Investor · Member since 2020 · 44 posts · 19 votes
Hi All,
I'm interested in buying 1 house out of a 3 house deal for my primary residence. There is a potential buyer for the 3 house deal who is interested in selling me that house. The seller will only sell the 3 together.
He has not purchased the deal yet due some unresolved legal issues, including an eviction that is underway but will probably take at least 3 more months.
He reached out to me after a few months of radio silence and reaffirmed that they are interested in selling to me and asked for an informal LOI.
My lawyer and realtor are advising to hold off on giving him a number until he actually purchases the property.
I have done a ton of due diligence, I have all the as-is sales/comps for the area for the past 3 years and have a good idea on the cost of repairs that I know about and I know the market rents so I have a number in mind.
I'm curious whether knowing what I would pay for the house would influence whether he decides to proceed.
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
3y
@Kathy Moser, time can be a powerful negotiating tool.
Something as small as giving out the first offer can make a difference.
In this case, I think the big issue is, is the person you would be buying from ready to sign a sales contract with you today? If not, then there is no reason to show your hand at this point. If you give them an offer they have time to shop around and use that to try to find a better offer.