Question to sell my home "as is"

Wholesaling
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Question to sell my home "as is"

Meshia Smith
Member since 2019 · 12 posts · 0 votes

I am interested in selling my current home cash/as is to an investor or wholesaler. After some major research, I landed upon a local guy here (Memphis) who seems to have a decent rapport and following. He has seemingly been in this business for some years. I reached out to him and expressed interest in selling my property of 17 years. It does need work/repairs and inquired as to how we could possibly move forward. He asked for the address. I provided it. He followed up with "Do you have a price in mind if I can get you cash next week?" - Since I've never reached out to anyone or done this process before, I replied "I have not landed on a definite price". ALL he said was "Let me know when you have a number in mind". That response somewhat stunted me as a newbie reaching out to someone for the 1st time. He didn't ask if we could speak further or if he could view the property in person, (although I'm sure online he can see a limited outdoor view), nor ask for my contact info, email address NOTHING to go from there regarding negotiations. I almost feel deflated before even starting. Is that the norm when reaching out to an investor or wholesaler? In my research, I read a lot about initial transactions, but this isn't quite what ANY of the scenarios presented. How do I move forward? Does this mean he's just not interested? Do I just reach out to someone else altogether? Or follow up with him on a price? Or is this some kind of waiting game tactics investors use?? Or is it common practice to already have a price when you're not used to this industry? I am truly confused. 

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Lydia R.
Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes
7y

@Meshia Smith Typically an investor wants to know if they are in the same ballpark as the homeowner before they invest a lot of time or energy into all the research that goes into putting a house under contract. Usually if the seller isnt willing to give at least a range of what they would like to sell their property for then the investor interprets this as the seller not being serious about selling. Let me put it into perspective, if you went to a car dealership and saw a car that you liked and asked the salesman how much and they said I dunno, how much would you pay for this car? How would you feel about that interaction? Its the same thing when a homeowner contacts an investor.

I think in most negotiations the homeowner thinks that the investor would be willing to pay more and the seller is afraid of leaving money on the table, which is a valid concern, but most investors are really trying to pay less. I always ask my seller what they want and we start from their number. If its fair then I wont negotiate too hard because they are being fair and reasonable. If they want 300k for a house that will only sell for 310k fixed up then I know we are going to be too far apart and I dont want to waste their time.

I think you should weigh your options. If you have an idea of what you want for a house then call some local investors and tell them what you want. If they give a lot of push back or their number is drastically different from yours ask them to send you some comps to support it. As others have commented, you can also get a realtor. Make sure you ask a lot of questions before you sign anything and also make sure you understand what you will be netting at closing and compare that to what an investor would offer and make a decision on what works best for you. Dont let anyone pressure you into making a hasty decision. Good luck! Feel free to reach out if you have any more questions!

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  • Danielle Wolter
    Rental Property Investor · San Diego, CA · Member since 2019 · 290 posts · 254 votes
    7y

    @Meshia Smith Do you not have a price that you're willing to take? I would think it would help to have a number in mind that you need for the house. 

    1Reply
  • Meshia Smith
    OP
    Member since 2019 · 12 posts · 0 votes
    7y

    Yes, I have a "round about" price but nothing definite. That said though, I didn't know to throw out a random amt not being sure. This was a less than a 1-min exchange so I guess it threw me off. I was under the impression he'd need or want to see the property 1st.

    0Reply
  • Kevin Sobilo
    Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    7y
    @Meshia Smith, hire an agent. If you are not even remotely comfortable dealing with this hire someone who is.

    Not only could it be a large difference in price, but also to protect you from liability.

    For example, "as-is" means a few different things and is poorly understood by most people. Many people think of it as being like selling a car "as-is" where the thinking is that its up to the buyer to beware. However, in my state (and probably most states) a seller has to disclosure any known material defects with the property. Exceptions to that would be situations like foreclosures or estates.

    So, something as simple as not understanding your legal responsibility to disclose material defects could leave you open to future liability.

    Hire a professional agent and they should be able to guide you with regard to these sorts of things.
    1Reply
  • Meshia Smith
    OP
    Member since 2019 · 12 posts · 0 votes
    7y

    @Kevin Sobilo thank you so much for this suggestion.

    0Reply
  • Trenton Miller
    Contractor · Coachella Valley, CA · Member since 2017 · 252 posts · 176 votes
    7y

    @Kevin Leahy 

    @Meshia Smith

    Some states do have to disclose known material defects, others do not (i.e. North Carolina).  In states that do not require disclosure or "No Representation", it is the buyer's responsibility during due diligence to uncover defects through inspections, ect.  "As is" in this scenario is referring to the seller not negotiating repairs and or credits to the buyer at the time of purchase.

    0Reply
  • Lydia R.
    Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes
    7y

    @Meshia Smith Typically an investor wants to know if they are in the same ballpark as the homeowner before they invest a lot of time or energy into all the research that goes into putting a house under contract. Usually if the seller isnt willing to give at least a range of what they would like to sell their property for then the investor interprets this as the seller not being serious about selling. Let me put it into perspective, if you went to a car dealership and saw a car that you liked and asked the salesman how much and they said I dunno, how much would you pay for this car? How would you feel about that interaction? Its the same thing when a homeowner contacts an investor.

