OfflineThis is what I planned on emailing to an agent about a house I was interested in. If I'm telling too much information or not really phrasing it right please let me know. The reason that I give a breakdown near the end of what I was going to do is because the agent is, well, aged. 82 I believe. So anyways please, if I'm doin something wrong tell me!!
After carefully considering options I.ve come about with an offer of $$$$$$
Here is how I came to that amount:
I liked how big the lot actually is but in that area of town it's most definitely going to need some fencing.
The siding needs replaced
The deck needs repair/replaced
Living Room floor needs repair/replaced
Kitchen needs Cabinets
Most areas in the house need carpeting
Attic Stairs need repair/replaced
Since your selling AS-IS I propose this I'd like to sign a Contract for Deed with these terms:
Owner holds the note
$$$$$$ with interest based on prime rate (3.25%) for 5 years.
Payments of $$$$ Monthly (Includes Interest)
Earnest money will be equal to commission for agent and shall be due upon refinancing of the house
Upon refinancing of the home the remainder of what is due on house shall be paid.
If ever defaulted, all payments are forfeited and deed returns to Note Owner.
No reimbursement for repairs made.
Basically, I'd like the owner to hold the note and if I ever default on the payments then he takes the house back as long as he owns the note, with it any repairs I made and I don't get reimbursed for them. The commission for the agent shall be payed upon refinancing of the home. I do plan on renting the house out again, however it's a different situation because I don't intend on relying on the renters to pay the rent. Payments come out of my pocket first. Worst comes to worst for the owner, they get the house back in better condition then they originally sold it as. I plan on refinancing the house as soon as it's up to shape and a renter is in place. I figure it should take no longer then 3-6 months. So a little under a year the owner can get the remainder of what is due plus the interest until that becomes a reality.
If the owner is satisfied with these terms, I can have a contract written up within the week.
Thanks again for your time, and please!!! CRITICIZE!!!
Knowledge is Power
- Pimpedoutgeese
Allow your fear to gently pass. Then genuinely ask yourself,
“What needs to be done?”
Earnest money is "up front money" to hold the property. If you are going to do as you say, don't call it earnest money. I don't think the listing agent's Broker will agree to wait until the property is refinanced to collect their commission. The seller will owe the Broker a commission, even if you default on the deal.
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
I see, so the commission should be up front if I'm going to call it earnest. I get it, I just thought I could do that. Ok. I'll change that up. THANKS!!!!
Anything else you guys see?
Knowledge is Power
- Pimpedoutgeese
Allow your fear to gently pass. Then genuinely ask yourself,
“What needs to be done?”
I submitted my offer and they declined... but I'm not sure what they are saying no too....
The realtor said that the owner came back with full price and that he was insulted with the low price.
I'm surprised because the realtor didn't say anything about the owner financing! That makes me happy if that's the case... They wanted 28K I offered 17K with a list of why I felt this price was acceptable. I was thinking of coming back with my final offer of 20K and then if they say no just let it go...
HOWEVER
Besides numbers... What ELSE should I research about the house? Title? I'm not sure... I just want to make sure before I submit my offer and it get accepted so I'm not jumping into something crazy.
Thanks for the help guys!!!
Knowledge is Power
- Pimpedoutgeese
Allow your fear to gently pass. Then genuinely ask yourself,
“What needs to be done?”