Seller Response - Now I CAN'T BREATHE!!!

7 Replies

I just received a response back from a seller that has 2 quadplexes and a triplex for sale on the same block. Unfortunately they are listed on the MLS. I sent a request for the rent rolls and the trailing financials. Now that it has been 3 days with no response - I inquired about my previous request. Here is what I received:

"the seller will only sell for full price and asked if you were willing to do that."

I seriously can't stop laughing. I actually know the property well and the area. I also know that he is AT LEAST $90k too high on the quads, and $50k too high on the triplex. Without walking through them - I would also expect that he has done only minimal repairs in the 10 years he has owned them, and nothing on roofs, HVAC, etc. Maybe he thinks I should just fall in love with the 10 year old MLS picture? I KNOW the picture is 10 years old - because that's how long ago that a friend of mine lived there - and his car is in the picture.

I hope you didn't have any liquids in your mouth when you read this - but I thought I'd share a laugh with the BP Community today.

Last year, I was trying to buy 10 units on two adjacent parcels from one seller. We offered what they were worth to us, and the response was that they had a full price offer in hand from earlier in the day that they simply hasn't signed yet. (Funny how after 10 months on the market another ofer came in that same day....and at full price no less!). 

Wished them luck and watched as the properties still sat on the market.  It ultimately closed for less than we were willing to pay. 

One of the things that is a little concerning is this block has 8 buildings but about 5 different owners.  I can control who I approve as tenants - but not who they do.  

@Bill Tyler

When I was looking to buy my second investment property in Tucson, I saw a 4 plex near the U of A for sale for $170,000 that had been on the market for 4 months. I inputted all of the data in my spreadsheet and concluded that I would be paying too much if I paid over $155,000. I also looked at similar buildings in the immediate area that had sold recently and none had sold for more than $150,000 so I made my offer at that price. The seller's agent responded with something similar saying that another offer had come in at $165,000 and that the seller would not accept anything below that price. I withdrew my offer and watched as the property sat on the market for another 2 months before they dropped the asking price to $155,000. At that point I already had purchased my second property, and was no longer interested. Funny how things work. 

402-965-1853

This property has been listed several times over the past few years. It has now been on MLS for over 90 days - which is a very long time in the current market for Dallas/Fort Worth. I am pretty sure it will be listed quite a while longer.

Originally posted by @Bill Tyler :

This property has been listed several times over the past few years. It has now been on MLS for over 90 days - which is a very long time in the current market for Dallas/Fort Worth. I am pretty sure it will be listed quite a while longer.

 There is another possibility. The seller obviously is not desperate. So they are waiting until an out of state or out of area investor who is inexperienced comes and pays full asking price. Since the Dallas market is pretty hot, I could certainly see some using this strategy. Of course the seller doesn't care if it takes a long time to sell at that price because they bought for a substantially lower price and have good cash flow. 

Basically there are a lot of deals on the MLS, especially in Phoenix, where the sellers seem to be trying to use that strategy. Selling large multi-family properties that are 0.5% deals and won't cash flow unless you pay cash. I'm sorry, but Phoenix is not LA or San Francisco and that just won't work. Of course these investors from California come in and see prices and cash flow that all though it is terrible to us, looks good compared to their markets.

402-965-1853

This guy is a "pay me your rent in cash" type of landlord. Lol

Honesty and karma. Funny how those are related

Just goes to show as a buyer - figure out your max offer based on the financials of the deal, and stick to it!

As a seller - if you want the property sold, set a reasonable asking price and don't play games. You don't need to lie and make up other buyers to say that an offer that came in is too low - just counter.

Thanks for the laugh!

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