I'm looking at a FSBO in a wealthy area where foreclosures are rare and houses on the MLS will get offers within days. The current owner is a real estate investor who rented out multiple properties over the years and now he's older and he's selling off his properties. I did my own comps, and the estimated value is lower than what he's asking. I might live in the house or I might rent it out. The house is outdated but doesn't seem to need much work. It was built in 1954. Do you have advice for things I should be careful NOT to say to a savvy investor like him when I'm negotiating? In the past, I've had the buffer of an agent to relay information.
Is it better to say I plan to live there? Should I avoid telling him I'm looking at it as an investment?
Should I suggest seller financing? Then I could offer closer to his asking price, when you factor in interest for the seller financing.
I haven't spoken to the guy yet, only his wife.
Tell him you're an investor. By the question you'll ask he'll probably figure it out anyways.
Go ahead and suggest seller financing. He may be more keen to that actually.
Say the same thing you've said here. Its a property that seems to be higher than the comps suggest. Keep your number at those comps price. Also mention that it is outdated but in good shape. As an investor he'll understand. He doesn't have the same emotional attachment to hte property as a normal buyer would. You're possibly in a better situation with an investor as a seller rather than a regular home seller.
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