Homeowner · Jersey City, NJ · Member since 2017 · 52 posts · 11 votes
I'm trying to convince my next-door neighbor to sell to me. They are open to selling but have not thrown out an initial asking price. The home is a 3-family and in need of a lot of work. How do I propose the first offer without insulting the owner? Should this be a formal offer on paper from a lawyer or verbal offer only? Should I provide comparables from the multiple listing service and prices for the cost of the required renovations? I'm confident that I would offer the best price/deal to this owner but am worried they won't realize it until it's too late. What I mean by saying "too late", is they will let it sit vacant for several months, pay for renovations, pay for a real estate agent, and then get lower than expected offers. How do I get them to understand that selling to me now "as-is" is in their best interest?
@Michael Lettieri, you need to hop on the phone with them asap. I can't speak specifically on your market, but the reality is the owner probably will get higher/better offers if the property is marketed on the MLS. As you've noted above, be intentional with them and guarantee that you will close on the deal. At the end of the day, give them an offer they can't refuse. If you're serious about locking the deal up, then perform an inspection before submitting an offer and waive your option period. This will show the owner that you mean business and are professional. First things first, you need to get to the owner before a real estate agent contacts them, then it'll be too late.
Have a reasonable conversation with them, and come from a place of offering a helping hand. Let them know if they sell to you they will not have to pay closing costs & deal with the hassle of walkthroughs. Most people are not investors, rehabbing a house takes a lot of money and time, they may come upside down after they do repairs.
@Michael Lettieri, you need to hop on the phone with them asap. I can't speak specifically on your market, but the reality is the owner probably will get higher/better offers if the property is marketed on the MLS. As you've noted above, be intentional with them and guarantee that you will close on the deal. At the end of the day, give them an offer they can't refuse. If you're serious about locking the deal up, then perform an inspection before submitting an offer and waive your option period. This will show the owner that you mean business and are professional. First things first, you need to get to the owner before a real estate agent contacts them, then it'll be too late.
Yes they will get higher offers from the MLS but it won't be a better deal after paying for the realtor and renovations.