EQUITY NOTES 0 Report post Posted August 19, 2013 Hi All Hope you are having a good summer. I have a question that I need some good naked investor answer to: I have a seller (rehabber) who has a nice 2 story 2- bed georgian home for sale in an excellent area by me. He has it fsbo for $239,900.I have checked zillow and the higest in the area for simiular properties one on the same street is $157,000. When checking with the assessor office its shows the 2013 market value at $94,500.I see quite a spread there is the tax info generally in line with market value as I mentioned they show a market value also but less than zillow Shoud I take a pass if sellel wont move down on value. I know he replaced roof, furnace and electric, but I do not think I can a lease option to a tenant-buyer for the high price would work, and yes he asks me if $2,000. per month rent is ok, well the area rents for homes is $1500.. tops for similar properties. I think I should politely say I can't do the deal at that price (he also has a bunch of condos i could get options on if I can work with the guy. Please Advise,Will meet with him later todayThanks for taking the time to review my postTom Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 19, 2013 Tom, tell the owner that the sales data you looked at doesn't support his asking price. Take a "I'm sure it's me" approach, and ask him where you are going wrong and request to see his sales data. In other words, make him justify his asking price. I suspect he won't be able to, based on what you wrote above. If I'm correct, it serves no purpose to take on the deal when it is so overpriced. Share this post Link to post Share on other sites
EQUITY NOTES 0 Report post Posted August 19, 2013 TtHANKS Share this post Link to post Share on other sites
EQUITY NOTES 0 Report post Posted August 19, 2013 Thanks Michael. I guess I eas looking for that answer. I went over what I said and did on this call. Wanted to ask a question also that I should have perhaps done. He offered to come down to $210,000. and offer concessions to a buyer.Is it ok in your opinion to do a pure option with wording at the bottom saying:This option with seller approval can be replaced by a lease option and a residential lease. with a new agreed upon sales price. I felt I could have pushed harder as he thought the property was not suitable for a lease option, but perhaps I should have pushed for a pure option as he would negoiate a cash buyer.I felt I got hung up to much on sales price and forgot my other options that may have workedTom Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 19, 2013 Tom, there aren't any options available if the terms aren't realistic. The fact that he dropped his price $30K just like that tells you he knows he is dreaming about the price. Did you ask for his sales data? Share this post Link to post Share on other sites
EQUITY NOTES 0 Report post Posted August 19, 2013 Michael I did tell him in a nice way that all the data I have checked even the same street shows maxium value at $157,000. He went on about the work he did on the electric and other items are not taken into consideration on zillow etc.He wound up saying i can take a look at several condo;s he has andd thinks they may be more in line with doing a leae option than this property. Guess sometimes you just have to walk away, was kind of disapointed as I thought I could deal on this property. I agree I do not want to waste time with unrealistic selelrs spending time on something I can't move Thanks for your quick reply, perhaps I can get the condo's. we will see. Tom Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 19, 2013 Homeowners always overvalue the work they've done. Unfortunately, what they usually fail to accept is that a $300 plumbing upgrade doesn't equate to a $10K increase in value. Best bet is to walk from this one, but check out this gent's other properties. Share this post Link to post Share on other sites