Flipper/Rehabber · St Petersburg, FL · Member since 2016 · 44 posts · 14 votes
Owner says he owns the property free and clear. There are 2 other people on the title.
Property is vacant (despite some homeless guys) and in a bad shape. We agreed on the price, numbers worked, I sent him standard 1 page agreement, and he hadn't called me for a week. Later we agreed to increase our offer (and reached MAO) in terms of getting signed contract within 72 hours. Another week passed by.
He answers the phone acts like a busy person and apologizes, says he still wants to sell it to us and promises that he'll get it done tomorrow (same on every phone call).
Is that some type of new scam? Would you still chase the deal?
Owner says he owns the property free and clear. There are 2 other people on the title.
Property is vacant (despite some homeless guys) and in a bad shape. We agreed on the price, numbers worked, I sent him standard 1 page agreement, and he hadn't called me for a week. Later we agreed to increase our offer (and reached MAO) in terms of getting signed contract within 72 hours. Another week passed by.
He answers the phone acts like a busy person and apologizes, says he still wants to sell it to us and promises that he'll get it done tomorrow (same on every phone call).
Is that some type of new scam? Would you still chase the deal?
You're still in negotiation stage, only YOU don't know it.
Put all the terms you want in a list. Include terms that address how you want to benefit from the property problems, including title. Think it through. Be ready to give the list to escrow.
Then, call you seller and ask him if he's ready to go to escrow. What date does he want to close by? Ask him how long it will take him to deal with the BIG problems. He'll ask, 'What big problems as are you talking about?'
You'll tell him that there are others on title and they must sign off now (before) or during escrow and split the proceeds accordingly.
His tone will change now that you're talking about the character of the seller by implication. He wouldn't be trying to leave out the other owners, right? Of course not!
Your job today is to find the confidence to call him on his BS without insulting him.
Rental Property Investor · Tucson AZ / Nice FR / Washington DC · Member since 2016 · 1k+ posts · 1k+ votes
9y
People will give you the run around. Just toss it on the back burner or call him up and inform him your going to withdraw if it's not delivered by some set time that day. Bring him the contract. Leave no room or reason that they don't return it. I find if most people wont get a contract on the table in 2-3 meetings/calls, they are just wasting everyones time.
Real Estate Investor · Shelton, WA · Member since 2013 · 369 posts · 639 votes
9y
@Lukas Vanagaitis Make sure your contract has an "Offer Expires Date" and emphasize that in your communication with him. Follow up if necessary, but don't chase him. Deals are like dating, if you show them how bad you want it, they'll realize they've probably got better options
"Dear Seller, here's our offer, its good for 72 hours. Have a nice day".
Flipper/Rehabber · St Petersburg, FL · Member since 2016 · 44 posts · 14 votes
9y
Thanks, yes, I try to hold my cards.
On the phone he sounds very motivated and agrees with a price, doesn't have any questions but I agree, it seems like he's just wasting everyone's time. I have offer expire date which I changed twice already. 😄
Columbus, OH · Member since 2015 · 117 posts · 175 votes
9y
You do not have an executed contract unless you have signatures from all parties that appear on title as Owner of Record. No title company will process the transaction without signatures from all parties. The only exception is if the owner of Record is deceased and you're dealing with the executor of the estate.
Do you have all three owners signature on the sale contract? If not, you don't have a contract! If you do have all three one of them may be having sellers remorse.
Owner says he owns the property free and clear. There are 2 other people on the title.
Property is vacant (despite some homeless guys) and in a bad shape. We agreed on the price, numbers worked, I sent him standard 1 page agreement, and he hadn't called me for a week. Later we agreed to increase our offer (and reached MAO) in terms of getting signed contract within 72 hours. Another week passed by.
He answers the phone acts like a busy person and apologizes, says he still wants to sell it to us and promises that he'll get it done tomorrow (same on every phone call).
Is that some type of new scam? Would you still chase the deal?
You're still in negotiation stage, only YOU don't know it.
Put all the terms you want in a list. Include terms that address how you want to benefit from the property problems, including title. Think it through. Be ready to give the list to escrow.
Then, call you seller and ask him if he's ready to go to escrow. What date does he want to close by? Ask him how long it will take him to deal with the BIG problems. He'll ask, 'What big problems as are you talking about?'
You'll tell him that there are others on title and they must sign off now (before) or during escrow and split the proceeds accordingly.
His tone will change now that you're talking about the character of the seller by implication. He wouldn't be trying to leave out the other owners, right? Of course not!
Your job today is to find the confidence to call him on his BS without insulting him.
Flipper/Rehabber · St Petersburg, FL · Member since 2016 · 44 posts · 14 votes
9y
We have all contingencies in place, it's all good, offer expired twice. We have done our homework, checked the title, etc, and that's why I posted here - on the phone it all sounds good he agrees with everything and promises to sign "tomorrow", doesn't have any problems, just acts very busy.. And to be honest, I don't understand why you wouldn't want to sell your property where you don't actually live, where windows are boarded up and the property is destroyed. Quick notice, we offered similar price what he paid 5 years ago so he wouldn't loose anything.
Developer · Hobart, IN · Member since 2014 · 773 posts · 225 votes
9y
Every seller wants to try and hold out for a better price. However there always comes a time when they realize they have to just get rid of the property. Whether it's a private person, a bank or an asset manager at some point they will just want rid of the property. That being said I think the harder you pursue them the more they know they have a good deal and could continue playing hard ball. I would let the guy go for a while let the role reverse and let him start calling you. Tough when the seller knows they have a good property but it's all numbers at the end of the day. Best of luck hope it works out.
Property Manager · Griffith, IN · Member since 2015 · 1k+ posts · 913 votes
9y
I'm going to second what @John Mathewson is saying. If you sound too desperate, seller starts to question the sale price. It's like you're trying to push it through before seller realizes how much money was left on table (not saying you are but sellers may interpret it that way).
At this stage of the game, seller may be shopping for a higher offer. I'd tell the seller you are a serious buyer and give him best offer. Let him know he can take it or leave it (and you'll be okay either way). But also let him know that if he comes back in a month, that offer may be the same or it may change. Puts the pressure back on them.
Finally, have an abundance mentality. Some do, some don't, who cares, who's next! Do whatever you need to do to fill your pipeline so you're too busy to deal with sellers like this. Spend time with better prospects and put this guy on a follow up sequence.