Land flippers sent out direct mailers with blind offer

Member since 2022 · 25 posts · 4 votes

Hi Professionals, as a land flipper in FL, we send out thousands of direct mailers with blind offer, when seller calls back, we negotiate the price due to some material facts of the land, did not honor the offer price we sent initially. Is it illegal, not ethical, violation, red flag or fraud? or grey area? or anything wrong business practice?

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Account Closed

Rental Property Investor · New Braunfels, TX · Member since 2022 · 408 posts · 408 votes

Quote from @May Lin:

when seller calls back, we negotiate the price due to some material facts of the land, did not honor the offer price we sent initially. Is it illegal, not ethical, violation, red flag or fraud? or grey area? or anything wrong business practice?

It is legal? As @Account Closed says, yes until a contract is signed. Is it ethical? I think you know the answer.

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Account Closed
Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
2y
Quote from @May Lin:

Hi Professionals, as a land flipper in FL, we send out thousands of direct mailers with blind offer, when seller calls back, we negotiate the price due to some material facts of the land, did not honor the offer price we sent initially. Is it illegal, not ethical, violation, red flag or fraud? or grey area? or anything wrong business practice?

You can offer anything you want. It isn't a contract until both sides sign an agreement. (Okay, for those of you in the know, sometimes judges will enforce an agreement written on a napkin or a verbal agreement, but that is because the parties had a "meeting of the minds".) That isn't what we're talking about here.
Just be sure that if someone accepts your offer, you're ready to proceed to escrow.

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Account Closed
Rental Property Investor · New Braunfels, TX · Member since 2022 · 408 posts · 408 votes
2y
Quote from @May Lin:

when seller calls back, we negotiate the price due to some material facts of the land, did not honor the offer price we sent initially. Is it illegal, not ethical, violation, red flag or fraud? or grey area? or anything wrong business practice?

It is legal? As @Account Closed says, yes until a contract is signed. Is it ethical? I think you know the answer.

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
@May Lin
When you send the offer is it signed
If so then you can open yourself up. It’s probably not worth it for them to go after you
Is what you are doing super shady and someone I would ever want to consider doing any business with. No way.
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May Lin
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Member since 2022 · 25 posts · 4 votes
2y
Quote from @Account Closed:

Quote from @May Lin:

Hi Professionals, as a land flipper in FL, we send out thousands of direct mailers with blind offer, when seller calls back, we negotiate the price due to some material facts of the land, did not honor the offer price we sent initially. Is it illegal, not ethical, violation, red flag or fraud? or grey area? or anything wrong business practice?

You can offer anything you want. It isn't a contract until both sides sign an agreement. (Okay, for those of you in the know, sometimes judges will enforce an agreement written on a napkin or a verbal agreement, but that is because the parties had a "meeting of the minds".) That isn't what we're talking about here.
Just be sure that if someone accepts your offer, you're ready to proceed to escrow.

Thank you very much for your response, Mike! The offer I sent out does not have my signature on it and I add a contingency in the agreement: " Buyer can cancel the agreement any time due to the land investigation". But some sellers got pissed off, because I did not honor the initial offer price. The initial offer is a blind offer, I did not really dig and see if that is the price I want. So I wonder, is it normal practice to send the blind offer as direct mail? Thank you
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May Lin
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Member since 2022 · 25 posts · 4 votes
2y
Quote from @Chris Seveney:

@May Lin
When you send the offer is it signed
If so then you can open yourself up. It’s probably not worth it for them to go after you
Is what you are doing super shady and someone I would ever want to consider doing any business with. No way.

Thank you very much for your response, Chris! The offer I sent out does not have my signature on it and I add a contingency in the agreement: " Buyer can cancel the agreement any time due to the land investigation". But some sellers got pissed off, because I did not honor the initial offer price. The initial offer is a blind offer, I did not really dig and see if that is the price I want. So I wonder, is it normal practice to send the blind offer as direct mail? Thank you
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May Lin
OP
Member since 2022 · 25 posts · 4 votes
2y
Quote from @Account Closed:

Quote from @May Lin:

when seller calls back, we negotiate the price due to some material facts of the land, did not honor the offer price we sent initially. Is it illegal, not ethical, violation, red flag or fraud? or grey area? or anything wrong business practice?

It is legal? As @Account Closed says, yes until a contract is signed. Is it ethical? I think you know the answer.

Thank you for your response, Kristi! To me, I think it is ethical. Because in the contract, I have a term" buyer can cancel the agreement anytime due to the investigation of the land". And the initial offer is not signed by me even. But some sellers still got pissed off. I can not understand.
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