Deal Of A Lifetime
Given:
gorgeous house on a golf course
ARV 649,900
seller is asking loan balance 520,000
actually repairs are about 5000 (replace couple of windows)
House is LISTED now, listing expires in 3 weeks.
Question:
How to market that kind of houses (gated community)? Should i ask for option/lease option (of course, no monthly payments from my side).
Tried to get the deed, did not work out 
Besides that they NEED to SELL by the end of june or they file foreclosure.
Thinking to offer:
1. wait till they get more motivated and ask for a deed closer to june
2. get an option from them, when they relist, but ask to exclude me from REALTOR`s agreement
Any advice is appreciated
Something doesn't add up. If the property is worth about $650,000 needing only $5,000 in repairs... and the Seller is willing to accept 20% less than market.... and it hasn't sold.... what's wrong?
A prudent speculator would first identify the as-is, fair market value. Then, he/she would find out why hasn't it sold.
[addsig]
they just want to move out!!!
one payment behind already.
comps are real 649,900
Then why hasn't it sold?
Sooner or later you'll have to answer that question. If the present owners (presumably super motivated) can't sell it with their real estate broker, why do you think that you'll be able to sell it?
I'm not suggesting that you can't.... but the old expression 'look before you leap' comes to mind when things don't add.
I used to reach arithmetic. Something isn't adding up right. Find the problem and your deal will either make sense, or it won't.
[addsig]
Well could be that the realtor isn't listing it for the 520K that they owe. Given the comps he's probably shooting more for the 650K mark. An extra 130K on price pads the realtors pockets with an extra $7800 - nothing to snuff at.
That's my point. If it isn't selling at the $650 mark.. maybe it's not worth $650.
It would stand to reason that if anyone were interested in the property, they would have made an offer. We know that the Seller would agree to $520.
If there have been no offers.... what's wrong?
So I think the point is to not be greedy with this deal, but find the place where it will sell FAST and do that. Perhaps in the high 500s, and you still walk away with $60k in your pocket, STILL a "deal of a lifetime".
Do not be greedy with this one. But do look DEEPER as SSP is suggesting, there could be something you don't know yet.
And why do they "just want to move"? Smells fishy... you need to take your PROFIT GOGGLES off and put your DETECTIVE HAT on, and get unemotional about it.
Then if it is all real, you will have plenty of time to celebrate when your profit is IN THE BANK. Right now it is only in your mind.... and thus is not grounded in reality... yet
whoops....re-read, I realize they are in foreclosure, which is why they are selling. But why won't they give you the deed? Lease optioning a big house like that is going to be tough to get payments above market rent.
I would try to get a purchase option on the property that is assignable, since they do not want to give you the deed
realtor has it listed for 550000
)))
been on the market for 2 months
apparently, she (realtor) is dealing in that country club, so she has 5-6 other properties
there was no traffic, so buyers are motivated
BUT: their question
1. when will you sell?
2. you don`t have the buyers lined up, so how will you find the byuer?
I think, the problem is they really want to try what i offered - option, but since the house is listed they DONT wat to talk to realtor about excluding me from the agreement. They are concerned thar R will get mad
The other problem is they can not decide!!!
I showed them no way to loose:
either i sell it or R
In my opinion this is the problem: they dont want to talk to the R and i don`t want to pay the commission.
Plus i would appreciate any ideas about marketing such high priced properties.
I will definitely follow-up on them when the listing expires (30 more days), and if they decide to relist, ask te exclude me from the R`s contract .
Right?
ibh,
I don't think that you're listening to the advice being given.
THIS IS NOT A DEAL.
At least not with what has been given so far.
You say that the ARV is $650K yet the seller's have it listed $100K below that and are unable to sell it. You say that there is $5k in repair work (mostly windows). Hmm, window replacement at a golf course, I wonder how often you'll have to do that?
Main points here:
1) I doubt that $650K is the real value of this property. If it's listed for $100k below that and hasn't sold yet, then it's either overpriced, you're missing something big, or the RE agent is so sorry that they didn't even bother to put the property on the MLS.
2) If the real FMV is closer to the $550K asking price, then you've only got $30K to play with. At this price range, that is chump change and will be gone before you know it.
3) You don't know how to get rid of a property that that value. What are you going to do IF the seller's do accept? Can you make the payments until you find a buyer?
Roger
You still didn't answer shortsalepro's question, and with your new info that it is listed at 550,000 his point is that much more valid. If it's worth 649900, the house should be sold, why isn't it?
The sellers question "how will you find the buyer?" is a valid question, what was your response? What can and will you do that the realtor can't or hasn't done? Do you have prior experiences that you can refrence to show you are capable of accomplishing the job? Are you experienced in REI and come with a list of contacts? Do you move in a circle of people that allows you to come in contact with those who buy houses in that price range, thus giving you intimate access that a realtor might not have? What is your advantage?
You have asked how to market the property, so I'm guessing you aren't really sure of your ability. The sellers probably picked up on that vibe.
I just passed on a similar deal, albeit not in the same price range. House in a 55+ retirement community, golf course, activities, the whole nine yards. House needs no repairs.
Listed for a YEAR, no takers. Price reduced 4 months ago by $30K, still not sold. I'm asking myself why it won't sell.
Called another RE agent (not the seller's agent) and asked about sales in the development. Discovered they're still building houses there, brand new, for less than seller's asking price and will be for another year or 2. Agent's opinion is it's a great buy and hold area (not what I'm interested in), but not great for a flip or sub 2.
Listen to the advice above, especially about becoming a detective--dig deeper into the reasons it's not selling.
Also good advice from above: L/O would not seem to be good strategy: who's your market for "renting to own" with that monthly nut?
Last, I sense a little "greed factor" in your post: if there was that much money in the deal, why wouldn't you work with the seller's agent and pay the commission (outside of general creative investing principles)? Granted it doesn't seem like she's a ball of fire, but if you could light a fire under her and get something done, wouldn't that be worth her commission and still leave enough for you?
andy[ Edited by arytkatz on Date 05/06/2004 ]
I like to think that a house is really worth what it will sell for in 60 days. For me this is the best way to evaluate a property. If you have MLS in GA then I am sure that many people saw the house at 550. People aren't stupid and you are looking to make 100K more than you are being realistic.
[addsig]
In this market, homes often get stigmatized if they are on the market more than a month. Sometimes it can be the wrong color paint or whatever. However, I am suspicious no one has jumped on this yet.
I wouldn't assume it just needs windows until you've had a professional property inspection.
Best of luck with this one.
Thanks, everybody.
))
Say the truth, you really cooled down my enthusiasm
But i will investigate this deal deeper and will keep you updated if anything works out!
Minor point to the original post.
Besides that they NEED to SELL by the end of june or they file foreclosure.
They do not get a choice as to filing for a foreclosure. The lender makes that decision.
They might be thinking that they will file bankruptcy. They do have the choice on that.
If they go that route and the property was sold under FMV the court has the option to rescind the sale. [Prevents people from hiding or disposing assets just before bankruptcy.]
John
what make anyone think the BANK will accept the lower price?
CJ
I would probably say that the bank would have a different attitude about pricing than they had 6 years ago when this was first posted.
John (LV)
By several hundred thousand??
Quote:
On 2010-08-24 14:09, jfmlv1950 wrote:
CJ
I would probably say that the bank would have a different attitude about pricing than they had 6 years ago when this was first posted.
John (LV)