All Forum Posts by: RJ Reynolds

The last thing I want is some unstable guy getting ticked at ME because he's losing the roof over his head.  The owner has to take some responsibility for the situation.  Definitely refer the seller to resources in the area that can help him get the job done.  Even offer to do 'drive-by's' to keep an eye on the property but don't put yourself in the middle of this family squabble.

Stay Safe

Yes, we utilize Exclusive Buyer Agency Contracts.  Don't be scared, we have solutions for those who are resistant to the notion of committing to working with us.

Besides, why would you want to work with anyone else when you are already working with the best :)

YES! 

Bought it, played it weekly at my home with others and formed great friendships AND ideas!

Once in a while we would even become the same "character" when starting the game and try strategies other than the ones typical to the way we play just to see what would happen.

Have fun and if your in Massachusetts.. INVITE ME  it's fun (but then I'm a Monopoly fan as well)

Yes, I'm an agent so I hope you'll not discount what I have to share :)

First, the buyers that "dumped" their agent are the reason agents who represent buyers must have exclusive contracts.  It was the agent who brought the buyer to the home in that they made the buyer aware of the home being available for sale.  It was the agent who educated the buyer, showing them however many homes, and discussing pricing, terms etc. It was the agent who was "dumped" and not paid for their services and if they were working without a contract it's their own fault.

I hope investors can see why an agent might require a contract from this thread...

Now back to the main point.  Each state has their own requirements so be careful with anything you hear here.

My take is that a buyer and seller come to the table and there is a basket on the table. Into that basket goes the deed for the house, the debt on the house, the cost of the sale and the money for the sale.

So the question is, does the bill from the Real Estate Agent get included in the cost of the sale.  Yes, it does.

However you negotiate the wording in the purchase & sale contract, the fact is the agent has earned a commission on the sale. 

When negotiating with a buyer to sign a contract, I offer to show all houses available on the market AND all houses NOT on the market if I can convince the owner to the possibility of a sale.  That never happens but it makes for interesting discussion with the buyer who never thought of simply choosing a house and saying.. "can you ask the owner to sell that to me!"  In any case, the buyer has to agree that whatever the circumstances, I will be paid my commission. Alternatively, they can agree to only look at homes where the homeowner, through their listing agent, has offered to compensate me.

I'm sorry to hear that you had an agent who did not get the job done for you. The fact is that homeowners who use a qualified agent, NET more money for the seller than those who do not.

Having said all that, I have never been faced with the actual situation so maybe someone who has can chime in...

Negotiating both terms and price is absolutely essential. How long it takes you to develop the necessary skill depends on a) where you started, b) how much you "practice" and c) your personality type.

It has taken me, as a Real Estate Professional, a great deal of time to develop the negotiating muscles necessary to confidently assure my buyer clients that we have the best deal possible.  

Someone who is purchasing a single home to live in every 5-10 years obviously doesn't have the experience to negotiate the deal for themselves, so they hire me and my commission is paid out of the proceeds of the sale.  Trust me when I say that the amount of money, time and anguish I save my clients is totally worth it.

That said, as an investor, you may not want to hire a professional negotiator as it's a skill you absolutely want to develop for yourself.  

First step: Completely qualify the sellers mindset with regards to 'need' to sell vs, 'interested' in selling. If they are "interested" walk away.. as an investor you simply will not talk them down to a price worth paying.  You could use the opportunity to practice your negotiating skills in full knowledge that you are NOT going to buy the home.  Personally, I'd save my energy for one that might result in a purchase.

Second step: Stay in conversation a lot of probing questions that tell you everything about the house, the work they've done on it (and not done on it), what they love about the house, what the hate about the location and so on.. drill down and find multiple ways of asking the same question in case your not getting clear responses.  They may begin to get annoyed so you make sure to express interest in solving their problem.. (buying their house).  Don't talk price right away.. just keep asking questions, expressing interest if the right terms and price can be negotiated.

Third key step: Do NOT become emotionally involved with the outcome.  

