found a scoop - but the cart is before the horse

[slackadave]

Hey all, hi from Napier.

Got a property in a hot area that is selling under value by 50K or so and as a bonus is subdividable. Its been on the market for a whole one day and has two offers on it already. An old lady owns it and has been in it 50 years or so, wanting to move in with the daughter. She probably thinks she is ripping the buyers of cause she bought it in 1957 for 2 grand or something.

Now i know there must be a way to do something with this - I would have to organise bridging finance because i am currently selling my house, but that takes time. Considering the offers on the table and the urgency of the decision is it possible to Option it or something? Then find a buyer myself?

There has to be a way to capitalize on this? Has someone been in this situation? Dean, i'm coming to your seminar in wellington (can't wait btw), do you have any ideas?

Cheers,
Slack

[xris]

Hey slack,

Here's a couple of ideas.

1/ Offer the old dear $3,000 and she'll probably tell you not to be so foolish before saying you can have it for $2,500. You have to be quick with geriatrics like this before some well meaning joker comes along and puts all sorts of silly ideas in their heads about market value. And if you dilly-dally too long she might even keel over and then you're stuck having to deal with her estate - all those lawyers and long forgotten cousins - avoid that like the plague.

2/ No money? Oh well, try a lease option approach. Explain to her that it will be a win-win situation for both of you. Failing that try a lengthy deferred settlement with vendor finance at 10.00%, and a prior access clause - to get all your tradesmen through. (If she queries this just explain that she can lock herself up in her bedroom while your guys strip and re-paper her entire house, rip up and chuck her carpets, gut her bathroom and kitchen, and drive a bobcat across her rose garden. And don't forget - keep reminding her that this is a win-win situation.)

Alternatively you could offer market on her preferred terms with a deposit cheque attached, and see what happens. But that would be too simple, wouldn't it? Perhaps you should just attend Dean's seminar to find out what you really need to do.

xris

[SuperDad]

Got a property in a hot area that is selling under value by 50K or so and as a bonus is subdividable. Its been on the market for a whole one day and has two offers on it already. An old lady owns it and has been in it 50 years or so, wanting to move in with the daughter. She probably thinks she is ripping the buyers of cause she bought it in 1957 for 2 grand or something.

slacka,

xris suggests that you do Dean's course to find out what to do in this case.

No need. I know what Dean would do in this situation, because he has done it before. He would NOT be lining up with the other vultures to feed. He WOULD tell the little old lady what the likely market value of her property is. Maybe she already knows this, and wants a quick sale. More likely, she has no idea.

Paul.

[slackadave]

You guys are quick - impressive

Sweet - Yeah only problem with that theory is it's listed with an agent and already has one offer on it as of 2hours ago. So even if i was sneaky and had a 'chat' to the vendor - hasn't she signed her life away with the agent?

Lease option is good, but would she choose this over with a cash offer? Whats in it for her? Haha cracked up at the bobcat in the roses, cause i own a bobcat and that's exactly what i'd do

[Josko]

You're too late with this one slackdave, unless you have a cash offer, let it go mate, there will be more deals out there, just get your self into a position where you can be the one making the offers.

[HermanZ]

Xris
Not often that your posts make me larf.
but that one did, thanks

HermanZ

[slackadave]

good call - thanks for the info everyone!

p.s who is going to the Wellington Seminar of Dean's?

[payjisan]

Dont give up until uve at least tried....

If u r sure this is a good solid house with healthy margin then in this case i would consider...

Offer unconditional at 2 or 3k above the asking price with settlement 4 weeks after whenever the date she moves out to give her as much time as she needs. She may appreciate this. U then have 4 weeks to onsell at a good discount and still make a bit of money. I would also do as xris suggets and attach a cheque for deposit with ur offer. 5k should be sweet enough and i doubt she would have many if any other offers like urs so u have a good chance of standing out from the crowd.

Of course all depends on ur level of risk etc. but if there is a real 50k margin there then how hard will it be for you to get at least 20k?

[revdev]

uve, u r, U, ur, urs, u, ur

I must be getting old...txting language bugs the sh#t out of me when I'm trying to read a post!

G

[payjisan]

I must be getting old
G

quite clearly yes!

In my defense, it was late and I find that 'you' 'your' 'you're' is much easier to type fun-etik-li...

I'm not that young though, and there is much worse out there! It's when you see this sort of thing on someone's CV or business email - now that is just stoopid!

[keleri]

If she has listed with an agent then it probably is Sole Agency and therefore all offers are to go to the agent.. Selling privately would still mean she pays the commission. Check it out before you do anything.