Advice after first failed deal

5 Replies

Hi Everyone, I was about to put my first home under contract today went and viewed the place. I took pictures and everything for potential Rehabbers, but the price we had previously agreed was a little steeper after looking at the property and the seller was aware. The seller would not let me view the property unless I put an offer. So long story short I was able to get the property price to $57,500 and ARV was $75,000 with a potential market price at $128,000 with the highest at $150,000. The seller got offended and called off the deal because I thought I was making things easier for her by sending the property information. I was at work and had to text but everything can get mislabeled through text (which I should have known). So basically I'm stuck knowing I have what I think is a great deal but don't have it under contract to give to a rehabber. Can I do anything with the information or just shake it off and move forward?

I think you should ask the seller last time what does it take ($) to sign the contract or you can tell her best you can do is offer say $60K with quick closing as condition. 

Next time no need to show the potential turn around price. You can say it is a lot of work to rehab the home.

The property had one less room than the county had online.  I asked, "Im not too sure if you are aware that the county said the property has one more room than the property actually has; I can provide you the link if you like?" (I offered the link so she wouldnt think I was actually lying.  She then said "No, I was not aware." In which I responded with a screenshot from the county's website.  She replied saying, "I know how to access the county's site." In my mind, that didn't make sense because if you know how to access the information how did you not notice after managing the property for 18 years? But I didn't say anything or question it.  I was at work so I couldnt respond fast enough or apologize for offend her.  Talking to her was honestly like walking on egg shells for some reason....Before I knew it, she was offended that I simply was trying to be of help.

i think you have some terms and numbers mixed up. ARV is (after repair value) you stated the ARV was 75 then said potential market value of 128-150......I'm not positive but what i think you meant was purchase plus repair costs is 75? if so then next time say rehab costs are X(57+13=75) ......then "potential market value" 128-150 those are your Comps, that will give you your ARV, based on size of the home, finished, bed/bath, etc

if i am way off let me know, any questions just ask

ok so none of that had to do with what went wrong, but i had to get that out of the way first. So why did she get offended? did you discuss the ARV and other figures with her? or was it something else?

i would try to reach out to the seller and see what you could do to get a contract signed. call or visit in person and ask why she is selling.....whats her motivation? could there be something else you could help her with? if she has a problem they to help solve it. Listen to the seller and clue in on the reason they are selling.

if she won't call back or answer your calls, send a nice letter apologizing (if you think you have some to apologize for) or just something saying "thank you for your time, i would still like to talk to about the sale of your home"....maybe a thank you card for her time and consideration......a gift card or offer to sit and buy her a cup of coffee...... again trying to resolve any issues that may lead to you closing this worked hard for this lead (i presume) dont just give up!....its late and I'm rambling......

Thank you David for clarifying the terminology for me. I did not discuss any numbers with her though only purchase cost. I give her another day then I’ll apologize again for the miscommunication and thank her for her time again. After that situation, I don’t think I’m texting about deals.