All Forum Posts by: Scott Hughes

So, I imagine I'm having a similar problem I'm finally getting over that a lot of rookies face. That is overcoming the notion that I need to see a piece of property to put an offer in on it. I'm pretty much there, and on board with the idea, seems popular amongst many I've read/talked to. I just wanted some thoughts from the group mind on a couple points.

1. What are the "gotchas" of doing this. And by the same token, advantages?

2. Since these are on-market deals I'm talking about, and will likely involve my buyers agent, what are some points to make with her I can use to overcome what I'm sure will be seen as some kind of cognitave dissonance, since typically it would be unheard of to offer a house sight unseen (in normal circumstances, with a standard buyer).

(At this point I feel compelled to ask that you don't point out that I need to be shopping "off-market" deals. I know, and I am, but that topic is a whole 'nother Oprah.)

3. If you do this, how do you handle (i.e., what do you write into the offer) for Due Diligence and Earnest ($ and time). Also, what extra contingencies may be good ideas to include.

Thanks in advance! 

SDH

Here goes another rookie question. It's about making offers on MLS listed properties.

Let me preface this by saying, Please don't give me a 100 word essay about why I should be looking off-market. I am, and I know. But with over 60% of properties still trading on the MLS, this is a problem I want to fix, or at least mitigate.

Here goes: Is there any best practice, philosophy, thought, advice that any experienced people have about when to offer on a deal they find on the MLS?

I work with a Buyer's Agent, as one would/should want to do with on-market deals. However, imagine this, I AM NOT her only client! On top of me asking her to pull comps and set up showings, she has to deal with her own goals from the Broker of her office, her family life, etc., etc., etc.

Needless to say, some of these requests have gotten behind. I was of the opinion not to have offers written before seeing the property and getting the comps (I find them more reliable on value/ARV than me guessing at this point).

Now I am starting to be of the mindset to write the offer (or have her write it) when I identify a good candidate property. At least for flips and Brrrrs. (Maybe not so much with rental ready properties).My thinking is, at least I get there first. I'm likely going to have the property inspected anyways, for major foundation/roof/structural, etc.  problems and have a contractor look at it too. Having a due diligence should give me enough time to back out if it looks like a trojan horse house.

Any thoughts, or advice, or what you would do (besides look off-market) would be appreciated. Thanks in advance.

Question. Probably obvious, but I was wondering. 

I know for on-market properties, it's easy, the Realtor writes the offer. (please, no long soliloquies about how I should be looking for off-market deals).

However, what's the general consensus on making offers for off-market properties. Do you have your buyers agent write it, or do you write it yourself? Do you use the standard state form (in this case, NC) or do you use a different, or self-generated form?

Thanks in advance.

SDH

I have a question or two for those who write offers often.

Here's the scenario: I want to put in an offer on a 2/2 condo that is rent ready. The asking $ is 76K, however, I had my realtor comp it and it came back at $58K, I know that that is subjective, and the market dictates the price, yada yada. My concern is that my financing will obviously not finance more than the appraised value of it, and I'm not going to come out of pocket for the difference.

My thought: So I heard of a offer strategy that may preserve the possibility of making a deal if the appraisal comes back low, versus just pulling out altogether. That is, I want to offer 2K above asking (because of this insane market) and have a contingency that I would pay 2K above appraisal if it came back lower than asking price.

My Problem: BTW, this is an ON-market deal. My realtor, and her BIC do not know how to write that into the offer. They want me to have my lawyer draft an addendum to include with it. So, I was wondering from the group mind if anyone knows hoe to phrase this in an offer. Has some kind of template addendum to write "non-standard" offers, or any other guidance.

The details: This is, BTW, a North Carolina property. I have googled this and checked the state real estate assoc. site.

Thanks for any help.