriced properties for the sake of saying you've got a deal will get you nowhere fast. Learning your market is critical to answering your question, and there isn't any shortcut to experience. Talking about comps MC, on your manual you said get a property profile from title insurance company. So far I havent been lucky with title insurance companies in my area. Zillow.com doesnt always seem trustable to me. I tried Smart Home Buy paid website but even after I paid $9.95 i got "No Recent Sales Information Available For This Property". What good paid OR free websites do you guys use to determine house value/get comps??As you begin to get into this biz, you will need to establish relationships with an Agent or two, a mortgage broker or two, and a title company rep. They want your business. In exchange for that, they will assist you with things like the aforementioned property profile and running comps for you. If you can, find yourself a newer agent to work with. Like you, they are looking to network. Also, try a local real estate club.As for online comps, take the free ones with a jaundiced eye. They're free for a reason. They may be good for gathering sales data, but don't take Zillow's value as gospel. Dig through the numbers yourself for a more accurate estimate of value. And stop paying for comps unless you know for certain the homeowner is serious and you're confident you'll be doing business. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted February 24, 2011 The average homeowner will insist there house is worth more than it is, and will then try to justify it by pointing out the fruit trees in the yard, the soft toilet seat, and the $75 invoice he has in his hand for having the gutters cleaned recently. ...so true Share this post Link to post Share on other sites
speedingpenguin 19 Report post Posted February 24, 2011 I have landed 4 motivated sellers already but as much as they are motivated they cant give me decent house price that i can work with. They all are somewhere in the sky. They might be motivated, but how MUCH are they motivated?What is their motivation? What happens if they don't do something quick? I talk with lots of people who are motivated, but not motivated enough.When you find someone who's not living in the house any more, isn't collecting rent, is struggling to make both mortgage payments each month, and who hasn't had any luck selling the house for a few months... you might have someone who has a strong motivation. When you find someone who's really itching to move north to New England so they can experience 26* weather and snow and ice during the winter months (And who wouldn't wanna move north to enjoy the lovely climate!), they've been trying to sell for 2 years (on and off) with no real offers, and worst case scenario they keep the house for another 3 or 4 or 5 years until the market picks back up and they can get their price... but they really want to sell the house as soon as possible, so they can start looking for a house in Massachusetts ... you probably have someone with some motivation, but not enough to be worth much time. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted February 24, 2011 Chris now that's crazy. I have a seller extremely motivated who is moving to Mass. to enjoy the cooler weather. Your scenario fits them to the tee. I have just found a tenant/buyer and on the edge of closing this deal and the seller is jumping out of their skin to move. They are looking for a house to RTO or rent. PM me if you have something available and I will see if it is something they would be interested in. Share this post Link to post Share on other sites
birtane 0 Report post Posted February 24, 2011 Thank you Lynn (FL), MichaelC, Chris_Ma Share this post Link to post Share on other sites
speedingpenguin 19 Report post Posted February 24, 2011 Thank you Naked Investor Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 24, 2011 Thank you Naked Investor I'm feeling all warm and tingly inside. . . Share this post Link to post Share on other sites
verbatim 1 Report post Posted February 24, 2011 this is the same question i asked my self yesterday! I have found a tb for a home i have been marketing and now the owner says "lets hold off on getting the deposit from the tenant." Now his house has been listed for a year & I know he is saying this because traffic has picked up from the realtor after dropping the price 2 months ago to a point where he will just break even and make no money. With me he will make 10-15k when buyer gets a mortgage. I told him i can't string the tb along until your job relocation deadline in april in the hope that your home sells. After making my case he now wants to have a yet to be found attorney "review the contracts." I said fine, let me know where to meet you and your attorney and I will meet at his office. After marketing this home and taking tons of calls since january I thought " is this seller an idiot or is it me?" Should i have done something differently? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 24, 2011 verb, regarding the sudden need for an attorney, we both know that's a ploy to stall for time. Your answer was by the book.Over the years I have had any number of homeowners change their mind in midstream. It's particularly infuriating when they do so at the last minute when you have a t/b at the ready. Don't know what else you could have said or done, other than to emphasize "a bird in the hand, (your t/:lol:, is worth two in the bush, (the imaginary buyers the Agent has)". Share this post Link to post Share on other sites
