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October 5, 2007 at 3:05 pm #4039
When making offers and the seller asks you what a full priced offer means, what do you tell them?October 5, 2007 at 5:55 pm #23224
alan dale grossMember
It means different things to different people.
The Fair Market Value, as determined by Comparibles is One.
The Seller’s Asking Price, regardless of the Comps, is another = to not waste any time negotiating about the price and move on, knowing that appreciation should take care of any differences OR knowing that the Price you are giving is: TO BE CONFIRMED, whereas, if it is Way Out of Line; You Can Ask for an Adjustment, if you want.
Why wouldn’t you want to ? If, an RB is Good with it, so be it.
A third would be to Offer the Seller’s Asking Price PLUS $5,000, for example.
Why ? They recieve your Offer/ They READ IT / They GET BACK WITH YOU ! ( More Often. And, you’re in the Game and Have a Chance to Pitch your Benefits.)
A Fourth Goes in the Other Direction, with the Asking Price and Yet IS STILL “FAIR” Market Value = In the Real World What They Could Hope to Recieve, from a Buyer, in the Market and, in Reality, IS STILL A FULL PRICE OFFER !!!! ( vs. a “Full Price Offer” being “What they are ASKING, which is “What they HOPE to GET” or more like “Asking HIGH, because THEY KNOW they are going to be TALKED DOWN, by ANYONE.”)
The addition or subtraction, on the Forth Kind of Offer, can include you taking out your Marketing, Repair, Profit expences, etc., from the MAV, also, and they ether like it or not.
Fifth, and I’m kidding, but I bet some of these Pros aren’t: Charge them $2,500 Consulting, even if they don’t like it.
Actually, “Consulting” CAN be a part of your Profit Expences.
O.K., Sixth. The Market is in a Slump. You see an Asking Price of $250,000 and you write $200,000, as the MAV on your NEO, just because you think that in 2 years it will be worth 20% less than it is now, or whatever. ( and subtract “expences”, from that, too, possibly)
Again, by “Full” or “Fair”, all one through six, above, are “Full” AND “Fair.”
And there are plenty of variations on them, too.
They just mean different things, to different people.
Seventh: Showing them What they are NOT GOING to GET, from anyone else, ONCE Their HOLDING and EXPENCES and REALTOR, etc., etc. are included verses Whatever Your “FULL & FAIR MARKET VALUE” is to them as the MAV, RIGHT NOW with INK on PAPER, is what Works, regardless of the numbers or the market.October 5, 2007 at 6:18 pm #23225
In my area Full Price is the current FMV minus a little bit. My Realtor has provided me with documentation that proves that over 80% of the sold listings in the area didn’t sell until at least a 10% price reduction was made and, in a lot of cases, a 15%+ reduction but that has a lot to do with unrealistic original asking prices.
When I make the offer to the Seller I always make it at his current asking price however, to be verified. One that is under NEO right now I actually offered him more than is asking because after further review he was almost 20% conservative to sell fast and I got my NEO on the first day it was put in the paper (last Sunday). At first he said no, the price looked fantastic for the home so I had Robert (Realtor) pull some comps and sure enough it was a great price so I just came back at him with a higher NEO which he jumped all over.
I can get NEO’s in the $250k+ range here simply by offering slightly higher than they are asking. On forsalebyowner.om, Realtor listings, and other sources you will see those are sitting on the market for over a year and almost all have given huge price reductions from appraisal made in the last year simply because the value isn’t there right now. I am working with a Realtor and Mortgage broker that deal in these homes daily and should hopefully have some put together. (keeps fingers crossed).
But, to make things simple Full Price is whatever the seller is asking and if you find out it is just unrealistic you will need to renegotiate the MAV if possible.October 5, 2007 at 10:26 pm #23226
Thanks again guys. I will look at the answers a little closer this weekend. One thing I need to do is qualify a little better at the beginning.
1. What is their motivation to sell?
2. Will they price their home to sell?
The price will be set according to their motivation.
