As an investor's agent I always get confused when a client finds a property, inspects it for repair costs, runs the numbers and then waits for the list price to drop before they submit an offer.
Here's my question: Why leave the property on the market for other people to steal your target purchase when you know what you can buy it for and how much you'll make from the purchase. at the right price? You have no idea what they will or will not accept.
Examples of When Buyers Aren't Afraid to Ask:
1. I had a listing that had an appraised price of $85k. The sellers listed it at $79k. They accepted an offer of $63k after only 21 days on the market and also offered to do update work prior to closing.
2. A HUD property that had been on the market for almost a year. Listed at $250k, then $242k, $235k...you get the point.
My buyer placed a bid each day for $140k (the on line auction had a daily closing). We did this for about 30 days. There was no winning bid.
The price was reduced again, this time to $195k.
I asked my clients if they wanted to place the same bid.
READ CLOSELY!!!
They did not want to submit a bid, as they had been, at $140k.
The next day the auction closed with the winning bid at $98,000.
My clients were outraged that they lost the opportunity to purchase the property. Not to mention that up and to that point they were offering over $40,000 more than the winning bid.
Please learn from these experiences...
PUT IN AN OFFER!!!
Leave a comment about any experiences you have had or heard of...good or bad.
Saturday, January 19, 2008
Lost. $40,000 in Equity. Reward Offered
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3 comments:
Hi-
Thanks for stopping by today.
We aren't bidding on the property because at this time we are not in a position to buy. We need to finish a rehab and sell it. If the house is still available at that point we will than bid. If it is not available than we will move on to the next property. I wish we could bid right now -- but the timing for us just isn't right.
I understand what you are trying to say though : )
Ryan,
Good point with this article, especially considering the current real estate market. I also believe in the law of numbers, where submitting multiple low-ball bids will yield one or two deals that meet your price criteria (I should probably doing this now since I'm looking for a property).
Btw, thanks for posting to my most recent article.
Rob
Ryan,
Thanks for the recent post. I'm slowly getting things together with the site. I really like the slide.com widget you have on your page at top. I need to learn how to do that.
Laters....Rob
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