Fourth: By now you should know alot about the house and the seller as you've developed a feel for the situation as you talked.  Use that knowledge.  Did you learn that they have a new job and need to get this off their plate ASAP? Great, ask them "If we can agree on price and terms, are you ready to close tomorrow?"  Note that you are not asking them to close tomorrow, your asking if the COULD close tomorrow so don't panic if they say yes.

NOW you have a good idea of motivation.  Thank them very much and let them know you will be back in touch to make an offer.

In my opinion, negotiation is almost over at this point. You discover what the house is worth to you and offer that, not a penny more.  You try to make all other terms so appealing to the seller that they say Yes.  If they don't, you thank them for their time and wish them luck.  

Call back in a week.. and offer it again.

The seller spent the time between the qualifying conversation and the offer thinking how great it would be if you bought the house so the whole situation would be done with.  The offer was so low they said no but a week goes by and nothing happens... the thrill of possible sale replaced by the drudgery of trying to sell.

Don't forget to represent yourself as the person who can solve the sellers problem.  All other buyers will pale in comparison as they try to nickle and dime the seller. You aren't doing that. Your telling the seller what you can afford in order to solve his problem.

There are likely state specific criteria you'll want to have covered so look for responses from Illinois investors.

Only slightly off topic as I'm responding to the "carrying the right Insurance" thread...

My sister was in the last stages of a year long renovation of her home. It was extensive including foundation work, new addition, full electrical work etc of a 200+ year old farm house we grew up in.  

drum roll please... 

It burned to the ground and was so catastrophic that they could not determine what caused it.  Did the temporary electric short out? Did the warming blankets curing the new foundation short out? Was some heater or other place improperly and left running overnight?  We will never know.

double drum roll please...

She had discontinued replacement cost coverage the year before... "saved" herself $8000 that year only to spend considerably more bringing the house back to all it's glory

Be careful in the insurance coverage you select. Short term gain could result in long term loss. Fortunately, she had the resources to rebuild and a year later, was back in her home but the cost was considerable and could never be recouped in a sale situation.

On a tangential note, I'm curious about others thoughts on investing in a property that is a unique style.

My advice to investors, particularly first time investors, is to purchase the most popular styles as a starting point as I believe the nique styles can constrain the buyer pool.

When it comes to the "small dog" question I must say I was amused that so many landlords, if they allowed pets, had a "small dog only" policy.  All I could think was "these people have never had a small dog".  Small dogs are great but I'm a big dog person myself. Our small dog was inherited and is wonderful to have around but phew, small dogs require so much attention!  Meanwhile our big dog is quiet, respectful and only barks for good reason (intruder alert for example...).  It's just been my experience with dogs over the decades that the big ones are less noisy & damaging and yes, I'm assuming responsible dog ownership & training.

It also surprised me that more landlords did NOT have a problem with my bird. Yes, birds can be noisy and when they start screaming for whatever reason, if there is no one home to discipline them, they can keep going and going and going...  Also, if the birds owner aren't careful to monitor them when out of cage, they can do a significant amount of damage to woodwork.

Good discussion, thanks all, I'm searching for the other threads and digesting as much as I can.  I don't expect all landlords in every situation to allow all pets and I do want to find ways to convince more landlords to allow at least some pets if at all possible.  

I appreciate all the responses, even the blunt ones :)

Thank you all very much.  My goal is not so much for myself as I'll be buying my next home, however I do want to influence others.  If there are issues that can be solved to the satisfaction of the landlord then I'd like to find it and fix it.

For example, there are many concerns about damage which I completely understand as Dogs scratch at doors and their nails can scuff up hardwood.  As a responsible pet owner I take reasonable precautions AND as someone who typically owns her own home and is simply in transition, I am ready and willing to repair the damage or pay for the repair. That said, I also know that there are 'tenant friendly' laws which may prevent the appropriate recourse for landlords which is to be able to hold a larger deposit against damage or something like that.  I intend to learn more about that in hopes of finding a solution that will work for at least some tenants & landlords. If it requires changing the laws it might take longer but I believe it's worth doing to keep pets with their people. 

Of course as soon as I become a landlord, I'll have yet another perspective. I was one once upon a time and allowed pets without difficulty. Perhaps I was just lucky.

note: as a foster parent, we were not allowed to have certain breeds either so it's not just insurance that has concerns.