Motivated Seller, But.......

for our definition of motivated! Time to walk away and not waste a lot of time there.

The numbers are the numbers!

You do your comps.
Multiply by .70 (or what you use in your area)
Subtract repair costs
Subtract your fee.
That is your max offer.

Tammy's right! They may SAY they are motivated, but are they REALLY????

Don't get emotionally involved.

Karen

I agree with every post.

__________________________

TC
Miami, FL

FOLLOW My journal http://www.deangraziosi.com/real-estate-forums/investing-journals/144538...

Make them an offer based on YOUR numbers. Let them sit on it a while. When reality hits home with them you might get a call. It might take months.
Remember, no offer = no chance at all!

Michael

It is what it is........as Michael said make the offer.....from your numbers.....When sellers think it over, and realize 45% ( Over the FMV ) of nothing is nothing..... I bet you will hear from them.....Good Luck

Regards,
Sharon

Wondering, if any, changes should be made, to the below, "Purchase Contract"?

Standard Purchase and Sale Agreement

AGREEMENT dated this _________ day of __________________________, 2001 by and between:

_________________________________________________________________ hereinafter “Seller” and

_________________________________________________________________ hereinafter "Buyer" (or and/or assigns/nominees)

1. The Property. The parties hereby agree that Seller will sell and Buyer will buy the following property, located in and situate in the County of ________________________, State of Pennsylvania, to wit:

Known by street and address as _____________________________________________________________________________

The sale shall also include all personal property and fixtures, except

Unless specifically excluded, all other items will be included, whether or not affixed to the property or structures. Seller expressly warrants that property, improvements, building or structures, the appliances, roof, plumbing, heating and/or ventilation systems are in good and working order. This clause shall survive closing of title.

2. Purchase Price. The total purchase price to be paid by Buyer will be $ _________________ payable as follows:

 Non refundable earnest money deposit (see below) __________________________ $ ______________
 Balance due at closing $ ______________

3. Earnest Money. Agent of buyer’s choice shall hold the buyer’s earnest money in escrow.

4. Mortgage or Third Party Financing. It is agreed that buyer may require a new mortgage loan to finance this purchase. The application for this loan will be made with a lender acceptable to Buyer, and unless a mortgage loan acceptable to buyer is approved without contingencies other than those specified in this contract within 15 (fifteen) days from the date of acceptance of this contract, buyer shall have the right to terminate this contract. Buyer shall return any surveys and copies of leases received from seller. Seller acknowledges that there may be a new institutional mortgage being placed on the property and closing may be extended a reasonable amount of time to accommodate the mortgage financing process.

5. Closing. Closing will held be on or about ________________________, __________, at a time and place designated by buyer. Buyer shall choose the escrow, title and/or closing agent. Seller agrees to convey clear title by a general warranty deed, free of any liens, judgements or any other encumbrances. Taxes will be prorated at closing.

At closing, Buyer shall pay the following costs in transferring title: ________________________________________________
_________________________________________________________________________________________________________
At closing, Seller shall pay the following costs in transferring title: ________________________________________________
_________________________________________________________________________________________________________

Seller agrees to provide possession of the property free of all debris and in "broom clean" condition at closing. Buyer reserves the right to do a final "walk through" the day of closing.

6. Execution in Counterparts. This agreement may be executed in counterparts and by facsimile signatures. This agreement shall become effective as of the date of the last signature.

7. Inspection. This agreement is subject to the final inspection and approval of the property by the buyer in writing on or before ________________________, __________. .

8. Access. Buyer shall be entitled a key and be entitled to access to show partners, lenders, inspectors and/or contractors prior to closing. Buyer may place an appropriate sign on the property prior to closing for prospective tenants and/or assigns.

9. Additional Terms (if any): ____________________________________________________________________________

there is no way that I would agree to sign a contract that says that 'all personal property is included in sale except..."

You should have an attorney in your area review it...

It is a little frustrating when a deal doesn't go as hoped. When this happens to me I try and remember not to get too attached to "Having to make THIS deal". There are other deals waiting to be made.

I have come across many owners who have what is called "IKEA Syndrome" - which loosely explained means that because the owners did the work themselves they tend to overvalue their work. This is not done intentionally but is just part of human nature.

You always have to trust the numbers. The numbers are what counts.

Good luck on the next deal... and as mentioned in an earlier comment 45% of nothing is still nothing. If they come around great but in the meantime focus on the next deal.

warmest regards,
Lisa Richardson

The best thing, is to move on to the next one

If there is ever a but the sellers are not motivated in my mind.

Bryant, unless the seller's willing to sell at a substantial discount or sell on terms for FMV, they're not motivated...yet.

As far as upgrades, they might not be able to recoup their costs just based on area comps. Even if they list in the MLS for full retail, they could be pricing themselves right out of the market. The listing will sit for months and won't sell.

Liz Eastlake
The Eastlake Group

The buyer's list is my friend...

I've found that finding time to be alone with my buyer's list clears my mind and redirects me to the foundation of my career.

Without buyers, I've been taught, I have no direction, purpose or meaning.

So, to be a good student I'm always looking for ways to reduce the pain I feel in hitting that list again and again.

One way is to organize them into a spreadsheet. I can see them, quantify them and refer to them. Plus I can manipulate them into my marketing software.

Without a buyer to pay 45% over market, there's no deal. There's no deal without a buyer to pay 45% **below market for that matter.

Or, did I misread the question?

Paul

agree with you all, in saying that the seller, isn't as motivated, as she claims to be, even after countless discussions with her, over how much over FMV, she's priced her home, but she doesn't deal in percentages(as she states) and there seems to be no reasoning with her, so,I've moved on and will let her keep paying property taxes, on something that she's not living in, until she decides to join the real world and come to her senses, then, she can contact me.

Thanks again, everyone, for your valuable, input!

What I've learned is to end every conversation with a seller with an open door. That means that they need to know that you are there for them WHEN they are ready to sell their property. The object of this group is to create win/ win scenarios for all so be mindful of how you end your conversation. As Michael Mangham said, no offer = no chance. If you are giving them a fair offer, you have a chance, at some point, to close the deal. Make an unfair offer and your chances go way down of ever hearing from them again. Yes, your time may be better spent at this point on more motivated sellers but every seller is motivated to sell. Some are just more motivated than others.

If you are trying to wholesale the property, you may want to get it under contract now, for the best price they will let it go, give it to your buyers list and let them decide the outcome. Make sure you have out clauses in your contract and that your goal is to assign the contract to another party. Maybe, once the seller sees or hears from real buyers that their price is too high, even tho they did some splendid work on the house ( ), they may be more willing to renegotiate to a more realistic price.
Nothing ventured, nothing gained

Hope this helps.

Andy Sager
DG's AndyS
CFIC and IE member

I would put this property in your back pocket and wait. Make the homeowner's try to sell their property for above market value and see what frustration it can lead to. Then in a couple of months, bring another offer to them with a potential buyer and see if time and reality has softened their position.

This comes across as a classic attempt to wish a sorry deal to become a good one. A motivated seller usually sees and accepts the situation they are in at the time. An unrealistic seller has not yet seen the light.

Do not get emotionally envolved with a property. When we do we often see things that are not realistic. This seller is not realistic. It is time to walk. He has your number when he is ready to face reality.

Go find your next deal.