OfflineA realtor gave me listings of distress properties around my area, but Im still new to this real estate business, so when I make offers do I make a written offer or a verbal one? My realtor dont want to work with me because im to young, so I im going to have to start making offers on my own. Its a multifamily (2 Units) that's priced at 85,000. I ran comps on Zillow and the houses that were sold (within 30-90 days) that were similar to the house I want to buy sold for around 220,000. I dont have nothing to lose so im just going to make my offer anyway praying that the seller accepts. If the seller does have enough equity in the house then im going to wholesale it. When I use the formula, what should my ARV be? Should it be the priced in the lower 200,000 or the upper 200,000s?
Offer on a Beach house
Posted on: Fri, 10/14/2011 - 00:31
You ABSOLUTELY need a written offer and a written contract. If agreements are verbal there is no way to prove the agreement exists, so you will no right to do anything with the property.
If a realtor doesn't want to work with you, find one that is experienced and willing to work with new investors, age should not hold you back from doing deals. You will go through many realtors, don't sweat it, keep looking, you will eventually find a good one.
Ideally you would want to sell 5-8k below the the best deal other buyers are getting for a similar home in similar condition. If you are sure that you can get 200,000 for the property, and it is a better deal than anyone else is getting for a similar home in similar condition, than go for it. I will say that is best to have a realtor run comps because you cannot always trust zillow and other websites like that. Try totalviewrealestate.com, it pulls info from a bunch of sites like that at once.
If you have any problems or you got a gut feeling that something isn't right while you're doing deal, post a question, the other members will be glad to help.
Good luck and best wishes!
RENinja
"Remember, success is a journey, not a destination.
Have faith in your ability."
Bruce Lee
Oh I know I have to have an offer written on contract. I should of rephrase my sentence. I meant to say should I call the agent up first and tell them I want to make an offer on the house, and from there give them a contract to prove their approval of my offer? Or should I mail them a letter saying that I want to make an offer on there house first, and from there they call me if they are interested in what offer I want to make on the house?
Thank You for the help
You would call or email the listing agent and give the address and/or MLS id number and tell them what you want to offer. Your offer should be accepted, rejected, or the seller sends a counteroffer to you(If you think that an agent is not submitting your offers, you can ask for the seller's rejection in writing with the seller's signature. I have heard of this happening a few times). Once accepted, you move forward with a contract. My understanding is that some states have a approved contract to be used in every real estate transaction. However, you can still make changes to the contract. With the help of an experienced RE attorney, certain things can be deleted from the contract or added in the addendum. Basically the attorney can help you make it your own contract. So you should ask the agent if they have an state approved contract they want you to use or if you need to write up your own.
Th DG family is here to help with anything you need!
Hope that helps!
RENinja
"Remember, success is a journey, not a destination.
Have faith in your ability."
Bruce Lee