Question for Flippers from Potential Buyer
Hi All,
Looking for flippers to answer a question I have. I have a client looking at a house, and as a RE Professional, I can see from data, that the house was purchased last year at a much lower price then being marketed for (a flip). With this knowledge in hand, my client wants to come in under the asking price 15%, which is equal to an almost $115,000 discount. That being said, there will still probably be profit left in the flip for the seller. The number still leaves $200K above where the seller bought the house a year ago. My buyer would be coming in all cash (with proof of funds) with just an inspection and title insurance contingencies. The market the house is in is very flat, if not down.
My questions to flippers is, what would your reaction be to this type of offer? Would you even counter it?
TIA,
Scott
Most Popular Reply
I think the only question becomes what is the property worth. What the seller is making is irrelevant. If my grandfather passes away and leaves me a 1963 split window Corvette should I sell it to you for $5000 because I'm making $5,000? Of course not, they're worth $50,000 - 200,000. What I own something for has zero bearing on it's value. If the flipper can prove that he spent over $350,000 on rehab and carrying costs would your client be willing to pay over asking?