View Full Version : Making an offer on a house
Is there a template or anything one should go by when making an offer? I plan to make an offer contigent on obtaining financing and the house passing inspection. I think I will also make my offer include the seller paying closing costs. I want to make a low ball offer on a house I can fix up and live in for two years then flip it for a profit.
Is there a template or anything one should go by when making an offer? I plan to make an offer contigent on obtaining financing and the house passing inspection. I think I will also make my offer include the seller paying closing costs. I want to make a low ball offer on a house I can fix up and live in for two years then flip it for a profit.
A year ago I would have told you you were freaking crazy. Today, however, you may get away with it. The housing inspection thing is a given. Be careful not to piss off the seller with to low of an offer. The first dude did that to me when I was selling and I didn't sell it to him out of spite. Wound up selling my place for $14G higher than that offer. Check to see if other offers are being made on the house. If so, that may change your approach. Best of luck!
The house I am looking at is owned by a bank that got it in foreclosure. I doubt a low ball offer will piss them off. It has been on the market for about a year and needs a lot of repairs.
The house I am looking at is owned by a bank that got it in foreclosure. I doubt a low ball offer will piss them off. It has been on the market for about a year and needs a lot of repairs.
Well, damn, you didn't mention that little fact in your first post. In that case, go with the low ball offer and see if it sticks.
THE GUTTER
10-02-06, 10:35 PM
If there is a realtor you trust, make them your buyer's agent. They have access to unlimited amounts of info. And, it's not like you have to pay them any fee. If this is the house you want, get some help.
Do buyer's agents not bill you for their services?
builder
10-03-06, 09:03 AM
Do buyer's agents not bill you for their services?
The seller pays all agent costs.
THE GUTTER
10-03-06, 09:29 AM
Do buyer's agents not bill you for their services?
If they try you have gone to the wrong agent. Commission is always paid by the seller and the buyer's agent gets a cut. If there are ANY cost to you walk out and go somewhere else. I would use one if you know the house you want and seek some counseling. Otherwise, if you're just shopping around they have a contract with you and will be involved in any transaction you are interested in. Even a FISBO. Still, no cost to you but it may ward off other sellers from dealing with them.
Thanks for the advice guys. I contacted an agent I have dealt with before and he is going to act as my buyers agent.
Freakshow
10-03-06, 11:40 AM
You are crazy not to use a realtor. AND...bank owned foreclosure are usually stingy with paying closing costs or dropping the price. They are also, in most cases, AS IS. Make DAMN sure you can get a loan on it.
Ask yourself this...could you live there the day of closing? If not, getting a loan will be a bitch.
My offer will be contingent on my obtaining financing. The guy I called to act as my agent called for me and was told that the house sold yesterday. He suggested that I call back in a couple days and ask if it had sold because the selling agent may not want to split the commission with a buyer's agent and therefore may have lied about it being sold. I work near the county's register of deeds office so I went by and checked at lunch and there had been nothing recorded for a sale on the property. I think I will wait a couple of days and check again to make sure it is not a lag issue.
THE GUTTER
10-03-06, 01:50 PM
My offer will be contingent on my obtaining financing. The guy I called to act as my agent called for me and was told that the house sold yesterday. He suggested that I call back in a couple days and ask if it had sold because the selling agent may not want to split the commission with a buyer's agent and therefore may have lied about it being sold. I work near the county's register of deeds office so I went by and checked at lunch and there had been nothing recorded for a sale on the property. I think I will wait a couple of days and check again to make sure it is not a lag issue.
That's what I was talking about. If he did lie he breached his listing agreement. You should call and use a fake voice. Like be Bill Cosby. that would rock.
THE GUTTER
10-03-06, 01:51 PM
Oh yeah, you can still make an offer. The listing agent is required to present all offers to the seller, regardless of amount.
I will find out a couple of days. If it really sold yesterday it should be recorded. I think Lawyers only have a day or so to get that done.
THE GUTTER
10-03-06, 03:17 PM
did he say sold, closed, or under contract?
I did not talk to him, my "buyers agent" did. The agent told me that the house was sold yesterday, according to the listing agent.
Freakshow
10-03-06, 03:52 PM
If it's SOLD...that probably means it went under contract...nothing would be recorded until after closing...when it's REALLY sold.
What I meant by getting financing...and of course everything is contingent upon that...
I've seen quite a few people get pre-approved (by me or another lender) and go house hunting. They find a foreclosure, show them the pre-approval, make an offer and have it accepted. Problem is, the foreclosure is "as is." It may have no light fixtures, holes in the walls, NO appliances, NO TOILETS (this really happened), etc...The loan would be turned down based on the property. Then they have to fight to get their earnest money back. Sometimes they can escrow funds aside for closing to make the repairs immediately.
Basically, be careful with a foreclosure that needs work!
Why would the property condition matter if you buy well below its value?
Freakshow
10-03-06, 05:13 PM
Even if an appraisal comes back at $500,000 and you buy it at $100,000...the lender says the home is worth $100,000. It is worth what it was sold for. On paper the home may appear to be worth a bunch, but a house is really only worth what it can sell for.
The lender is looking at it as something that can be sold if YOU don't make payments.
I had a deal go haywire (we fixed it...but it was tough). The only way you could get to the bathroom (the only one) was by going through the kitchen AND bedroom. That didn't meet FNMA requirements. The lender didn't want to be stuck with the loan forever...so they nixed it.
I gotcha. I think the house could be lived in as is but it would not be pleasant. It has no AC, shag carpet from the 70s, cheesy wood paneling, all the appliances are ancient. None of it would keep you from living in it. The only issue that approaches that level is that the septic tank needs to be repaired or replaced. It has a large backyard so it should be no problem putting in a replacement.
Freakshow
10-04-06, 09:42 AM
The AC may get ya. Is the house in the mountains? Not a big deal. If it's in Charlotte...you may be hosed. Some lenders will let you escrow for it...some won't even take the property. The paneling, shag, etc...those are cosmetic and won't matter.
I called and they told me that an offer had been accepted. I gave him my name and number and asked him to call me if that offer fell through.
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