Meeting With Seller Tomorrow....got A Few Questions
I'm meeting with the seller of a 4 unit apt bldg. tomorrow. The bldg is vacant and owned by a realtor who never rented it out........This is perplexing to me. He lived there briefly and then moved 2 hrs away. The projected rents are 27k per year.....based on the area. Should I still consider this? I just can't get over when a realtor wouldn't have rented it out....
I used to think this way. I used to think, why would someone sell something that is cashflowing for such a low price that I am offering. The truth is people are in different mindsets, education levels and motivation that you are. I would certainly meet with him and if the numbers work, buy it, and then not worry about why they couldn't make it work.
GL
[addsig]
Listen carefully during your conversation and ask leading questions to get as much info as you can about some problem that may be underlying his need to sell. Though it's likely just some personal/ambition issue, if it has to do with the property (bad roof, compromised foundation, termites, etc.) if would be good to get him/her to let it slip out. Don't forget an inspection contingency. May not hurt to ask things like "so, renting in this area is pretty tough, then?" How they answer could be telling.
There is a very good possibility that there are code enforcement violations on the building and "do not occupy" orders on the units.
Make sure to do a freedom of information act at the town office and check the file on the property! It'll take you 15 mins and you could learn a lot about the property history.
Have you seen the place yet? If not might be the answer your looking for. Might be problems might not before you go and meet the seller tommorow call Building Dept or Code enforcement to find out if there is and violations on the building before you even go and do the meet. Then call and see if all the bills are current on it. I would do all of this before I meet with the seller
if you are meeting with a broker-owned listed property, i'd certainly meet with him,,but also,,tell him,,you want a "buyers" broker, to work on YOUR behalf,most buyers brokers dont cost anything, if the property is listed, the commisions are split between listing and buyer broker, now, you could also ask him,,(being a broker) if he would be YOUR broker also,,, with a brokerage agreement, you being the CLIENT, why?? if he does REPRESENT you, he has to put your interests above his, and he is binded by a fudiciary duty, to disclose all material facts about the property, or he could be personally liable, if he doesnt want to be YOUR buyers broker, then get an area buyers broker,,to even the playing field, and ask that broker a ton of questions,,that buying broker will tell you if the deal or property is a good investment, and also,,he will push the owner for many many details and questions about the property
good luck,,,
p.s. but also keep an open mind, the other reply, about different motives for selling is correct,,,,,and dont forget about the buyers broker,,that represents YOU.
Rick
While I agree with some of what "mainebrokerman" had to say, he is mistaken about a couple of things. I don't know how they do things where he is from but here in Pennsylvania the seller MUST provide a buyer with sellers disclosures. It is the law. If he doesn't have these, something is wrong because as a broker he should know this. Also because he owns this property it would be a conflict of interest for him to be a buyers agent . At best it would be a Dual Agency, which means he can't favor one party over another in negotiations. This works when the agent doesn't have a financial stake in the property, but he does and so really he shouldn't be considering doing this. By all means go to another realtor and ask them to represent you. Even though this broker is selling his own property, he should have given you a Consumer Notice, when you come to see the property, this details all of your rights in Pennsylvania regarding a relationship with a realtor. (Which he is) Good luck if you any questions, please e-mail me.