We Have Buyers

[Smiling JOe]

I guess the title of this thread should read, "Our offer-writers may have buyers." :funn:While many people may not agree with the practice of simultaneous closings, one needs not look further back than 2005 to find plenty of flippers who never had to come to the closing table with any money. As for the sellers in any of these deals which may happen, there are creative ways to keep your property actively listed, if your Realtor is worth his or her salt when it comes to writing contracts. Ask your Realtor about First Right of Refusal. In the end, the goal is bring buyers and sellers together in a transaction.

It is easy enough to write offers like these guys are doing and leaving the sellers in the dark with your intentions, and it can still be legal. At least these guys are offering to disclose fully. Knowing this, the sellers if they work in a first right of refusal to the contract, shouldn't be bothered at all by the extra paperwork, and it could get them out of a pinch in the process if the offer writers do find buyers. scratch:Almost sounds like the "buyers" are trying to get paid for providing real estate services. :funn

All of that said, I think there are very valid points being made by a few folks regarding the sellers of the properties willing to drop the price by 35%, to first, try dropping the price by 25% and expose your listing to more potential real buyers. ;-)

 

[JoshMclean]

It seems the "realtors" on this thread don't like 2bohemians style. I agree that if they don't have a pool of investors that they can turn the property on to, then it is a waste of time. But I happen to think that they aren't interesting in wasting there own time either. Yes, it's not a very risky approach but I have to believe that they plan on beating the bushes to find buyers.

I am in the process of selling some property and I have been unimpressed with the current order takers, I mean, realtors, in this area. I don't see any of them trying to create demand. Most just wait for the phone to ring and then complain about the market.

I don't think any of the people speaking against it are even Realtors. You need to do a good job of screening your Realtors if you are expecting a great service. Much like all businesses, some work harder than others. Just my 2 cents on that.

 

[Joe Mammy]

It seems the "realtors" on this thread don't like 2bohemians style.

I am a REALTOR? and joined this forum today to toss in my nickel. You may recognize my moniker from a similar forum on an international traveler site.

<disclosure>I work for the same broker as the 2 Bohemians</disclosure>

Even though we have the same broker we are still basically competitors, albeit neighborly. I have no problem with the "2bohemians style" and wish them success. With full disclosure how can there be a scam?

The facts speak for themselves. Incredible appreciation from 2001-2004 could not possibly continue at the 100%+ pace. Everyone wanted a piece of the equity pie and for-sale signs popped up like mushrooms after a rainy night.

Increased inventory/increased property taxes/increased insurance = less demand. A correction was and is inevitable - feel it? Of course you do. The flip is now the flop. Lots? Dirt is dead.

Nobody can predict where the bottom is exactly. But there are indicators to guide us and give us educated direction. Simply enough - look at recent sales. Not appraisals- if you want an accurate appraisal - get one today - but you better be prepared to market because tomorrow that appraisal is obsolete!

One thing for sure- it was a very nice day today!

 

[lindatat]

I am a REALTOR? and joined this forum today to toss in my nickel. You may recognize my moniker from a similar forum on an international traveler site.

One thing for sure- it was a very nice day today!

Joemammy - it's about time you joined in on the funn at Sowal.com. Drop in the lounge sometime. Sometimes it gets way too serious here in the real estate forum!

 

[goofer]

SJ

If I am correctly interpreting your suggestion of a right of first refusal, isn't that the same thing of writing a check to the investment group buyer if they do find someone to flip to? Would that second buyer be obligated to buy the property from the original seller? What does the seller accomplish? Isn't it needlessly complicating an already unusual situation?
I agree with you that the seller should just slash the price by 25% and then see if he catches a buyer. Using a right of first refusal just seems to complicate matters.

 

[GoodWitch58]

Frankly, I haven't seen that many people that desperate to sell. My sellers are not taking low offers.....if we had that many desperate sellers, I think some of this inventory would have moved by now

 

[Smiling JOe]

SJ

If I am correctly interpreting your suggestion of a right of first refusal, isn't that the same thing of writing a check to the investment group buyer if they do find someone to flip to? Would that second buyer be obligated to buy the property from the original seller? What does the seller accomplish? Isn't it needlessly complicating an already unusual situation?
I agree with you that the seller should just slash the price by 25% and then see if he catches a buyer. Using a right of first refusal just seems to complicate matters.

Your statement about writing a check to the investment group if they bring a buyer is what I was refering to when I stated that it is almost like they are trying to practice the sale of real estate without a license. ;-) As for the your second question, it all depends on the wording of the assignment. There is an addendum for Assignment of Contract which gives the obligation to either the Assignee or the Assignor, depending upon which box is checked.

What does the First Right of Refusal Accomplish for the Seller? Once a listed property is under contract, it is required to be entered into the MLS system as pending or contingent, unless there is a First Right of Refusal. Once a property is entered into the MLS as pending or contingent, all of the data bases to which our MLS uploads information, removes the listing. If a property has a contract with first right of refusal contingency, the listing agent is allowed to keep the listing active, so that it remains in all of the data bases under which people search for property. (The listing agent has to note the contingency in the Agent notes of the listing) So, if another buyer comes along prior to the potential closing, the existing flipper (buyer) would have a certain period of time, established in the contract, in which to remove all contingencies, or the contract will be cancelled. It basically leaves the advantage in the sellers' court if a real buyer comes along.

Again, the property would have more interested buyers if the sellers simply reduced the price of the listing, and it might even create a little scramble if it the price is exciting enough.

 

[Mango]

I think when he talked of demand he meant creating activity. I have never twisted an arm. I have cut off a foot!

Bobby, your tar, now I can't get that Baywatch song out of my head.

 

[goofer]

SJ

Thanks for the schoolin !!

 

[Bobby J]

Bobby, your tar, now I can't get that Baywatch song out of my head.

What song does SJ's tar remind you of....