Need advice before tonight's meet

[Debbie]

Hi Fambly,

We put our duplex up for sale on July 30th. We've had 3 Open Houses. We're done with open houses. We planned to try to sell for 3-4 weeks. If nothing happens then it goes back to renting @ 850/mo per side. We can always try again in early spring.

Anyway.....we've had one same interested potential buyers since day one. This is boyfriend/girlfriend with Mom tagging along (no realtor/agent involved). They're crazy about living in one side (one we updated on). FYI- they're not interested in buying whole duplex but that's okay because each unit has it's own tax id.

This past Sunday during open house, the mother admitted to me that they've spent time looking at other houses in the last few months. This is the best they've found. Mentioned that she'll have realtor call us.

Last night, realtor called us. Said buyer need her for hand-holding purposes and helping buyer get financing. Mentioned that it is expected that we are to pay her 3.5% commission and if we're not interested, there's plenty of other houses for them to put in an offer. I'm thinking: Yeah right....nevermind that the mother already told me they looked and liked ours the best. Nevertheless, is this realtor nuts?!?!?!

We agreed to meet tonight @ 6pm. I plan to tell them that we have proof that we priced it under the last comparable SOLD home in this subdivision. We priced it at $84,900 per side. The last SOLD identical unit was sold for $88K in 2005 and that's the lowest one. Second lowest sold for a identical unit was $93K in 2005 or 2006 (I forget now).

Here's my thoughts-----

In front of their realtor, I will mention that they (buyers) have four choices:
1) Deal with us without realtor
2) They pay their realtor's commission
3) With realtor, we raise the sales price to compensate the commission costs
4) Seller Finance for that 3.5% commission ($2,971.50) for 12 months, interest free or 24 months with 5% interest.

Any advice/suggestions? Please hurry with your response because there's a meeting tonight at 6pm (did I already mention that?)

Thanx a bunch!!!!!!

[starkey]

you did not hire the realtor they did. dont dont give in they want the property if there comming back.you explain you can help them with financing. use your resoures here.contact a mortgage broker to help them. if they can qualify for a loan it wont be hard to get them financed

Thanx Starkey! You are correct that we didn't hire nor request for realtor. Plus, the potential buyer came every Sundays since July 30th.

Question for you, Starkey.....Forgive me if I'm mistaken...perchance your name is Billy?

Again Thanx!

[mike_mn]

I would skip out on option 4... Oh good! I didn't really want to do that!

If you are that confident in your pricing Yep!and they want the house that badappears to be, they will pay the commission fees. And raising the price to cover the commissions doesnt affect you taxwise anyway, it only affects them, hmmm, I didn't think of it that waythey start with a higher basis if a rental buyer only interested as homeowner, no rental....your selling basis is lowered by the commission amount and sellers closing costs. Very true! I'll include this statement tonight!

I would tell the buyer in front of the agent as well, that 3.5% for writing an offer without showing you and houses is a little steep. 2.5% maybe HA! One penny would be little steep in this specific case!...it is free money for the agent the way I see it. Anything he is offered he should take. Otherwise find another one if they must...


I thank you Mike! I will make sure the agent hears me speak to the potential buyer!

Debbie

Note to Mike:
Oop! Sorry Mike! I thought I clicked on "Quick Reply" until too late. My apology for "editing" your post with my responses!

[starkey]

no my name is not billy. he is smarter than me cause i cant even figure out how to post my own thread . i emailed a kind person who told me to click on new post under cp put it does not appear here on my old computer. my name is mark could luck on your deal

[Aldo]

Needless to say, this post is long after your meeting and you haven't yet posted the outcome. In the event that there is ongoing negotiation, I have one pro and one con for your situation.

First the con. Unless your area is different than much of the country, prices are softening and your comps may no longer be valid.

The pro is to tell the potential buyer that she doesn't need a realtor to hold her hand. While I understand her need, she can get virtually the same help, free, from the (reputable) title company she is going to have to hire anyway. A little known fact is that title companies do that, though all do not help with selecting a lender.

[Debbie]

We're drinking Champaign......













NOT!

First off the buyer was almost 30 minutes late while we and the agent waited. We were getting ready to leave when the buyer showed up.

