Hi all, We are working on securing a flip. Seller countered our offer and I'm trying to find ways to be creative with my counter to them since there is not much room in the price. Here are some details 1. List price =$249,900 2. Rehab cost = $50-$60,000 3. Holding costs = $12,000 assuming 180 day holding period 4. Sales commission = 6% on 325k arv (conservative arv) 5. Profit = 20k My first offer was $213k with inspection and financing contingencies. 14 days for inspection and 45 to close. They countered at $231k. I'm thinking of making my final counter at 221k and 30 day closing. Lender has 30 day turn around time. Anything else I can do to sweeten the deal for sellers? Thank you! Max

Forgot to add that I wanted to add $1500 seller paid closing costs with my final counter offer.

Can you remove the inspection since it's a flip and take it as is?

@matt k. Inspection is my only way to get out of there is something significantly wrong and would blow my rehab budget out of proportion. Am I incorrect in how I look at inspection?

@Max Gomeniouk

$221K + $60K + $12K = $293K

$325K - $20K (6%) = $305K

Projected Profit = $12K

Honestly, that doesn't seem like a lot of spread/margin in the deal.  Maybe others will disagree but I don't know (if I were in your shoes) if I'd budge on price.  Maybe just reduce the time to close and inspection clause.  That's assuming that your lender doesn't require an inspection, they might, not sure if your financing situation.  There are worse things in the world that just opting to walk away from deal terms that have become mediocre.  

If it's been on the market for a while...they sellers might end up chasing you...

@andrew my rehab # is on the conservative side I believe but I haven't been through the house with my contractor yet.

I think my lender requires inspection and I'll double check on that also.

Thanks for your reply!

Max

Days on the market = 96

honestly I would reconsider weather or not you think you should venture into this deal, 12k profit on a flip, one thing goes wrong ur upside down. unless I'm missing something here

@Max Gomeniouk Ummmmmm...then I'd have you say: "Before I counter, I'd like to take my contractor through the property."  Who knows, they might say yes on the stop, say "sure", or see it as a delaying tactic.  Who knows. Either way, at 96 days it doesn't look like the offers are flooding in.  I wouldn't be in a hurry to counter and I don't know why you'd counter without taking your contractor through.  

Okay, well, I would never counter before taking a contractor through.  I don't know squat about construction so I'd rely heavily on the advice, counsel, pricing, etc. of the contractor that I'd use.

I'd get thru there with ur contractor before making a counter, have your agent run solid comps these numbers are way to tight for being conservative and taking a guess

sorry my post added after you

Thanks everyone. I'll see what I can do with getting my Contractor thru first. Appreciate the help

Skipped on this property . Thanks all! Rehab cost came in higher than anticipated :)