New to Real Estate · San Francisco, CA · Member since 2017 · 23 posts · 17 votes
Hey BP Fam!
I'm trying to get a property under contract right now. I toured the house with the seller today - it's a probate property, and it would make a great, low-risk investment.
After I toured the house with the seller though, he told me that although I'm the first person to reach him, he's interested in hearing other offers too. This is a situation I've been in a number of times, actually.
Besides giving them a great deal, what negotiation tactics do you all use to lock in a deal?
One idea I have is: when I deliver my offer tomorrow, see what the seller says. If they need time to think about it, I'll say, "Mr. Seller, what price would I need to offer to get you to sign the papers today?"
Is the seller the PR (Personal Representative) of the estate? Has the PR been confirmed by the court to represent the estate? Ask the PR to see Letters of Administration or Letters Testamentary.
If the PR cannot provide the document then the probate process (Administration) is still continuing then you'll know why one of the reasons the seller is stalling but keep in touch with the PR as you'll want to create a buyer/seller relationship..
First do you know for certain that it's low risk. Probate properties can take awhile depending whether or not they need court confirmation or not. I don't alot about dealing with probate properties but that bit of information I do know. If it doesn't then you may have a good deal on your hands. Earlier this year, I had a deal where I was going to fund a client for a probate property but it required court confirmation. He pulled out because it was taking too long for the court confirmation (relatives couldn't agree on the money split) and he was tying up for a deal that was taking too long to get done. So the deal was dead.
@Hunter Wolfe Great question! It all depends on the motivation of the seller. How motivated is the seller? What are the reasons he is selling? Does he have a deadline? Is he moving or getting a divorce? Why did the seller not take it to an agent?
Hopefully you asked a lot of questions and found out his true motivation. Offering more money may not make the seller happy. If the seller needs to move fast maybe you can offer a higher downpayment so he his moving expenses are taken care of. If the seller wants to sell fast, then perhaps emphasize that you have a contract ready and you can close within xx amount of days. Hope this helps!
Is the seller the PR (Personal Representative) of the estate? Has the PR been confirmed by the court to represent the estate? Ask the PR to see Letters of Administration or Letters Testamentary.
If the PR cannot provide the document then the probate process (Administration) is still continuing then you'll know why one of the reasons the seller is stalling but keep in touch with the PR as you'll want to create a buyer/seller relationship..
First do you know for certain that it's low risk. Probate properties can take awhile depending whether or not they need court confirmation or not. I don't alot about dealing with probate properties but that bit of information I do know. If it doesn't then you may have a good deal on your hands. Earlier this year, I had a deal where I was going to fund a client for a probate property but it required court confirmation. He pulled out because it was taking too long for the court confirmation (relatives couldn't agree on the money split) and he was tying up for a deal that was taking too long to get done. So the deal was dead.
First do you know for certain that it's low risk. Probate properties can take awhile depending whether or not they need court confirmation or not. I don't alot about dealing with probate properties but that bit of information I do know. If it doesn't then you may have a good deal on your hands. Earlier this year, I had a deal where I was going to fund a client for a probate property but it required court confirmation. He pulled out because it was taking too long for the court confirmation (relatives couldn't agree on the money split) and he was tying up for a deal that was taking too long to get done. So the deal was dead.
Great suggestion. In this case, it's definitely a good probate deal. There's only one personal representative, and nobody is contesting the estate. His court date is in June, but he's cool with going under contract before that. It's low-risk, because the price he's asking for leaves us with a big margin for repairs.
Is the seller the PR (Personal Representative) of the estate? Has the PR been confirmed by the court to represent the estate? Ask the PR to see Letters of Administration or Letters Testamentary.
If the PR cannot provide the document then the probate process (Administration) is still continuing then you'll know why one of the reasons the seller is stalling but keep in touch with the PR as you'll want to create a buyer/seller relationship..
Thanks for sharing this. Yes - he is the PR, but his probate court date isn't until the start of June.