First off, I would like to say that i have successfully launched my first marketing campaign, and I am feeling very excited.
~first call from a seller~
A day ago, I received call from a seller I sent a letter to. He said he had a offer for 60k from another buyer. He also stated he had the property apprised and the appraisal was for 120k. The property is set for foreclosure the beginning on Feb. What I didn't find out was what was needed to be done to the property. How should I handle those situations if an offer is on the table? How can I be better prepared to negotiate those type of deals, in such a short notice?
Congrats on getting your first lead, but you're missing a lot of information about this deal that you need to know to make an informed decision. Most importantly, if the house is going into foreclosure, you need to know what the existing balance is on the loan and what fees would need to be paid to make the loan current. You need to know the actual ARV of the home, not what the seller told you it appraised for. You need to figure out how much the house needs in repairs. You also need to check out the title to determine how many liens and how much is owed in back taxes. Once you have all this information, you should be able to determine if you have a deal worth investing in.
Additionally, the seller telling you there is another offer on the table is pretty much irrelevant. You need to do your due diligence and figure out what you will pay for the house. Chumps overpay for houses all the time - you don't want to join that crowd.
Thanks for that. I need to know what information I was missing from the beginning. The part about what seller said he had an offer for, you say that is irrelevant. Thanks. Because when he first told me this, I wanted to start a bidding war. In which I thought about is not very productive for my type of work. Chris, again I say thank you.