While the agent acknowledged that it's a very nice home with one wall is slightly bowed (HUH????? What bowed wall???) but there's too many children in the neighborhood.

Then, the agent had the nerve to make a real big deal one part of the ceiling that had truss lift problem back in 1995 with no further problem. Jeff just simply did cosmetic fix.

We provided the report from AmeriSpec ---- guess what? The agent totally did not bother to take a look at the report and did not encourage the buyer to read it.

Then, they wanted to look at the other side of the duplex. 15 minutes later, they said "we'll call you".

Not one word of "hey, here's my offer" at all.

*SIGHS*

[thepower]

Tire kickers...:cheesy:

[Randy (SELA)]

Debbie,
If you really want to sell, maybe you should consider using a realtor. Adjust your price to include realtor fees. MLS listing will get you a whole lot of exposure. Try to get a 90 day listing

[Debbie]

Randy,

Actually late last night, we decided to rent out one side and list the other side with Re/Max. I think your idea is good about raising to compensate the commission since we had already underpriced the unit in the first place.

Wouldn't it be ironic should that buyer comes back for the 6th time only to find that the sales price has gone up? Hehehehehehehe....:scream:

[ligroce]

don't Sweat The Small Stuff And Everything Is Small Stuff..

Missed Me??? Lightening Got My Computer Back Now After A Week

[Debbie]

don't Sweat The Small Stuff And Everything Is Small Stuff..

Missed Me??? Lightening Got My Computer Back Now After A Week


Heck YES! We missed ya!

Personally, I thought perhaps you might've gone on couple weeks vacation. I was going to wait til this coming Sunday before I check up on you.

Sure am glad all is well with you in spite of your computer....

[TommyOH]

Welcome back Larry, sorry about the computer!

[Debbie]

Here's the update....

After putting our duplex up for sale on July 30th, we did do FSBO with three "Open Houses".

Effective today, we are listing with Re/Max for one side.

We put the ad out on the newspaper for yesterday and today to rent out the other side. Received several calls yesterday and still getting calls today.

One of the potential tenant's credit, criminal and employment checks has been checked out so he's approved. Signing M2M lease is tomorrow morning.

Considering that there was a problem of tenant pool few months ago, we're very surprised that we now have a waiting a small list of pre-approved potential tenants in case the one side doesn't get sold. Let's hope that we'll get equally interested potential buyers as well very, very soon!

[TommyOH]

That's great Deb, crossin fingas for ya!

[Aldo]

don't Sweat The Small Stuff And Everything Is Small Stuff..
Better said, it's "Don't sweat the petty stuff and don't pet the sweaty stuff". Not sure where I heard that, but it's good.

[ligroce]

Hope not to offend any Realtors on here, but I listed my new home with a realtor and I caught them using my home to sell other new homes. what a bunch of crooks... NO WAY again will a realtor be showing my new home.
http://www.custombuilthomesforsaleinkentucky.com

[Debbie]

Whoa! I hope you sent a letter of complaint to the Realtor Superior thingy....

[ligroce]

Whoa! I hope you sent a letter of complaint to the Realtor Superior thingy.... The Realtor's in this town don't have a Realtor Superior thingy" They are the the "thingy"..hahaha.. They expect everyone to :praise: them..not me I :whip: put them to going. :lol:

[mike_mn]

Hope not to offend any Realtors on here, but I listed my new home with a realtor and I caught them using my home to sell other new homes. what a bunch of crooks... NO WAY again will a realtor be showing my new home.
http://www.custombuilthomesforsaleinkentucky.com


huh? You won't allow a realtor to show your new home for sale? Am I missing something? Do you mean you won't allow a realtor to list your home? or Show period?

[ligroce]

huh? You won't allow a realtor to show your new home for sale? Am I missing something? Do you mean you won't allow a realtor to list your home? or Show period? At this point and time Wolmic don't intend to let the local yahoo's here show it. I'm sure that there are some real professional realtor's out there, but have not come accross any in this city of dodge. LOL Mike I might let you list it. I'm sure that you would do a good job. I could do the showing for you. Hahaha

[mike_mn]

At this point and time Wolmic don't intend to let the local yahoo's here show it. I'm sure that there are some real professional realtor's out there, but have not come accross any in this city of dodge. LOL Mike I might let you list it. I'm sure that you would do a good job. I could do the showing for you. Hahaha

The reason I think it might be a mistake not to let realtors show it is that selling a house is all about traffic. The more traffic, the better the chances of finding your one sucker to buy your house. Keep this in mind, a realtor is not in control of the decision of which house to buy. It is the customers decision(although, the realtors seem to think it is theirs sometimes...). Even if the intention is to bring a buyer through your house to get them to purchase preconstruction down the road, you might find that one sucker is being drug around by the local yahoos...and likes yours best.

