Seller Says to show property it is $500

Flipper/Rehabber · Member since 2020 · 15 posts · 1 vote

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.

0 Reply

18 views

Most Popular Reply

William Walker

Investor · Wilmington, NC · Member since 2016 · 211 posts · 262 votes

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.

8 Reply

See this reply in the discussion

22 Replies

Jump to latestLatest

Sort by

Jared HottleBusiness Member
Real Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
4y
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.
[email protected]319-288-5382
Jared Hottle Real Estate59 Reviews
Website View Page
2 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
4y
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.
0 Reply
Shayne Williams
OP
Flipper/Rehabber · Member since 2020 · 15 posts · 1 vote
4y
@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”
0 Reply
Shayne Williams
OP
Flipper/Rehabber · Member since 2020 · 15 posts · 1 vote
4y
@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
0 Reply
Andy RouschPro Member
Investor · Mt. Arlington NJ · Member since 2018 · 251 posts · 143 votes
4y
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
1 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
4y
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.
5 Reply
Shayne Williams
OP
Flipper/Rehabber · Member since 2020 · 15 posts · 1 vote
4y
@Andy Rousch
Funny enough, the seller keeps saying how people kept changing the offer price on him, which I’m assuming they kept lowballing him. So maybe I will stay away from this house lol
1 Reply
Scott JohnsonBusiness Member
Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votes
4y
If they're literally trying to have you pay to just SEE the property, I'd tell them to kick rocks. In. a nice way, of course. Plenty more opportunities out there.
[email protected]
3 Reply
Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
4y
What it means is you have an idiot as a seller.
5 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
4y
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.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
1 Reply
Tucker Cummings
Investor · Raleigh, NC · Member since 2019 · 433 posts · 743 votes
4y
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.
2 Reply
William Walker
Investor · Wilmington, NC · Member since 2016 · 211 posts · 262 votes
4y
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.
8 Reply
Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
4y
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.
0 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
4y
@Shayne Williams no.
0 Reply
Bonnie LowPro Member
Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
4y
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.)
[email protected]
0 Reply
Maksu Ize
Investor · Vancouver · Member since 2021 · 165 posts · 137 votes
4y
Scam
0 Reply
Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
4y
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.
0 Reply
Josue Vargas
Real Estate Agent · San Antonio, TX · Member since 2017 · 814 posts · 466 votes
4y
In which Country is this listing? Looks like someone needs to talk to the Broker who owns the listing.
0 Reply
Andy RouschPro Member
Investor · Mt. Arlington NJ · Member since 2018 · 251 posts · 143 votes
4y
@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
1 Reply
Danielle Jackson
Phoenix, AZ · Member since 2021 · 504 posts · 282 votes
4y
Is it $500 just for you to see/walk through the property?
0 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
4y
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.
0 Reply
Steve K.
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
4y
@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.
1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.