Shar NJ 1 Report post Posted March 31, 2012 Below is an email I recently received from a seller letting me know the changes they want made to the contracts. While I have made slight changes to the contracts based on attorney recommendations I am inquiring to see how far other investors go when meeting seller requests to make the deal happen. Even though I have an able and willing seller, should I let some forego when they seem to be struggling for control from the very beginning? I am not asking for answers to the below questions, just inquiring how far others bend to meet the sellers as far as increasing price, changing docs, etc. Thanks! Sharyn Below please find my comments on the documents you had forwarded to me. Seller's Price Sheet: Thank you for increasing the monthly rent as discussed. For some reason, I thought in doing that you would also increase the Full Sales Price as well to possibly $152,900 - a middle point between so to say between the first two offers. Your thoughts? Option: Paragraph 4 - Would like it to reflect that the Seller is not responsible for any closing costs (including appraisals, inspections - not sure if this would be necessary since it's as-is, points etc.) - they will all be borne by the tenant/buyer. Of course taxes will be paid through the monthly mortgage payments as they are wrapped up in the monthly payment, so I don't even think it is necessary to address that one. I don't have money to put out of pocket and don't wish to expend any potential profit I may gain by being blind sided at closing. Paragraph 6 - please make it "responsible for all maintenance, repairs and replacement if necessary" - I really want the replacement issue to be clear in case something is not repairable... Lease: ***Question, since these agreements are between me and your company, and would be dated April 1st/May 1st, if signed tomorrow, doesn't that put your company on the hook for rental payments etc. if you don't find someone to assign this to by May 1st?*** Paragraph 1 after month to month sentence, please say and shall be subject to all terms and conditions hereof except that such tenancy shall be terminable upon thirty (30) days written notice served by either party. Paragraph 4 Landlord's address should be 129 Independence Drive, Deptford, NJ 08096 Paragraph 16 Please delete this paragraph. This property is being sold/leased as-is as is made clear throughout the documents, so I don't understand why this is there. Paragraph 18 again, please make maintenance, repair and replacement if necessary Paragraph 20 this may imply that the Landlord will be responsible for or consider maintenance and repair, but will not so please modify as necessary. Paragraph 27 please add and required to obtain renters liability for all premises but especially pool for tenant AND guests Paragraph 39 what about the option - don't these documents have to be linked or reference each other? Isn't there an agreement between us regarding this whole situation? Like outlining the fee you are taking from the $3750 or something and things you will be doing? Also, can we add something to the effect of the following to the option: COMMISSION. No real estate commissions or any other commissions shall be paid in connection with this transaction Share this post Link to post Share on other sites
MichaelC 160 Report post Posted April 1, 2012 Shar, I'm always wary when a homeowner wants to make such wholesale changes to the paperwork. It tells me they are going to be difficult to work with throughout the process. Would I still be willing to work with this woman? Yes, I wouldn't flat out ditch her. Take a step back and make a judgement call based on the big picture. You've met her and spoken with her. Is she a control freak? Is she open minded and flexible? Is she going to be so demanding and difficult when you find a t/b as to scare them off? Etc. . . What does your gut tell you? Share this post Link to post Share on other sites
Shar NJ 1 Report post Posted April 2, 2012 Michael, Thanks for your reply. I am going to forego this one; I would be willing to make the changes to the contracts as they aren't out of line and many are specific to NJ real estate law anyway. However, she is really pushing about price and I already feel as if it is priced too high. Thanks for replying, I was curious about how others handled changing the contracts and personal and professional boundries when dealing with sellers (or buyers!). Shar Share this post Link to post Share on other sites
MichaelC 160 Report post Posted April 2, 2012 Shar, it isn't so much making minor changes to the paperwork that kills deals for me. It's a homeowner who insists their house is worth more than it is, or will rent for more than the market will bear. As soon as I hear the homeowner say, "My monthly PITI is $2K and so that's what I need in rent", I know we have a problem because more often than not the rental market for their house is $1650 or so. When that happens, I'll let them fight the market on their own. . .then call me back two months later and ask if I'm still interested. Time is always a motivator. 1 Share this post Link to post Share on other sites
