Atlanta GA · Member since 2019 · 101 posts · 59 votes
Hi Guys, I visited this home yesterday. It sits in an area that makes its Comps around $260k.
it's a 3 bed 1 bath or at least it was before it became a rotten shell of damaged floors and nothing useful. This home will be gutted completely.
Spoke with seller and let him know I'm only interested in in the deal for the lot. And wouldn't pay his asking of $110k.
He kinda has a chip on his shoulder cuz he goes on to say "Anyway I'm not pressed to sell and you also need to show me you're a serious buyer"
Putting up a proper home on that lot would cost anywhere from $150k-$170k.
We're still in communication but I get the sense he's not in touch with the reality of his situation and is just stringing me along to get an idea of what his dump is worth.
What do you all think? Go ahead and put in an offer? Or just walk.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
6y
why should a seller help you and not themselves? It sounds like you insulted him, which isnt wise..... he obviously has no desire to sell so bugging him wont help unless you want to make a realistic offer....
why should a seller help you and not themselves? It sounds like you insulted him, which isnt wise..... he obviously has no desire to sell so bugging him wont help unless you want to make a realistic offer....
Ermm.. I'd like to know how you deduced that re: "sounds like you insulted him".
Just curious because all I've done is tell you what i feel he's thinking at the moment. I didn't even say anything about what I said or didn't say to him. Curious to be honest.
why should a seller help you and not themselves? It sounds like you insulted him, which isnt wise..... he obviously has no desire to sell so bugging him wont help unless you want to make a realistic offer....
So let me put this in context for you. I messaged the seller telling him I lived up North but would be like to see his home asap. Drove about 21 miles south to view. On arrival there was no one there as promised and home was locked. Waited 20 minutes (Wasn't bored actaully took time to view neighborhood and establish comps). He eventually called back and said he couldn't come but gave me info on how to "Get in". I did. Viewed the home, took a video. Told him his home was REAL DAMAGED. He countered by saying "My foundation is solid so I'm sticking with that price". I sent him the video and showed him a badly damaged foundation. Then he proceeds to say "I'm not pressed to sell. You need to let me know you're a serious buyer". To which I replied, I wouldn't drive 21 miles if I didn't really want to buy a home though. And he says "Fair point. I still think I'll stick with my original price but u can have your contractor take a look and then hit me up".
Okay, now you see the entire dialogue (was avoiding typing this). How do you reckon I insulted seller? Curious yet again.
He doesn't seem comitted to selling in my opinion. it's a gut feeling.
This is a sales problem you need to sell the seller on why he should sell to you. What is he gaining by selling to you. Ie. No longer has to carry liability I insurance on the property, no longer has to pay taxes on the property.
Look at it from his perspective and make a list of the silver linings. Flat out ask the seller what other than price is important to him?
Also if you plan to tear down the house completely and not build up from the existing foundation. Check with your cities building department you may have to run new water and sewer lines back to the main which can be costly if you didnt budget for it.
@Laurence Obi Have your contractor walk the house and give you their thoughts. Then present the offer to the seller explaining that significant work is required on the home. With the offer to show him you are serious, put down a good deposit. If he doesn't go for it, tell him he has your contact info and he can contact you if he changes his mind.
This is a sales problem you need to sell the seller on why he should sell to you. What is he gaining by selling to you. Ie. No longer has to carry liability I insurance on the property, no longer has to pay taxes on the property.
Look at it from his perspective and make a list of the silver linings. Flat out ask the seller what other than price is important to him?
Also if you plan to tear down the house completely and not build up from the existing foundation. Check with your cities building department you may have to run new water and sewer lines back to the main which can be costly if you didnt budget for it.
@Laurence Obi Have your contractor walk the house and give you their thoughts. Then present the offer to the seller explaining that significant work is required on the home. With the offer to show him you are serious, put down a good deposit. If he doesn't go for it, tell him he has your contact info and he can contact you if he changes his mind.
Actually spoken to my contractor and he's doing a walkthru on Monday. Will have a meeting with seller after that. It's a solid location. We just need to agree on pricing.
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
6y
People don't want to be real...they just want to be right. Focus on the seller's needs, no need to point out the flaws, make an offer that meets your criteria, and stay in touch.
Rental Property Investor · CA · Member since 2018 · 225 posts · 180 votes
6y
@Laurence Obi make the offer that makes sense, but don’t count on it either. There will be other distressed properties and some with more motivated sellers, you need to find the sellers pain, if they have some, then gauge their motivation.
@Laurence Obi make the offer that makes sense, but don’t count on it either. There will be other distressed properties and some with more motivated sellers, you need to find the sellers pain, if they have some, then gauge their motivation.
Thanks Bryan. This absolutely makes sense. Won't go above and beyond. There'll always be another opportunity.