Listing Price: $89,000
Sale Price: $47,000
What are a few things that scare most investors, termites, well and septic issues, water damage, foundation problems, poor drainage? This house had everything and out offer reflected the work that would be required. This house will take $80-100,000 in repairs. Our original offer was $44,000 and it was rejected.
The house went under contract with another buyer and fell through after inspection. We made another offer – same price – $44,000. Our offer was again rejected and the house went back on the market.
It went under contract again and fell through after inspection.We made another offer – same price – $44,000. It was a cash offer with no inspection contingency. That was done before the first offer. Unfortunately, our offer was again rejected and the house re-listed on MLS.
Another buyer made an offer and the house went under contract. Again, it fell through.
This time, we got a call from the listing agent, “What will you really pay for the house?”
You should be able to guess my answer, “Forty-four thousand dollars.” Then I said, “I’ll write an earnest money check for the full amount and I can close tomorrow.” Of course, no attorney could close that quickly but it sounds good to let the seller know you’re serious and ready to move fast.
A few hours later, the agent called to say they would take $47,000 and we signed a contract.
Could we have gotten the house for less? Maybe. Could the seller have gotten a higher price? Maybe. However, this was a price that worked well for everyone involved and left plenty of money to be made on the sale.
The point is this, never let the list price scare you away from a house. The list price isn’t what you’re going to pay. Never be afraid to make an offer, if the numbers work. The worst that can happen is the seller says nothing or declines the offer.
At We Buy Houses, the only ridiculous offer is the one that’s never made. Our discount was $32,000… only because we asked.
Never make an offer based on the listing price. Only make an offer based on the numbers; cost to rehab and After Repaired Value (ARV), and never think your offer is too low. It’s not. I promise.
Greg J. Gardner
We Buy Houses. ME