Still Marketing Property After Offer Rejected

14 Replies

So I totally offended the seller of my first wholesale offer...but I am confident it was the right offer for the deal. I also feel compelled to put together a packet and market this property to gain experience...which would likely mean that I need to call the seller and ask her if I can come back to the property and start this process (taking photos and drafting full scope of work).

Any thoughts or suggestions?

If you don't have a deal with the seller, do not market her home. You'll get a chance to gain experience with marketing a home, but one you actually get under contract or buy. 

How far apart are you on price?  What is the seller's level of motivation?

You don't market a property you don't have under contract.. I don't know where you started on price in your negotiation (your start below MAO and work up), but it sounds like you left no room for negotiated. Regardless, if you got up to your MAO and they did not accept, pass for now. Put them on a follow up list and call them back in a couple weeks and see if the house is still available and if they reconsidered your offer or not. Then follow up again and again in increasingly spaced intervals. You never know, they may change their mind and become more motivated later. But for now, move on and look for the next lead and don't waste anymore time worrying about this one. It takes a lot of offers and leads to land one deal.

Originally posted by @Jon Klaus:

If you don't have a deal with the seller, do not market her home. You'll get a chance to gain experience with marketing a home, but one you actually get under contract or buy. 

How far apart are you on price?  What is the seller's level of motivation?

Thanks, Jon. The dilemma is that she is really motivated, but out of touch with reality...my offer was correct for the property...ARV $106,000-110,000 based on recent comp analysis minus a $28,000 rehab...fixed costs...minus exit...minus desired profit put me around $55,000 on the offer...she will not disclose the least she will take...

Originally posted by @Gary Dashney:

You don't market a property you don't have under contract.. I don't know where you started on price in your negotiation (your start below MAO and work up), but it sounds like you left no room for negotiated. Regardless, if you got up to your MAO and they did not accept, pass for now. Put them on a follow up list and call them back in a couple weeks and see if the house is still available and if they reconsidered your offer or not. Then follow up again and again in increasingly spaced intervals. You never know, they may change their mind and become more motivated later. But for now, move on and look for the next lead and don't waste anymore time worrying about this one. It takes a lot of offers and leads to land one deal.

 Thanks for the advice, Gary.

Put her on the back burner. If she's truly motivated she'll come back around. Depending on what her personal timeline is, I'd follow up right around the first frost - offer a polite reminder about covering hose bibs, or something along those lines. And of course tell her you're still interested in purchasing. 

Originally posted by @Mark Gallagher:

Put her on the back burner. If she's truly motivated she'll come back around. Depending on what her personal timeline is, I'd follow up right around the first frost - offer a polite reminder about covering hose bibs, or something along those lines. And of course tell her you're still interested in purchasing. 

 Thanks, Mark

So let's say you went against advice and did market this to your buyers. Do you think some buyer might go around you since you don't have it under contract?

That is a likelihood...on the other hand, this may be a good opportunity for me to "get my feet wet" in wholesaling...I would take a finders fee on this one if the buyer accepted their offer...I wouldn't even mind doing the due diligence (pulling comps, scope of work, etc...)

Originally posted by @Brandon Sturgill:
Originally posted by @Jon Klaus:

If you don't have a deal with the seller, do not market her home. You'll get a chance to gain experience with marketing a home, but one you actually get under contract or buy. 

How far apart are you on price?  What is the seller's level of motivation?

Thanks, Jon. The dilemma is that she is really motivated, but out of touch with reality...my offer was correct for the property...ARV $106,000-110,000 based on recent comp analysis minus a $28,000 rehab...fixed costs...minus exit...minus desired profit put me around $55,000 on the offer...she will not disclose the least she will take...

 Sorry, but I don't think that constitutes being "out of touch with reality".  A seller really has to take a beating on a property for it to have enough profit for both a rehabber and a wholesaler.  Being unwilling to take $55K for a property that's arguably worth about $80K as-is seems quite reasonable to me.  Takes a truly desperate seller to be willing to take a $25K bath for us investors to make a profit.  As in "I really need to get whatever I can for this property and nobody is willing to pay what it's really worth in this condition."

Did you show the seller in black and white that it will cost $28K in rehab or is that a number you pull out of the sky to get a better deal?


Joe Gore

Huh what???

Why would you want to market a property you don't have tied up and really have no reason you will?  Maybe if you had a verbal and were just waiting on getting the signed paperwork I could see prepping the marketing stuff (Though not sending out anything).

Going the opposite issue then most are saying, what if you have someone interested in the deal you market and you don't have anything to give them?  Good way to have a buyer ignore everything you ever send them again.

Originally posted by @Jon Holdman:
Originally posted by @Brandon Sturgill:
Originally posted by @Jon Klaus:

If you don't have a deal with the seller, do not market her home. You'll get a chance to gain experience with marketing a home, but one you actually get under contract or buy. 

How far apart are you on price?  What is the seller's level of motivation?

Thanks, Jon. The dilemma is that she is really motivated, but out of touch with reality...my offer was correct for the property...ARV $106,000-110,000 based on recent comp analysis minus a $28,000 rehab...fixed costs...minus exit...minus desired profit put me around $55,000 on the offer...she will not disclose the least she will take...

 Sorry, but I don't think that constitutes being "out of touch with reality".  A seller really has to take a beating on a property for it to have enough profit for both a rehabber and a wholesaler.  Being unwilling to take $55K for a property that's arguably worth about $80K as-is seems quite reasonable to me.  Takes a truly desperate seller to be willing to take a $25K bath for us investors to make a profit.  As in "I really need to get whatever I can for this property and nobody is willing to pay what it's really worth in this condition."

 Jon, thanks for commenting. I can see that there are two sides to the equation. From an investment perspective, I am blind to personally compelling issues around a property. I can see her point about not wanting to let go for the fear she is being ripped off...but truth of the matter is this was an accurate offer. There is really no way around the $28k rehab...and no way around fixed costs...and exit costs...and holding costs. If this was a wholesale, wouldn't the rehabber take all these same factors into consideration?...

Originally posted by @Joe Gore:

Did you show the seller in black and white that it will cost $28K in rehab or is that a number you pull out of the sky to get a better deal?


Joe Gore

 Hey, Joe. Thanks for commenting. I did not present a formal scope of work, but described what would need to be done to bring the house to "market ready" condition. The number is pretty firm...definitely not an arbitrary guestimate. 

Originally posted by @Shaun Reilly:

Huh what???

Why would you want to market a property you don't have tied up and really have no reason you will?  Maybe if you had a verbal and were just waiting on getting the signed paperwork I could see prepping the marketing stuff (Though not sending out anything).

Going the opposite issue then most are saying, what if you have someone interested in the deal you market and you don't have anything to give them?  Good way to have a buyer ignore everything you ever send them again.

 Thanks, Shaun. I think doing this as an exercise is good practice. I don't have a problem "modeling" a deal so I can start out ahead of the curve. I think the marketing would just be a dry run on everything I have studied and learned about wholesaling...

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here