Some food for thought...

[ligroce]

The reason I think it might be a mistake not to let realtors show it is that selling a house is all about traffic. The more traffic, the better the chances of finding your one sucker to buy your house. Keep this in mind, a realtor is not in control of the decision of which house to buy. It is the customers decision(although, the realtors seem to think it is theirs sometimes...). Even if the intention is to bring a buyer through your house to get them to purchase preconstruction down the road, you might find that one sucker is being drug around by the local yahoos...and likes yours best.

Some food for thought... Yes this is true, more traffic the better. Apparently you are not like these guys here. I mean if they have to lie,lie, lie,
and if it means 1 more dollar more to them they are going to switch people.
I guess why I am so angry with them this time, the Broker I listed with was, suppose to be one of my best friends, and I didn't believe that he would do this. That's what I get for assuming!!! :lol:

[mike_mn]

Apparently you are not like these guys here. You mean a jerk? Yes they are everywhere around here too...they feed my life rule that 90% of people basically stink.

I treat my customers fair and let them make their own decisions. I refuse to be a high pressure sales person. This is definatly to my own detriment. Wish I could target the 10% of people that don't stink and market to them...Fortunatly/Unfortunatly they are everywhere and they are nowhere...

[Aldo]

They are the the "thingy"..hahaha.. They expect everyone to :praise: them

Ligroce, you are sadly (or is that happily) mistaken. If you are able to document this unprofessional conduct, you should contact your state's Board of Realtors. Realtors, real estate firms, their agents and their sales people are licensed by your state and are subject to strict legal and ethical requirements. Those licenses can be revoked for unprofessional conduct. If unprofessional conduct is rampant in your area, your situation could be the one that sends a wake up call to the real estate (un?)professionals in your community. It may take a bit of effort (not much) to help not only yourself, but your entire community and, likely, surrounding areas.

[Debbie]

Update....

Our duplex is still up for sale with RE/MAX. So far, lots of interested buyers. Some came back 2 to 3 times. Bottom line, although the potential buyers are satisfied with our price but are waiting to see if SFH prices will come down soon.

Although we are fully occupied (except one that is for sale) and we have not put any "For Rent" anywhere, we have been getting more than 60 calls from potential tenants in the last month.

We'll wait til end of September. If nothing bites, then we'll take it off the market. We will most likely keep the duplex since we'll use it in case our children's college funds exceeds more than we anticipated in year 2020. Ahhh, it's really nice to know that we have done our job securing college funds. :SM144:

Debbie

[Aldo]

You're just trying to make me jealous.

Put my house on the market on 7/31 which resulted in a few weak calls. I then added a $2K bonus to the selling broker which resulted in one showing on 9/11 (no offer) and as of 5 PM today, there hasn't been another call. Whether my broker likes it or not, I may have to throw a tenant in there.

My vacancy rate remains at about 25% with 1 BR units nearly impossible to rent for anyone who doesn't accept dirtballs. The larger units are renting while other teni are moving which helps maintain my vacancy rate.

[InvestorJoe]

Aldo,

That is why I don't buy 1Br units unless they can be cost effectively expanded to 2 or 3 Br.

I have a long time friend who has a bunch of 1 Br units near the Air Force base south of me. She swears by them because of the ready supply of renters from the base. That is until there is talk of closing or shrinking the base, then she gets nervous.

I keep telling her she should sell them now, while the base is active and then reinvest in a better long term option.

[Aldo]

Joe, not so long ago I had a waiting list of qualified applicants for that property. When the rental market went south the list gradually dried up. The rental market has finally begun to improve except for 1 BR units which often lag behind larger units. I expect to have a waiting list again by Spring.