Question for Investor-Friendly Agents
Hey there, I'm in the process of analyzing a fix-and-flip home in my area. I live in a resort town, with a lot of second homes, so the market price for an average home is already pretty high. The home needs pretty major renovations, but in my opinion would be worth it *if* the seller is willing to come down significantly on their asking price. The other thing to consider is the original owner has died, leaving the estate to his sister and nephew to sell. Also worth noting that he took out a reverse mortgage on the home before he passed away.
Based on these circumstances, and also just in general, I'm wondering how investor-friendly agents out there approach sellers that have a home that is too overpriced for a fix-and-flip situation? Not asking for any super secret strategies, just generally what your approach might be? Thank you in advance!
i show the seller how i come up with the offer price by going back from my ARV, minus holding cost - minus repair - minus the profit i am willing to take on the deal. The offer also come with very high earnest money and no option period. I don't mind sharing with the seller how much I will be or my client will make on the home either. Seller then 1 declined which we moved on, 2. take it or 3. negoiate until we find a happy number. Disclosure everything. no secret about what we do
Good luck!
Quote from @Bryce Henson:We find resort town properties are generally over priced and the owners are very reluctant to back down from their list price. All of Huy's suggestions are good ones. However, I would look for properties that are not in resort areas as the resort properties will all be inflated and the owners very recalcitrant to take substantially less than their imagined value. Good luck.
Hey there, I'm in the process of analyzing a fix-and-flip home in my area. I live in a resort town, with a lot of second homes, so the market price for an average home is already pretty high. The home needs pretty major renovations, but in my opinion would be worth it *if* the seller is willing to come down significantly on their asking price. The other thing to consider is the original owner has died, leaving the estate to his sister and nephew to sell. Also worth noting that he took out a reverse mortgage on the home before he passed away.
Based on these circumstances, and also just in general, I'm wondering how investor-friendly agents out there approach sellers that have a home that is too overpriced for a fix-and-flip situation? Not asking for any super secret strategies, just generally what your approach might be? Thank you in advance!
Thank you both for your responses! @Huy N., that is some solid advice. Transparency sounds like a good policy. I appreciate your perspective!
@Steven Goldman You are definitely right about that. People from resort towns always feel like their home is worth a lot more than it is. All that to say, if we end up making an offer I will let you guys know how it goes! Thank you again.