I am currently bidding on a SFH that was listed for $86,900. In discussing with the agent I had planned on putting in an offer for 65K. However, I decided that I wanted to go in a bit lower at 60k with my absolute max at 65K.
The agent then told me that the couple would likely not accept that offer and that in fact 65K was too low. The 65k is less than what they owed on the house. He also noted that if they don't get closer to the asking prices then it would go into a short sale.
The numbers work for me as a rental if I can pay 65k. However, I am wondering if I should wait for it possibly to be listed as a short sale. I am concerned that if it goes to a short sale that I could risk not getting the property as it would be more competition.
I am a new investor and would appreciate any direction on how to proceed.
Make the offer. It doesn't matter what the agent says. The seller can say yes or no. I purchased one a couple years back where the seller had to pay about 70K at closing because they were so far upside down. The wanted the property gone and I took it off their hands. You never know what a seller will say until you try.
A good realtor would not talk you out of an offer. If they know the house is hard to sell for what owner owes they should advise the owner to get funds somewhere else for the difference.
Make the offer that works for you. Do the negotiations with the seller, not the agent. Whenever you make an offer you learn and grow as an investor, whether you get the property or not. Put in the offer, don't go by the agent. If the agent does not want to, them he is not the right agent for you.
That's my two cents. Good luck with your purchase 😊
Thanks everyone, I appreciate the advice and reassurance to stick with my numbers and make the offer.
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