All Forum Posts by: Katherine Roberts

Ok… ok… we get it… who cares about the history of the property right…? 

It does not matter but it will give you insight as to weather they can reduce their price or not… Now, they may be in a bind and maybe they are not… They are not making much profit on the sale and they are selling pretty fast after buying it? Why? Maybe they didn’t like the home or the area… or maybe something personal happened… again… who cares, right? 

But maybe it is important, only depending on your goals: if you want to live there for 10 years and then keep it as a rental for 20 more years.. then maybe understanding the area, the home, the financials of the city are all important. 

Where to go next ? Right 

1. Number one, you need a great Realtor and Lender that can guide you through the needs analysis and can talk to you about all of this!

Someone that can show you the comps and show you that the seller is unrealistic or maybe not, and the property is well priced. 

If it is well priced, it is time to walk away (unless it sits for 40 or 60 days and you love the home) then you can revisit and make a lower offer. Which by the way, $30k less won’t mean much for you when it comes to your monthly payment, and something your lender can show you… 

2. You can check for properties in the area that have been sitting, are fixers or both: and make a CASH OFFER. 

Well, sebastian I don’t have cash…. Well, that’s ok! I have a lender that provides all cash anywhere in the US and then puts you into a 5% down payment loan program at regular rates. 

Why is that important : bc it sounds to me like you want a good deal. So say you find a slight fixer for $350k and you offer $280k cash : you may get it and now you just got a great deal. Cash is king with sellers. Fast close, no loan and appraisal contingency etc 

3. Look at off market homes: how ? Work with a Realtor that knows how. 

4. And this should have been #1: assess your situation and ask yourself: what type of home do I want to buy? Why? How big? What price? What payment per month? How long will I live in it? Will this be a rental in the future or sell it and trade it for something different ? And why? These will help with financing later and with strategy! 

If you haven’t had this conversation with your Realtor, ask them to. You don’t have to judge them or be aggressive and if they do not know how to guide you, let me know! I have relationships with Realtors all over the US. Let me know if you need a lender also. Good luck 

Are the sellers expectations out of line with the market and reality? Or are your expectations out of line with the market or reality?

Someone needs to readjust their expectations, but we obviously do not have the information to tell you who.

3 thoughts. What they laid doesn’t matter. First. What if they paid $400k 2 years ago, would you offer $450k?  Second. Making the offer, assuming you have the cash and/or credit to close, doesn’t cost anything. Make the offer expecting a no but be prepared in case it’s yes. Third, it doesn’t matter to the seller what it’s worth to you or me, on,y to the person that will pay the most. 

 If they bought it at $305 and sold it to you at $340 they're not making a profit. Their RE commission alone is going to be $20k. If it's not their primary there will be a capital gains tax as well, and perhaps depreciation recapture if it's a rental. That also doesn't account for the fact that $305k in 2021 dollars is $340k in 2023 dollars using 6% annual inflation as a figure. 

Irrespective of all of that, if you figure out what a property can be profitable to you at, that's going to be your offer. I would say that the market might not be able to support your idea of "a good deal" and you might just either have to settle for an "OK deal" or wait it out. 

@Katherine Roberts

What they bought it at is irrelevant to your thought process.  You need to evaluate the property on its merits and figure out what makes sense from your purchase perspective.  Not everything will make sense if you are coming from a purely investment perspective.  That doesn't mean that the home won't sell for their asking price or more.  There may be someone else that has different goals and objectives who will be happy to pay their price.  That's ok, make the offer that makes sense for your strategy.  If there is no way to bridge the gap, then you move on and find other properties to offer on.

Hi all,

The city I am referring to is Owasso, OK which is 20 minutes north of Tulsa. I am an agent here and would love to help people get into this market. I live and invest here personally, and really love the area. Much calmer than Tulsa and not too far away.

Many businesses have come to the area over the past few years. We have an Amazon warehouse, Macys distribution ctr, and a Whirlpool warehouse. 45 minutes north of Owasso is Bartlesville, OK, and in-between Owasso and Bartlesville lies a Walmart distribution center, which adds strength to Owasso. Bartlesville has the old HQ for Phillips 66 and ConocoPhillips and many people opt to live In Owasso and make the commute to Bartlesville. Owasso is also near the American Airlines maintenance base which is the largest aircraft maintenance base in the world. We are getting a new Costco by us this year, just got a Chipotle, and any other business you'd expect a strong market to have is here. Target, Chick Fil A, etc.  

Thanks you