    I think in most negotiations the homeowner thinks that the investor would be willing to pay more and the seller is afraid of leaving money on the table, which is a valid concern, but most investors are really trying to pay less. I always ask my seller what they want and we start from their number. If its fair then I wont negotiate too hard because they are being fair and reasonable. If they want 300k for a house that will only sell for 310k fixed up then I know we are going to be too far apart and I dont want to waste their time.

    I think you should weigh your options. If you have an idea of what you want for a house then call some local investors and tell them what you want. If they give a lot of push back or their number is drastically different from yours ask them to send you some comps to support it. As others have commented, you can also get a realtor. Make sure you ask a lot of questions before you sign anything and also make sure you understand what you will be netting at closing and compare that to what an investor would offer and make a decision on what works best for you. Dont let anyone pressure you into making a hasty decision. Good luck! Feel free to reach out if you have any more questions!

    2Reply
  • Barry Pekin
    Specialist · Purcellville, VA · Member since 2015 · 1k+ posts · 841 votes
    7y

    @Meshia Smith,

    Wholesalers often have to decide quickly if the person they are talking to is motivated to sell their house or just kicking the tires.  If they spend a lot of time talking to one person who isn't ever going to pan out, that's time wasted.  Asking the seller what they want to sell for is a starting point.

    That said, it's not uncommon for a seller not to be sure what they want for their house, or they may also be afraid to be the first person to mention a number.  It's often said, though not necessarily true, that the first person to mention a number loses.

    If I'm talking to a seller and they won't give me a number, I'm not just going to end the conversation there.  It seems like that's going to lose a lot of potential deals.  I would continue on with the conversation.  After all, money isn't the only thing that needs to be discussed.

    If I was talking to anyone, even a car salesman, and they abruptly ended the conversation like that, I'd be surprised and then move on to someone else.

    I do think you need to look at your motivation.  Are you in a hurry, or do you have plenty of time to make the decision?  Wholesalers are usually there to help with problems.  I was taught that, "We're not in the real estate business; we're in the business of solving problems where real estate is the solution."  You might be better off going with an agent.  Or not.  That's up to you.  Do you need to sell quickly where money isn't your top concern, or are you able to take your time to look for the best offer?

    1Reply
  • Adam SchneiderPro Member
    Lender · Raleigh, NC · Member since 2012 · 957 posts · 639 votes
    7y

    @Meshia Smith . You ask a very good question about whether to be hesitant about the person, as well as what to expect. If you are uncomfortable with the person you are talking with, don't do business with the person. If you were to list on MLS, you (the seller) would post a price that you'd like to sell for, and then people would do their research...then visit the home, then make an offer. Not much different than this investor asking you for a price first. That question about your ballpark number is helpful to save everyone time. Some of the comments back on your post are talking about getting a real estate agent. If you are uncomfortable with the FSBO process as a seller, that's a good option to consider.

    2Reply
  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    7y

    The fact you don't have a number (negotiation tactics aside) shows lack of motivation. Investors don't like tire kickers. 

    Selling a property off market can be a big win win for both parties. If I was you I'd reach out to the investor and start the conversation over. You could invite them the property, give them a number, and wait for a response.  

    Don't say a word until they say something back. 

    0Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    7y

    @Meshia Smith If you want to sell your house Quickly, and for the Best Quick Sale price...your best Is to list it with an agent on the MLS. It will be seen by Dozens of cash investors/flippers. You will absolutely get the best price that way and sell it quicker than calling random wholesalers who will turn around and retry and to sell to the 3 or 4 real buyers they have.

    Been there, done that.

    1Reply
  • Meshia Smith
    OP
    Member since 2019 · 12 posts · 0 votes
    7y
    0Reply
  • Meshia Smith
    OP
    Member since 2019 · 12 posts · 0 votes
    7y

    @Jaron Walling No, it's not that I didn't have an overall price in mind (at all), I could have done better with the response maybe but it also needs to be reminded that this was like a literal 45 second to a minute exchange. I wouldn't have known with no experience that it's asked right off the back. Some posters here did offer some perspective, and that's what I will consider when I reach out to someone else, thanks. 

    0Reply
  • Meshia Smith
    OP
    Member since 2019 · 12 posts · 0 votes
    7y

    @Danielle Wolter 

    Yes, I have a "round about" price but nothing definite. That said though, I didn't know to throw out a random amt not being sure. This was a less than a 1-min exchange so I guess it threw me off. I was under the impression he'd need or want to see the property 1st.

    0Reply
  • Lydia R.
    Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes
    7y

    @Meshia Smith You are very welcome! Glad I could help you!

    0Reply
  • Meshia Smith
    OP
    Member since 2019 · 12 posts · 0 votes
    7y

    @Barry Pekin
    Thank you kindly for understanding. That's exactly what it was. I AM a motivated seller, just inexperienced. I'm glad you noted that my response is not uncommon. I DO have a number in mind now, so I can use a starting point. I am at trying and will take this as a learning lesson so that I can move forward. I do agree, the method of his response was off putting, I think you got the point that I was making about how abrupt it was. I felt moreso cutoff short. I agree that had it been me, I would not have cut a potential seller so quickly. I likely would have given them a sec to think about it but if the followup seemed iffy, then I'd move on. However, I will take note and continue on this journey.



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  • Barry Pekin
    Specialist · Purcellville, VA · Member since 2015 · 1k+ posts · 841 votes
    7y

    @Meshia Smith,

    Good luck!

    0Reply
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