All Forum Posts by: Dustin Allen

@Kate J.

How much other units are listed for should be secondary to how much other units sold for. Has anything at all sold in this building yet? If not, you are going to have to wait for someone to set the bar or you’re just going to have to set it yourself. All the basics apply here. Drop the price if you have to move it, no showings means you’re listed too high. If you want to push it and try to set the bar high, raise it to where you think and be patient. Someone will sell eventually and then you’ll have actual data to judge yours on.

@Tyler Neison

Keep it as a bedroom and set it up as an office. Nothing wrong with an office with a closet. Definitely a problem when you have a bedroom without one.

@Jaima Knutson-Colson

In this case, I would look for comps for the home by itself and see what the value would be with no rental units. After that, look at the income projections for the rental units and assign a value using a cash flow model.

Of course, finding another house with two rental units that just sold would be best but that’s highly unlikely you’ll find a comp like that.

@Josh Wallin

You didn’t list any numbers relating to comps or true value of the property.  If you can present a low offer and show why that makes perfect sense in the current market, you can skip the whole offensive part and get right to putting a deal together.  Figure out what number makes this a deal for you and start planning your strategy from there.

@Kelby Middleton

If you are talking about all of the documents from your own transaction, you absolutely have a right to see every document. You should’ve been given a copy of everything you signed right after you signed it.

If you’re talking about a transaction that you weren’t a part of, you don’t have any right to see the transaction documents. The information that is public will be recorded and made public upon closing. Everything else is between the Brokers, Agents and their Clients.

@Jochy Perez

I just dealt with this on two properties in a row here in CA. The title company used a 3rd party company that issues and records a bond to protect the new buyer. Not sure if you have that option but worth asking at least. Additional costs for us were between $1-2k for liens around $20-30k.

@Princess Small

Backup offers give sellers more negotiating power if the first place buyer wants to start asking for credits or price reductions. Having a backup allows them to tell the buyer no. It is beneficial for the second place buyer in that they don’t have to compete a second time if the first contract fails. 

@Matt VanGorder

I always suggest making the offer. If you know that’s what you’ll pay for it, put it on the table. Many sellers won’t jump at it right away and will want some time on market before considering anything under list. We can’t know their true motivations though and your offer may be just what they were looking for. If you get rejected, circle back around to them if they’re still on the market later.

@Travis Church

What value are you going to bring to the deal? If it's listed on the MLS, why hasn't the other agent seen it and shown it to the buyer yet?

We would all love to get paid for just telling people about what is on the MLS but, unfortunately, we get paid to represent people in transactions or refer paying clients to agents who have never met them. If you know both parties, why not just introduce them and elevate their opinions of you for doing something good without your hand out?

@Gurleen B.

It depends.

Each scenario offers different benefits.

Higher Purchase Price with Credit - this will leave you with more cash in your pocket at closing but will also leave you with a higher DTI

Lower Purchase Price no credit - This Will decrease your payment and increase your cash flow but cost you more upfront.

Neither is wrong by any means. Be sure to check with your lender about the credit. There are limits on how much a seller can credit and they can vary by loan product and/or lender.