Rehabbed Property - Need Advice
I recently rehabbed a property and am now trying to market it. I am selling it myself and not using a broker. I listed it higher than the comps in the area but was still able to get multiple offers at or just below asking. i think because.. 1) I did a nice job putting in nice wood floors and nice countertops, etc. 2) the unit itself is very unique and desirable 3) a new public train station just opened up that easily connects to other major transportation.
My issue: I first accepted an offer 10K above asking.. he flaked. so i go down the list of potential buyers.. the next guy was at asking with 20% down.. doesn't hear from him.. then the next person wants to know when i bought it, how much renovations i did.. etc. and i am thinking that it wouldn't fly either..
at this point, i am tempted to just go down the list of those who offered and move on. but i am also tempted to re-list it at a higher price.
should i:
a) just take the buyer just below asking who's ready to close...
b) work with a wishy-washy person who's willing to give more.
c) re-list at a higher price and demand a serious buyer with at least 20% down.
I would like to hear other options as well. I am not interested in lease/option though. should i get it appraised?
should i have to justify that i was able to purchase below market b/c the seller at that time wanted to close quickly and i was able to meet his wish?
thanks for your inputs.
I would not waste any time with anyone who is wishy-washy. How much lowver are the other offers? If the offers are much lower then I would consider listing it with a broker. A broker should be able to pull comps for you.
My thoughts:
I certainly would close with the person ready to. You got exactly what you were asking for (probably more because you listed it a little high).
There is no need for greed although I understand the feeling of "maybe I should have asked for more" when you get everything you wanted without effort origionally.
There are more and more deals out there for you. The opportunity cost that you are facing daily is eating into the profits of the next deal!
Bottom line--close ASAP and take the cash to your next project.
GOOD LUCK
the offer was only 2k lower than asking.. but if i take that, which i am really considering (i haven't yet due to the wishy-washy and perhaps rethinking of listing it higher), what should I tell her to provide in order to ensure a speedy closing?
i dont want to go with a broker b/c there are too many new agents around who are learning the ropes. the property is on the lower end and no doubt the broker will assign it to someone junior. the agent who showed me this property had very little clue. but she did show me the apartment which i am grateful for. but at 6%, i'd rather keep for myself.
Quote:
On 2004-12-02 10:32, karensilver wrote:
I would not waste any time with anyone who is wishy-washy. How much lowver are the other offers? If the offers are much lower then I would consider listing it with a broker. A broker should be able to pull comps for you.
thanks,
i needed reinforcement on this option. what should i do next? ask for a deposit and have the person get a lawyer? how should i make the closing fast and easy for the both of us?
many thanks
Quote:
On 2004-12-02 10:41, myfrogger wrote:
My thoughts:
I certainly would close with the person ready to. You got exactly what you were asking for (probably more because you listed it a little high).
There is no need for greed although I understand the feeling of "maybe I should have asked for more" when you get everything you wanted without effort origionally.
There are more and more deals out there for you. The opportunity cost that you are facing daily is eating into the profits of the next deal!
Bottom line--close ASAP and take the cash to your next project.
GOOD LUCK
Look at using the closing company that you used when you bought it. That should save you time and costs since (I assume) they did a title search for you when you bought it. Have the buyer work with them and stay on top of everything since you are not working with a RE agent.
[addsig]
Would that post a problem if my lawyer has significant interest in the title company that i used when i bought the place? the buyer might think something fishy is going on..
Quote:
On 2004-12-02 15:19, winuinc wrote:
Look at using the closing company that you used when you bought it. That should save you time and costs since (I assume) they did a title search for you when you bought it. Have the buyer work with them and stay on top of everything since you are not working with a RE agent.
You can request do several things to protect your self.
Request higher Earnest Money, Request a Pre Approval letter instead of pre-qualified, set a date they must close by, ect, ect.
Using the title company your lawyer has interest in should not pose a problem, you can simplely state you are willing to pay XX amount of dollars of that fee equal to what you would have paid with your title company and they can chose another one or go with your choice.
I will not write a contract without a preapproval or prequalify letter and talking to the loan officer. I speak to their loan officer and ask what lender or program will they be using and tell them that I am investor and have only had the property for 3 months, will there be a problem with seasonsing?
Do not get it appraised. Do not ask for more than a couple of thousand earnest money. The earnest money is made out to the closing agent and they need to take the check to the closing agent in certified funds.
There are contracts that you two can fill in the blanks yourselfs without having to have an attorney.
Brenda
put a clause in the contract that states their earnest money becomes non refundable after 2 weeks ,when they flake for whatever reason at least you are holding some cash
it sounds like you have offers that are in range of your asking. take one. move to the next. don't let a nickel hold up dollars.....................kenmax
Thank you all for your replies.
I think i will go with the lower offer and move on. The wishy washy person wants to go on a 2 week vacation... so that is a bad sign. i'll also won't waste the time re-listing again.
Thanks TCI members.
2k less then asking doesn't seem so bad. Talk to the lender on a regular basis to make sure everything is going as planned.