All Forum Posts by: Wesley Frye

@Wesley Frye

What’s the expiration date of the contract? If it expires and you don’t close because of wholesaler, you get it back

Thanks for the response. The contract expired on October 27th. I was sent an addendum to extend the closing date but did not sign it. 

@Wesley Frye 5 showings in the first 10 days is too low and If you received an offer from a First time buyer they usually need help with closing costs.

My first advice as an agent.is you need make sure about the value of your property because it need to be appraised and in case do not appraise for the amount they are offering you will be in a complicated situation because they do not have funds to cover the difference.

 The buyers can't afford the down payment, they can't afford an extra $2K...I'm going to guess the deal will fall through due to the buyers not being able to get financing.  How many other showings have you had?  If you go for the $222K offer, tell your realtor to make it clear you are done playing games and there will be zero concessions if they ask for more discounts after the inspection.

The goal of flipping a house is to maximize profit while minimizing the time and effort spent on the property. Assess the potential benefits and risks associated with each decision. 

If the lender says that the buyer needs $8k to close, that's a huge red flag; if the budget is this tied, the deal can fall through, with other small things coming up in the future in this transaction.

Depends on the profit margin and what the interest has been like in the house

Seems odd they can't increase the purchase price to 224k - I mean we're talking an extra 2k financed over 30 years - this is like a few dollars a month lol

But with the timing and holding - I'd probably just sell it and get to the next.

"A bird in the hand is worth two in the bush"

Hi Wesley,

It seems like a matter of whether you think there would be more offers down the line. Are there other buyers contacting you and how aggressive is this property priced? If 220k is a fair value is priced well, it may not be worth losing an offer for the extra 4k given they're paying around asking price. It would be a good attempt to tell them to up their offer to $224k to cover their closing cost though. It would also depend on other factors - such as whether you have a carrying cost (hard money loan) and whether there are next projects that you foresee to close.

I'd tell them if they want you to pay $8K in closing costs, then they need to up their offer to $224K to cover the extra $4K in closing costs.

What does your realtor suggest?

Wesley,

Seller credits or seller contribution to closing costs is usually common when the buyer is coming is closer to full ask. If they are buying it as a Investment they are capped at 2% Max of the purchase price. If its a primary home they can go higher but in a slow market 3% to 4% is common and if they are not coming in at full ask usually the seller offers 1-2% which is fair.

The buyer must have an unexperienced Loan officer because you should always know what your customer needs prior to sending them a pre-approval letter or allowing them to go into contract. The reason why I say that is what happens if you do budge and come up and they come back and they say he/she needs more..... Sounds like they are short to close I would ask for a loan commitment before you waste too much time with this buyer.