$12,500 Wholesale from Bigger Pockets - When an agent isn't the best option
Pretty stoked to share I recently wholesaled a deal I found direct from the seller right here on bigger pockets!
Not only that, but I actually allowed them to make MORE money selling to me than they would have by using an agent. Here's the play by play...
Two weeks ago, I see a post on the forum. Seller wants to get out of their property and needs an investor to purchase it. I sent a PM inquiring and we started things off. I explained I was a wholesaler and had some partners interested.
Turns out they had once listed with an agent who had "bought the listing" a practice of over promising the sales price to secure the listing only to come back and ask for reductions to close the deal in the end. This hadn't sat right with the sellers and they allowed the contract to expire after 60 days.
The home had been inherited but was outdated and had a reverse mortgage, with a lender putting pressure on them to sell. Not only that but the carrying costs of utilities, pool guy, gardener etc... were taking its toll on the family.
So, I sent a few buyers through and knew I could make a deal happen. The general consensus was a on a good day through an agent this place would sell for $545-550k so here is how we made it work out for everyone.
My offer: $530,000 and I'd cover closing costs.
Buyer Paid: $542,500 and paid closing costs.
My fee: $12,500
Net to seller (not including paying off reverse mortgage): $530,000
We closed in 7 days.
Had they re-listed with an agent
Best possible offer: $550,000
Commissions: $33,000
Closing costs: $3500
Net to seller (not including reverse mortgage balance): $513,500
Could take weeks or months to sell
So, the seller was out of their problem property in no time, no commissions were paid to anyone but me (and much less) and everyone is happy.
The keys to pulling off this deal were the following.
Listening, really hearing the situation and being aware this was due to a recent death and being truly understanding and compassionate about the situation
Assurance, being 100% confident that I could perform and deliver as promised.
Being human, treating this as not just a transaction but knowing this was not just the selling of a property to this family.
Thanks Bigger Pockets!