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I’ve been looking on CL and the FSBO websites for vacant properties and there seems to be a bunch of nicely fixed up ones for sale. I’m guessing when they are in good shape like that, the owner isn’t ready to knock their price way down to wholesale levels. They would probably be interested in a HBS though.
My question is what to say when sending out an email to their listing? Do you do the standard “I would like to buy your house” to get the ball rolling, or do you say I have this great way to sell your house quickly (or something like that)? Thanks in advance for any help.
I would go through the complete process of gathering information on the house just as if you were going to buy. If you do not have a form you can find one in the file vault. It is titled FSBO Worksheet. The more time you get the seller vested in the deal the better your chances of getting an acceptance. If you are new to this the more phone time you get in the better you will become.
Don Wede
I just had one of my bird dogs bring me a property that sounds pretty good. It is a house in a desirable area of Minneapolis with a basement apartment. The owner is a single lady who found out she was pregnant about a month ago. She thinks the house is too big for just her and would love to move into a townhouse where she doesn’t need to do anything.
She has talked to some realtors who told her they could sell her house from $250K-$280K. This seems like a REAL stretch to me – especially since the house does not have a garage and the kitchen needs updating she said.
Here’s the thing – she only owes $75K on it. She bought it in 2011 for $115K. She has put some money into it with new windows, new siding, and about $12K in regrading of the lawn to flow water away from the house. I don’t think I can negotiate her down to those levels because of what those realtors told her. But she would love to sell the house ‘as-is’ and not have to put more money and time in it. I talked to her about a HBS and she seemed interested. She did not want to list it for a long time.
I would think a HBS would be really good for this. But I also think if I can find her a townhouse to buy and move into, she would be more flexible on the price.
Any thoughts on how I should approach this? I think the value might be in the $200K range maybe.
I just finished reading Jackie’s HBS book (and lovin’ it!) and saw that houses generally sell for about 80-90% of retail. Is that still true? It seems like houses are selling quickly around here. I get calls from realtors about my rental properties because inventory is low.
I think I would be looking for a townhouse that could be bought on terms. I would use the line “you don’t want to sell yours until you have a place to move into”. Explain a Realtor will tie your house up with a listing for 6 months. Give me 45 days to find you a townhouse and do a HBS on yours. Of course get your option in place. Go out and find a townhouse that could be bought for terms. Do a HBS for down payment if the underlying has appropriate terms you can wrap that. If not you can create a note, and sell the note and pay off the 1st.
I think first you need to find out the real market value of the home. If necessary check with an appraiser to pay a $100.00 for a drive by, or talk to some other Realtors to get a better idea of value.
Don Wede
Thanks Don. Some great ideas. She is not open to terms – just wants to sell the place (although I have not sat down in person to discuss it with her). But I like the idea of finding her a townhouse – especially on terms. Will give it a try. I have a realtor friend that will be pulling comps for me tonight.
Thanks again.
Often with a HBS, houses sell at market or even a little more. It just depends on the house, the economy, the local market conditions, the neighborhood AND most importantly how much marketing you do to get a lot of people to the 2 day open house. The more people you have at the open house, the higher the bids will go.
see this old article
500 buyers at your open house in two days
That?s how many buyers showed up at the Highest Bidder Sale I did in Loveland Colorado last month.
I usually attract at least 200 Buyer to each Highest Bidder Sale.
This weekend, CashFlowDepot member JB Banning will be doing a Highest Bidder Sale at a house in Nuevo California.My guess is he will break the 200 buyer mark the first day.
You can check out the property at http://www.HighestBidderSale.com
If you?re in the area, you might want to go help JB with his sale so you can learn how to do them too or this may even be a property you?d be interested in for yourself.Here are some other advantages of doing a Highest Bidder Sale:
(1) The great thing about a Highest Bidder Sale is it has a built in back up buyer just in case the high bidder backs out.
(2) But think about this?You also build a HUGE buyers list in just 2 days. Many buyers at a Highest Bidder Sale are CASH buyers so you can get your houses sold and CLOSED even faster.
(3) With all those CASH Buyers, you get to meet a lot of potential ?private lenders? in just 2 days
(4) And I have never done a Highest Bidder Sale that I did not generate interest from other Sellers who want me to do a Highest Bidder Sale for their house.
I usually get at least 1-2 options every time I do Highest Bidder Sale. More deals! More profits!Bottom line, a Highest Bidder Sale is a great way to get your house sold fast, build a buyers list, find private lenders, and get even more deals all in just TWO days!
Join the discussion in the FORUM at http://www.CashFlowDepot.com about doing a Highest Bidder Sale in your area.
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