Do they absolutely have to sell?
What happens if you don’t sell?
I was looking at appendix 4 (the net sheet) in our documents.
I wonder how it would look next to a net sheet from a loan officer for the same house?
I could fill in the sellers portion of the appendix 4 and show it along side a net sheet from a loan officer to show the difference between the two.
Then show the CMA along with the number of houses on the market, how long on the market, how many sold for the month, how many expired, how many are pending and ask them again. When do you have to move? They will then know that price is what is going to make it sell faster. At that point you can add to the net sheet instead of decrease from the selling price.
Does that make sense?
Anyway, have a great weekend.
Here is one to ponder.
Once upon a time there was a non-conforming sparrow who decided not to fly south for the winter. However, soon the weather turned so cold that he reluctantly decided to fly south. In a short time ice began to form on his wings and he fell to Earth in a barnyard, nearly frozen solid. A cow passed by where he had fallen, and crapped on the little sparrow.The sparrow thought it was the end, but the manure warmed him and defrosted his wings!
Warm and happy, able to breath, he started to sing.
Just then a large cat came by, and hearing the chirping he investigated the sounds. The cat cleared away the manure, found the chirping bird, and promptly ate him.
The Moral of the Story:
Everyone who craps on you is not necessarily your enemy
Everyone who gets you out of crap is not necessarily your friend.
And if you’re warm and happy in a pile of crap, you might just want to keep your mouth shut.October 8, 2007 at 5:54 pm #23227
Senior Scott, When making offers and the seller asks you what a full priced offer means, what do you tell them?
Full Price, whatelse?October 8, 2007 at 8:22 pm #23228
1. Will you be willing to stay on your loan for a Full Asking Price Offer, PLUS?
2. What is your Asking Price?
3. Are you willing to take more?
4. What do you owe?
5. What is your monthly payment?
That’s all I need to know to make them an NEO (non-exclusive offer).
I also like their email address, mailing address and phone number, but I don’t need it to make a NEO.
Keep it simple! Make lots of calls! Make lots of NEO offers!October 9, 2007 at 9:17 am #23229October 9, 2007 at 2:16 pm #23230
Well, a full price offer is great as long as you can generate some if not all the profit centers. The monthly commitment should be at least within shouting distance of the rental rate. Failure to do that will mean you will have more trouble finding a resident beneficiary and spend more time making the deal work, when you could be out there making a number of easier transactions.
What you could look at particularly at this time of uncertainty in the property market is buy only houses for the outstanding loan amount. Usually the loans are an few years old and you get great equity build-up even if you are only making a small amount on the monthly income, further it is just a whole lot easier to bump the initial equity numbers.
And of Dave Henderson
Bem, uma oferta do pre??o cheio ?? grande t??o por muito tempo como voc?? pode gerar algum if.not todos os centros de lucro. O compromisso mensal deve estar ao menos dentro da dist??ncia shouting da taxa rental. Falha fazer que significar?? que voc?? ter?? mais problema que encontra um benefici??rio residente e gasta mais tempo que faz o trabalho do neg??cio, quando voc?? poderia ser para fora l?? de fazer um n??mero de transa????es mais f??ceis. O que voc?? poderia olhar particularmente nesta ??poca da incerteza no mercado de propriedade ?? casas da compra somente para a quantidade proeminente do empr??stimo. Geralmente os empr??stimos s??o poucos anos velhos e voc?? come??a o ac??mulo grande da equidade mesmo se voc?? est?? fazendo somente uma quantidade pequena na renda mensal, mais adicional ele ?? justo um lote inteiro mais f??cil de colidir os n??meros iniciais da equidade.October 9, 2007 at 2:23 pm #23231
Thank you for taking the time to think about what I said and pulling the post. Everyone on this board is very helpful and I greatly appreciate all of you.
It is a great read and exactly what I was looking for. All of the players had great answers and showed a hand that can give a person many different options. Good stuff.
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