How to Approach Private Seller

Question

My neighbors (renters) are moving out of their house within the week and I've been told that the owners of the house are going to update/renovate and then sell. How would I approach them and say I'm interested before they do their renovations without sounding like a cheapskate or to much of a salesman? I checked on Zillow and they estimate the house is worth ~$202k, which is a little out of our price range (assuming we'll need to put 20% down).

I haven't been inside the house so I'm not sure what all needs to be updated (it was built around 2001, so it can't be that much), so I don't know how much I'd be able to get off of the theoretical asking price.

Mindy Jensen · Answer

@Andrew Merritt , when you talk to them, make sure to specify that you're interested in the property before they make improvements. The worst thing they can say is no.

I've received my share of yellow letters, and the one that stood out the most was one where they all but accused me of not being around so they could contact me. They shared such helpful information as my house was a dump. Don't take this approach. Be nice and respectful. "I heard you were thinking about fixing the house up and selling it. I'd like to buy it before you rehab it. If you're interested, let's talk."

The Zillow estimate is not necessarily accurate - in some markets it's pretty good and in others it's wildly inaccurate - both up and down.

This could work - stress to the owner that they won't have to pay real estate agent commissions or go through the headaches of rehab. You should ABSOLUTELY have representation when you buy or sell - especially if you're new to this. Have an attorney review your contracts before you sign them.

Can you talk to your neighbors and ask them about anything that's wrong with the house? They will know best because they live there.

Daria B. · Answer

I concur with @Neil Aggarwal. Just be honest and genuine and tell them you are an investor looking to but their property.

Mindy Jensen · Answer

NO!

Do not do the paperwork yourself.

I didn't know you had an agent. Using your agent can help the deal go smoothly.

You stand a better chance of your offer being accepted if you make it financially advantageous to the seller. Offer to pay the agent's commission in the offer to the seller.

Andrew Merritt · Answer

Thanks @Mindy Jensen.  I was planning on using my realtor to do the paperwork and everything b/c I have no idea how to do all of that.  Would you recommend I do it all myself to save money?  If so, where could I learn all what is necessary for the process?

Neil Aggarwal · Answer

The straightforward approach is the best solution. Talk to them.  Say you are interested in buying the property and want to know if they would be interested in selling to you and how much they think they will be asking.  If there is a meeting of the minds, great.  If not, move on.

How to Approach Private Seller

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