NEED ADVICE ASAP !!!

37 Replies

Im a wholesaler and A realtor reached out to me with a potential deal and has agreed to show it to me Friday before it is listed. Realtor says the house was appraised for 150k and the owners are sticking to it and are “not interested in a low ball offer” Houses in the area consistently go for 200-215k Is this even worth me going to see??? Is this even considered a “deal” if the only thing they are going to take is what it’s appraised for??? Any wholesalers have any experience working with realtors before and been in a similar situation???

Need to know what the repairs are but likely this is so slim of margins

@Caleb Heimsoth Realtor said that they repairs wont be much....house just needs to be updated. So I'm guessing maybe around 5k. I agreed to go see the house just so I could get the address. Once I have that I'll check some comps reports and see. I have a few rental property investors that would buy it at 150k but that obv means I'd have to offer probably 140k....I guess we will see. Maybe they are just trying to play hard ball. 

Hey Jake.  You did not give a lot of details about the situations but from what you did give I would highly suggest that you walk away.  

If a realtor is calling you then the sellers have already signed an agreement with him, with his broker actually if you want to get specific. They can not then legally sign another contract with you.  You would be buying this house from a listing agent.  You will be required to show a proof of funds if you do decide to make an offer otherwise your offer will be rejected. Also these people do not sound motivated at all which is your #1 criteria if you are trying to wholesale.  

I love it when people say that the house was appraised for "XYZ.''  A no-bs very detailed appraisal from someone who is licensed to do so in my area goes for around $1,000. Ask to the see the appraisal from their licensed real estate appraiser that was done anytime this year.  Bet you a Coke they can't.

Treat this property as if you were buying it off the MLS because that is exactly what you would be doing.

Just my 2 cents.

no house is updated for 5k, that’s 20-25k minimum.  At which point this isn’t reallt a deal.

You’ll need money to close this.  Can’t really assign the contract 

I’m not entirely sure if that’s possible. I find that unlikely even if it is

@Caleb Heimsoth What's the difference if I make the contract to be assignable or if the realtor does? Sorry....just getting started with all of this. 

@Chris Turner Thanks for the input....I just asked for the appraisal. We'll see what she says. 

@Chris Turner I gave all the details I know so far....I don't even have the address yet. Realtor said she would give it to me if I wanted to come see it. 

Hey Jake, I definitely agree with @Caleb Heimsoth on the cost to update. Even minor updates will surprise you on how quickly $5k will blow through. Just my input.

So in a nutshell I should just walk away and try to communicate with the realtor what type of property I'm really looking for just in case she finds one in the future ????

I just don’t know how what you’re trying to do with the contract would work.  The realtor will ask for money you won’t have any and they’ll balk at your offer.  That aside I don’t think this is a deal. 

I was under the impression I wouldn’t need money because the contract would be assignable....therefore before closing I would contact my cash buyers to take over the property....what am I missing?

@Chris Turner Realtor said “typically the buyer pays for the appraisal but she did it as a courtesy” and said she would show it to me if I get the property under contract.

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Appraisals are usually higher than a house is worth on the open market. The realtor knows that. I'd say your right about them playing hard ball.  I'd be very leery of paying the appraised value of a house, especially if I'm wholesaling.

Also, DO NOT trust a realtor's estimate of repair cost. I recently made that mistake and I'm currently paying for it. He said repairs would be $10,000-12,000. I'm currently looking at $20,000+.

Originally posted by @Jake Berwind :

Chris Turner Realtor said “typically the buyer pays for the appraisal but she did it as a courtesy” and said she would show it to me if I get the property under contract.

 She won't even show you the house unless you get it under contract? Tell them to kick rocks dude. 

@Blake Palmer No...she won’t show me the appraisal unless I get the house under contract. I’m going to see the house tomorrow.

Originally posted by @Jake Berwind :

Blake Palmer No...she won’t show me the appraisal unless I get the house under contract. I’m going to see the house tomorrow.

 Oh ok. My bad. 

The Relator isn’t being very transparent...that would concern me. She won’t give you the address yet and won’t show you an appraisal she says she has...red flags to me

As other have said, you want to buy the house below the appraised amount to have indent equity. This is the value you will be trying to sell to someone else.

Sales 101:

Don’t be afraid to ask for something you don’t have.

2.) they may say they want $150k but most likely take less if they are in rush to sell it. Also, they may take less once they realize that their house needs more than $5k in upgrades/repairs.

3.) good luck. I am interested in hearing the outcome of this.

Originally posted by @Jake Berwind :

@Caleb Heimsoth Realtor said that they repairs wont be much....

Show me a retail realtor that says anything different. Went to see a property a few weeks ago that had "minor" repairs per listing realtor that had major foundation issues (cracks everywhere inside and out)...

You need to get the ARV right for the property's specs and go from there.

My two cents.........

1. I've never heard of a seller buying an appraisal before putting on market, they usually just get a Realtor CMA.

2. You're letting this agent walk all over you because you are new and inexperienced. If they want to sell the house they can give you the address, pictures, and "appraisal" and you can make your decision. Investing is a numbers game and if you don't have numbers, you can't calculate the investment. 

@Jake Berwind if little to no work, , yes of course. Even if you are all into it for 160, and net 200k, thats good, assuming it sells in 6 months or less,  good luck 

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