Working on multiple things...
1-property was submitted for offer and seller rejected. 1st stages on market not long enough for seller to realize the list is too high given the condition and comps. seller thinks they can get what is listed or close to. Stated other investors interested but no ones offering - just looking. Tells me they aren't interested either at that price. Question: how many times and what time span is sufficient to go back to re-offer whether the same $$$ or slightly higher to the seller. Keeping in mind that the 1st time was met with - I won't say nastiness because I wasn't there to hear the rejection but obviously not well received.
2-seller is doing FSBO and have not approached yet to find if they are amenable to working with my agent to buy. Question: do those that do FSBO that work with an agent, do you find that sellers are willing to deal when there is a buyers agent? My RE speak to the seller would be to introduce myself and tell them right off that I have an agent and if they would be willing to pay a commission then I would love to see their home and discuss further.
Thanks and have a wonderful day!
1) likely no harm in waiting 30 days or so, since they're over priced
2) most FSBO's are open to working with a buyer's agent, particularly if it's been listed for a few weeks or so.
Who cares? The seller is the last person you care about. Do what you have to to keep your bottom line, your tenants, and your team happy.
The reason you should wait is not so you don't annoy the seller; it's that another offer isn't going to do you any good. Your number were rejected without a counter, suggesting that the seller is not close to accepting it or anything slightly higher. Is there a reason you are tied to this property? Don't waste your time if the numbers aren't even close. I would move on. Look for something that might be a better deal, and if you don't have anything, check back in 30 days or so as @Wayne Brooks suggests.
@Daria B. , I am curious why you are bringing in an agent in a FSBO offering? You can get a fill in the blank contract and a title company to close. You are possibly adding 3% to 6% costs on top of the price. As to how long to wait before making another offer I usually wait 30 to 60 days. Sometimes that works out sometimes not. The last time I tried that though, an agent in the real estate company bought the property with an offer similar to mine but higher. That mistake will not be repeated.
Hi - I'm not tied to the property - the numbers are good and I am looking and considering other properties. But just to offer once and way away seems like it's not a smart thing to do. I've not gone back to properties and found they sold for much less than my offer when the seller was holding out and couldn't any longer. I could be offering on a lot of properties and just walking away at the 1st rejection but that just doesn't seem like it's worth doing. I find good properties, look at what I would offer with all the other things (ie PM, R&M, cap Ex, condition, rent, etc).
Hi-Just because the paperwork that is involved I don't want to deal with. My agent thinks of things that I don't and I don't feel ready to handle a FSBO on my own.
It's been two weeks on the offer and in that time I've found some other properties that I'm investigating their time on the market. Just as soon as the offer was rejected I found some that just came on the market. Also looking at probate filings as a new alternative.
Thanks all for answering.
@Daria B. if you have not closed a few deals I can see why you are being cautious. You might consider paying the realtor from your funds not the Sellers, perhaps they would accept an hourly fee or a flat fee for helping you out, but perhaps not. I would suggest trying to meet with the seller in person and not through an agent to at least build some rapport. If you can find the motivating factor in their selling the property perhaps you could work out a deal that would benefit you both. Then you could have the realtor draft up the paperwork. If you are not the one dealing direct with the seller you miss the chance to truly understand and craft a deal that is win win. Sometimes it is all about money, period. Sometimes it is something else.
Yes, being cautious. I have properties acquired via my agent and am apprehensive when dealing with too many "new" things at once that get my head spinning. Right now it's a "safe" thing for me and eventually I will branch out as I've done with other things, in general. Some people are fine with diving into the deep end of the pool and others wade through until they feel comfortable. Not sure where that metaphor came from but that's the gist.
FSBO's are some of the hardest people to work with and are often incredibly unreasonable. Also they typically don't understand how to price a property appropriately. My suggestion would be to move on to something else. Maybe come back around with a higher offer in a month or so but don't get your hopes up. Is this multi-family? SFH?
@Daria B. I agree with @Kevin Siedlecki said. I'd just add that you'll find as you do make offers, either on different properties or on the same property that some efforts will be the least productive use of your and your agent's time. So while the deal has to work for you, so does the time and effort to land the deal. For me I'd need to see some motivation in the seller--price drops--before I'd get too interested in re-submitting an offer. On the other hand, if it is just an informal phone call from you or your agent to see if they are more negotiable, that might be worth doing every month.
The FSBO is a SFR. I've actually found a couple in the area but only one that I was more interested in. It's in a good area, student rental, house looks good from the outside.
Seems that a lot of homes are inappropriately priced as it is with the non-FSBO that I put an offer on. The seller has done nothing to the house in - how longer is forever? But they want the same consideration as a few other homes that are on the market in the same area but they have been bought up to date inside and outside. Those are a little too out of my range though.
Old axiom: 'Your price, my terms. Your terms, my price'
If you are buying as a rental then you need to learn how to communicate what the house will support, from max rent less expenses perspective.
Alternatively, if someone will sell with seller financing or at least stagger or delay part of the laymen the, I can give them their price then re-negotiate all or part of carry back later when they come back to the well asking for their money earlier than agreed.
Your real estate agent may be thorough from a buyer checklist respective, however they may not be as effective in communicating with seller as you may (learn) to be. Or, they may have a different agenda. Hard to say.
Personally, I would speak directly with the seller, leaning to "ask better questions."
So, my solution is part sales-related, and part negotiation. You'll never learn how to close deals by letting the agent be your 'interpreter'.
I know of someone who resubmits his same offer every month. Eventually it gets excepted or someone else's offer gets excepted. Often times his offers are excepted after month 6. This is the same system I will use also. Stick with your numbers and don't give up too soon.
So it's not totally unheard of....I was looking for an "acceptable" timeframe that others may have done themselves and worked. I have a lot of experience in putting in offers that get turned down that later become someone else's property. I want to stop that and "be" the person to get the property.
is my good friend and a veteran REI negotiator.
Here is a list of questions to burn into your memory.
___________________________________________________________________MOTIVATED SELLER – QUESTIONNAIRE CHECKLIST
The following is a list of sample questions you should ask a seller. When talking to a seller, try to ask the questions through the course of a conversation and try not to sound like you are reading from a list.
(Note: You will not ask all of these questions depending on the answers the seller gives and your investing objectives.)
Asking About The Seller And Their Property:
• What do you like most about the home?
• What do you like the least?
• Are there any repairs needed?
• What is your sales price and how did you arrive at it?
• What do you think your house would appraise for in excellent condition?
• What do you think your property could rent for?
• Is your property listed with a real estate agent?
• If you don’t mind me asking, why are you selling?
Asking About The Existing Financing:
• Do you know if your mortgage loan assumable?
• Would you sell the house for what you owe?
• If not, how much are you looking to get above what you owe?
• How much are the monthly payment on the mortgage?
• Are the payments current?
What Kind Of Deal Can You Get:
(Follow-up by asking if that is truly the least they would take.)
• Will you consider leasing the property to me with an option to buy if I guarantee the mortgage payments and maintenance?
• Do you have a problem with someone living in the property until I get it sold?
• Would you consider optioning the property to me, if there is absolutely no risk or cost to you?
Sorry duplicate post. :)
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