How to handle Jerk Buyers on a "Foundation House" ?

1 Reply

Been trying to wholesale an MLS property with a huge margin that most people run from as it needs a wall re-bricked and floors leveled on one side of the building. People don't look at it as just another check to write for an already-quoted figure, but get an emotional reaction.

I have a better buyer who understandably wants a structural inspection on the Friday Morning and I know for fact he's an ultra big buyer though this is our first deal, but may or may not take the deal after the structural inspection.

On Thursday, going to show the prop to some buyers another wholesaler brought, and they already want price reductions without even seeing the property. I suspect it won't go especially well and I still have the other buyer interested, though not a certainty without the inspection.

As its an MLS property, and I have it offered at list price after it just had a big price reduction and I got it below list, I can say there are back-up offers above list, and certainly have lost properties for just that reason on MLS properties before.

I could suggest these buyers come back on the Friday, and then they'll realize they aren't the only buyers involved and can't name their price. Conversely they may take it without further inspection as its already at 46% of ARV and the quote to fix the foundation is $11K and the ARV is $1.0M on strong comps. After the brick and floors are corrected its just a straight fix & flip.

Most people get an emotional reaction to the uneven floors and bad brick on one wall and don't see it as just another to check to write - quite similar to a Meth house response.

What's a good way to handle lowball buyers throwing their money around and demanding price reductions, even though its already an on-fire deal? Once the price starts to slip, it doesn't stop.

Suggestions are appreciated.

@Burt L.

Have you considered closing on it yourself and fixing the two scary problems then retry it again at $750k?

Or go all the way and re-market for $1M.

Do you have a blast list of buyers set up yet? You could also try to go to a local real estate investor meetup. There's always a lot of people looking for deals at those places.

Don't let these buyers psych you out. You're the guy with the deal. You know what you've got.