OfflineI found a property that is not yet in forclosure but it is headed that way.
It is listed with an agent and the listing says(Subject to short sale sold as is)
While talking to the listing agent I found out the property was never winterized and all the pipes burst.
With that said the price listed is comparable to others in the area that don't need all new plumbing.but would need some cosmetic fixes.
My question is how do I get around the agent because I think I could make this deal work if I could deal directly with the home owner minus the agent fees.
If the agent still needs to be involved how should I make this work with them.
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If you feel that because of the plumbing and other things that house should be much lower, itemize an estimate of cost and attach to offer giving the bank an explanation of the offering price. As far as the agent go ahead and work with them because at this point that may be what is most comfortable with the sellers anyway. Ask if you can inspect home prior to making offer and get a contractor or handy guy to walk through with you (or a home inspector if you know one) and give you estimate on repairs. Due diligence. Good luck
Anita
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I am a contractor who is now trying his hand at real estate so I have a pretty good handle on what it would take to fix things.
I wasn't sure how to negotiate a short sale with realtors involved because my understanding is that you have to negotiate the sellers debt down and how can you when the realtor is trying to get a slice of the pie as well.
Also I found out about some more problems such as sewer line break, possible mold among other things but it is one of those bad houses in a great neighborhood.
So I'd like to try and pick it up but it has to be reduced in price by at least 50,000-60,000 to even make it a profitable investment.
Thanks again for the advice.
PS I am closing on my first flip on Friday and I am so excited.It has been 4 long months of rehabing this house. It was under contract in 4 days.Not that it has anything to do with this thread but I am excited.
What you need to remember is that the seller is the one that is going to pay for the agents fees. I would also agree with Anita about showing the cost involved to the bank with your offer to show that there is a lot more work on the house and that no one is going to buy it as is at a better price. Sounds like you are really on your way to becoming a successful investor. Keep up the good work.
In a short sale, the lender is doing all the negotiating. The home owner has no say at all. I think that dealing with an Agent is better, in this case, than dealing with the home owner because the Agent is not emotionally attached to the property. Part of the negotiation with the bank is the commission to the Agent, and that will be paid by the bank. Make an offer through the listing Agent, or your Agent, and start the negotiation process.
Good Luck, Al
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