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ErikOk

Feedback from FSBO Contacts

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Well I received a few responses to some FSBO emails. These are from Forsalebyowner.com and Owners.com. I wasn't able to find much on Craigslist in my area. This is what I emailed to the sellers:

 

Hi <seller>

I read through your ad and was wondering if you would be interested in selling your house on a lease purchase?

Thanks,

Erik

 

*********

 

Here is what I have received for responses:

 

 

1) Sorry, we're just trying to sell it and be done with it. Anyone who buys it is going to need their financing through a third party, as we cannot carry that burden at this time.

 

 

2) At this time I am not considering a lease purchase. I am moving out of state and feel it's best to just sell.

Thank you for your inquiry.

 

3) not at this time.. thanks

 

4) Sorry, I am not interested. The price of the home has recently dropped. Check with Mona at Bryan county Realtors. I think it is in the 320's.

 

5) No, sorry.........

 

Here is my take on their responses.

 

1) Possibly motivated. He says, "just trying to sell it and be done with it"; "cannot carry that burden at this time"

2) Could possibly become motivated. "At this time I am not considering a lease purchase"; Moving out of state. So she's scared to have renters, even though they are tenant buyers.

3) So possibly in the future?

4) Not interested in L/O. Becoming motivated by dropping the price. Not even sure why I should check with the realtor, I though she was selling the property :unsure:

5) Unmotivated & will sit on the property until she gets her price (unlikely) or comes back to reality once her pain becomes too much.

 

So, I am thinking 1, 2, and 3 might be a potential prospect for a pure option. What do you all think about that? What would be the best way to present that to them?

 

I checked the pure option contract and it looks like it ties up the property for x amount of time and I get to exclusively have the right to find a buyer. What can I do (write in the contract -unless it's there and I'm missing it-) to persuade the seller to allow me to do this while at the same time they can continue to market it themselves. But, if I find a buyer for the option, then I will receive my assignment fee.

 

Any suggestions you all have, or comments about their responses are welcomed.

 

Thanks,

Erik

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1,3,4, and 5 aren't motivated. Next. . .

2 has left the door open for future consideration if the house remains unsold for some length of time.

Chasing homeowners who aren't motivated is the biggest obstacle for the new investor. It will quickly lead to discouragement and the "this stuff doesn't work mindset. My advice is to continue marketing for some sellers who are being squeezed and in need of debt relief. . .which is what you are providing, ultimately.

As for the Pure Option approach, that will only work if the homeowner is giving you an option price low enough to allow you to market the property and quickly find a buyer.

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1,3,4, and 5 aren't motivated. Next. . .

2 has left the door open for future consideration if the house remains unsold for some length of time.

Chasing homeowners who aren't motivated is the biggest obstacle for the new investor. It will quickly lead to discouragement and the "this stuff doesn't work mindset. My advice is to continue marketing for some sellers who are being squeezed and in need of debt relief. . .which is what you are providing, ultimately.

As for the Pure Option approach, that will only work if the homeowner is giving you an option price low enough to allow you to market the property and quickly find a buyer.

 

Michael ,

 

I have seen some mention that they do a pure option with the seller, and if the seller happens to find a buyer first that you didn't procure, then the deal is off. But if you find a buyer for them, then you get your assignment fee. Have you ever done it this way? What are your thoughts about doing it this route and what could be added to your pure option agreement to state this?

 

Others in the forum please post your comments too.

 

Thanks,

Erik

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For me, I don't like competing against the seller, and who's to say that my marketing is how the seller found his buyer. However, I have done this with a CA and if the seller finds a buyer before I find a tenant/buyer, the seller pays me a release fee equal to one month's rent to cover my expenses.

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For me, I don't like competing against the seller, and who's to say that my marketing is how the seller found his buyer. However, I have done this with a CA and if the seller finds a buyer before I find a tenant/buyer, the seller pays me a release fee equal to one month's rent to cover my expenses.

 

Hey Steve,

 

Something like this in the contract or maybe an addendum?

 

"If Optionor procures a Buyer prior to the Optionee, the Optionor agrees to reimburse the Optionee up to $x.xx for marketing."

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Erick-

 

I would just add to the agreement easily understood language that both agree and understand.

I put a value on my time, gas, tires, phone minutes, etc. in addition to marketing expenses.

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. . .I would just add to the agreement easily understood language that both agree and understand. . .

 

What Steve said. :unsure:

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