Seller Says to show property it is $500

22 Replies

Hey Bp community, I have a seller who is saying, “ So for my time to show it, it would be $500,which I will take off the price of the home at closing, we would consider that hand money.”

I’m sorta confused what that means, please someone explain lol.

never heard of that and I would probably not do it. earnest money is used in a similar situation where if it closes you would get the money deducted from closing costs at closing but that is after a purchase agreement is written up. Heard of someone trying to charge $25 to show a property because he was out of state and had to hire someone to go unlock the doors but even that I think is ridiculous as it will cut off a large pool of buyers. 

If this is a property you are really wanting and there is a price you like it at sight unseen I would maybe write up a purchase agreement with an inspection period and another term stating you will see all the units at no charge within 3 business days of accepted offer. 

Originally posted by @Shayne Williams:

Hey Bp community, I have a seller who is saying, “ So for my time to show it, it would be $500,which I will take off the price of the home at closing, we would consider that hand money.”

I’m sorta confused what that means, please someone explain lol.

Is this a private seller or a property on the MLS? Was it listed or did you find an off market deal? They are probably charging money, so you don't waste their time. There are lots of investors or wholesalers out there trying to buy properties for a fraction of value. There are also "wannavestors" as I call them, who look at a hundred properties and never buy anything. I am not saying you fall in that category, but the seller doesn't know you.

I have heard of sellers requiring a signed purchase agreement and deposit prior to showing. The purchase agreement has due diligence clauses, so you can still back out for legitimate reasons. I am not sure if that is the situation here.

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@Joe Splitrock

I found this property off market. I do want to try and wholesale if possible, but he also just said

“Yes pretty much a hand money check as long as you As you buy the house if you don't no thank you for $500 Now would this be a cash Or alone if alone I'm gonna need a preapproval letter Or I can hire a realtor and we'll set the price at a 100000 She can show it to you”

@Jared Hottle

That makes sense, because he actually said how people keep changing the price on him, which I’m assuming they went site unseen and when they went to inspect it, they changed the price, so that’s maybe why he is charging $500

Yes I would not pay $500 just to view a property without some type of legal protection if you did not like the property. @Jared Hottle had a good idea to write an offer and maybe that will get the door open since they will see you are serious. This does sound crazy though I have never heard of someone charging to show a property especially not $500. You can probably low-ball the person because their house is going to have zero showings 

Originally posted by @Shayne Williams:

@Jared Hottle

That makes sense, because he actually said how people keep changing the price on him, which I’m assuming they went site unseen and when they went to inspect it, they changed the price, so that’s maybe why he is charging $500

 This is a typical wholesaler method of operation. They set one price, then view the property, list repairs and offer a new price. Or they market it for a while, the buyer offers too low of price, so they ask for lower from the seller. People are sick of being jerked around. 

Originally posted by @Jared Hottle:

never heard of that and I would probably not do it. earnest money is used in a similar situation where if it closes you would get the money deducted from closing costs at closing but that is after a purchase agreement is written up. Heard of someone trying to charge $25 to show a property because he was out of state and had to hire someone to go unlock the doors but even that I think is ridiculous as it will cut off a large pool of buyers. 

If this is a property you are really wanting and there is a price you like it at sight unseen I would maybe write up a purchase agreement with an inspection period and another term stating you will see all the units at no charge within 3 business days of accepted offer. 

 hand money and EM are the same thing just different terms IN western PA EM is called Hand Money from the transactions I have funded there. 

If y’all are close on ballpark price, I would do it. But I would write it into a contract what it’s for and that it goes toward the purchase of the home. Also I would make it go through escrow.

So pre-screen the appointment by saying, “if I come out there and we agree to a price, are you prepared to sign an agreement to sell the property to me?” If they say yes, then you say, “great, so that we don’t end up wasting each other’s time, I’d like to know first if we’re even close on price. What do you want for the property?” Turn your sales hat on and get the number out of them, don’t give your number. If you’re close, follow through with the appointment, if not, it’s ok to walk away.

Originally posted by @Joe Villeneuve:

What it means is you have an idiot as a seller.

 I think it’s a seller who’s tired of people trying to wholesale his property. OP said he found it off market and is trying to wholesale. Seller Probably had people offer a price saying they are the buyer- turns out they are whole selling and don’t have a buyer. Seller wants $500 to get rid of tire kickers and newbie whole sellers. Don’t blame him/her. 

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Originally posted by @William Walker:
Originally posted by @Joe Villeneuve:

What it means is you have an idiot as a seller.

 I think it’s a seller who’s tired of people trying to wholesale his property. OP said he found it off market and is trying to wholesale. Seller Probably had people offer a price saying they are the buyer- turns out they are whole selling and don’t have a buyer. Seller wants $500 to get rid of tire kickers and newbie whole sellers. Don’t blame him/her. 

What you say is probably true.   Doesn't change a thing.

Well, that's a new one. Move on from that seller. They're going to be a tremendous PITA to work with. You don't pay to view a property. Earnest money is completely different. Earnest money is essentially a deposit when you get it under contract which says you will follow through. Your seller is unrealistic and either looking to just brush you off (in which case you don't want to work with him) or totally clueless (and that spells trouble.)

I’m assuming you’re trying to wholesale the property and you told the seller that you were trying to wholesale the property. So is the seller saying that he is wanting $500 earnest money to show the property to all your potential buyers or is the sellers saying he wants $500 for you to look at the property one time? If he is wanting $500 for you to look at the property one time then that’s not attractive. Is the house vacant? If the house is vacant and you think you have yourself a deal then $500 to allow you to put a lock box on the door and a contract might be an option . $500 earnest money going hard is not a lot of money IMO. 

In which Country is this listing?  Looks like someone needs to talk to the Broker who owns the listing.  

@Shayne Williams It looks like your in the Pittsburg area? I'll send you a private message I just got a rental out that way and have a great team out there depending on what you are looking to do hopefully I can add some value to you one way or another 

The person is a scammer and trying to make a quick buck.  honestly, I'd worry that he doesn't even own the property.  I'm guessing when you say people keep changing the price on him, he wants $X and once they see it, they offer him less.  That is normal not to offer list price for a place.  Unless you drove by and think it is an amazing deal, don't do it.  He's had multiple offers that didn't take, so that should tell you something.

@Shayne Williams Tell him no problem and then 5 minutes before the showing appointment text him and let him know that you ran out of gas and forgot your wallet at home, but you have a certified check for $1,000 for him for the showing, so you need him to front you $50 for the gas so you can get there and give him the $1,000 check. The reason the check is for $1,000 is because that’s the smallest amount the bank could write a certified check for, so if he can just cash app you $450 for the difference in the showing cost and the check amount, minus the $50 for the gas to get there, you will be square. Then don’t go to the appointment.