Real Estate Agent killed my possible wholesale deal
First of all I have to say thank you to @Michael Quarles for providing his tips to direct mailing and negotiating your way to wholesaling. His strategies allowed me to get calls and invitations to come out to buy their homes. The rush of getting phone call in the money line is really exciting. =)
Anyway, here is the bummer part. I got slapped with the dreaded Real Estate Agent promised me bit a few times now. I believe we all experienced something similar like this before right?
But Nixon "The Real Estate Agent that would like to list my house promised me and strongly believe he can sell my house for this price".
Not sure what to do with these type of angles. I had a property, which came in from one my Yellow Letters. The father passed away in March of 2014 and all of the heirs would like to sell this property ASAP. The property is located here in La Canada up in the hills and home prices are going for like 1.3 million for the 3 bed and 3 bath ARV. If a house is completely demolish from ground up and they start from scratch, you can see homes selling in the range between 3 to 4 million (brand new). The seller contacted me and informed they have a house they need to sale they have an idea that the going price is like 1 to 1.3 million, but they are willing to go lower if it is a full cash offer. Without any hesitation, I made an appointment to visit them the very next day and view the house they would like to sale.
Property Profile Breakdown:
- La Canada Property 91011
- 3 Beds, 3 Baths
- 2590 Sq. Ft.
- Pool
- 1 Carport
- Built: 1957
- Lot Size: 20,673 Sq. Ft
- ARV 1.3 million
Property Red Flag:
- Non-permitted garage conversion into two bedrooms and den now has a closet to become extra bedroom (Seller indicated it is now 6 bed and 3 bath which makes to sq ft to 3200)
- Electrical and ground wiring are outdated needs to be upgraded
- Homes felt like it was back in the 70's living in the Brady Bunch era. Everything was very old and out dated. Anybody can move in but would take lots of work just to get up to date.
So here is the kicker to my story. After examining the property and knowing what I can actually go in and actually make a proper offer. The seller indicated that morning a friend brought over a Real Estate Agent to see if they can assist. Straight out the agent indicated that she should could list the property for 1.7 million as is and somebody will not hesitate to purchase it as is. My jaws dropped and I didn't really know how to respond with that price. Since originally the seller was willing to go down below from the 1.3 million range if paid in cash. The crazy part is that the seller really believes she can get a buyer for 1.7 million. I even presented the seller the compare report I had gathered showing her numbers are skewed. The agent was good and because the seller responded by saying "that the non-permitted converted bedrooms in the garage, expanded her property sq. ft and value". I indicated that if they do find a buyer, the appraise value from a certified appraiser may not match her request and may cause a major delay in closing. Once again the response was that "The agent said this" and "The agent said that".
I am still at ughhhh. Don't really know how to respond to this situation. I guess you can say I am pretty much frustrated and the same token I kick myself in the butt and wish I went out sooner. Anyway, any good tips to over coming this would be great.
~Nixon