Biggest Mistake in REI

[Belinda D.]

I just made the BIGGEST mistake in REI.
-spoke to non-motivated seller about buying his tear down house (approx lot size 86 X 109). Sqft 1400 -1500 sqft. He's non-motivated because he said he's in no rush and he will not sell for less than 650K to 675K

-COMPS were hard to get (agents v. tight lipped if they are not in on a deal). I estim COMP to be 510K-520K (based on 2 sold prices in the area for similar old houses) and I told seller property is worth 510K-520K. I estim land value @ 368K, but told seller 301K

-I previously called a couple builders, saying I plan to buy the lot & how much would they pay if I sell it to them. I did not give the address. One builder called me today, I gave him the lot size. He said he would pay 500K, 500K up or 500K down, but has to see the lot first. I STUPIDLY gave him the street intersection and he told me lives on the street. He said if I do not do anything about purchasing the lot myself, he is going to approach the seller. I asked him to give me until this Friday. He said OK. I know he's going to go around me regardless.

I called the seller to let him know there's a builder/buyer for 500K, but got his voice mail. STUPID mistake #2, I did not factor in my fee, I just told the seller 500K

The 70% rule definitely does not apply in this case, because the market in the area is extremely hot. Lots of million dollar plus new builds.

I am hoping the seller will call me & agree to sign the Contract, but I am sure as soon as the builder put down the phone he rushed to the lot and left an offer letter @ the door.

This is REALLY a hard one to swallow, but I should have known better. Excitement got the best of me and my MOUTH.

[George C.]

Belinda,
That's not a "big mistake", just merely a learning experience. A big mistake is getting caught with a hot potato you can't sell and or afford.