Home Selling in 32765>Question Details

Krishna, Both Buyer and Seller in Oviedo, FL

An investor is offering to buy my house for more than what you would expect from an investor? Could it be a?

Asked by Krishna, Oviedo, FL Wed Nov 21, 2007

scam? He is offering to pay for the house around 8% less than the listing price..

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Answers

11
Not all all or maybe so,

Agreeing with Gary, he could be potentially looking to purchase a property to build to his portfolio. Maybe a new investor, potentially a highly skilled investor. It could be that he owns numerous properties immediately surrounding your apartment and would like to purchase this apartment so he does not have to commute to and fro from one property to the next. It would make more sense to purchase around a certain area, than to purchase a property outside his scope. It would be within his circumference of investments. Also, he could be seeing something that you do not. Is you property prices accordingly and priced at the current market value? He might be looking to eliminate any negotiations and present this offer as a best of final offer. This will eliminate time and stress and would be a rather quickly close. I would consult with your attorney and discuss into detail your concerns.
2 votes Thank Flag Link Mon Jul 21, 2008
Why worry about it. If the investor is paying the price you desire and you are not holding any paper(Mortgage) take your money and run. Some predict things won't get better for several years. If you have a GOOD BUYER NOW, act and do not second guess yourself.
All the Best,
James Joseph
1 vote Thank Flag Link Mon Jul 21, 2008
An 8% discount on a house can be very profitable for a "buy and hold" investor. Most genuine investors are actually buy and hold investors. Serious profits are made by buying well, holding for a long enough period to gain from appreciation and finally selling or / and exchanging.

If this is a "buy and hold" investor he could be for real.
1 vote Thank Flag Link Mon Nov 26, 2007
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
Contact
Paula,

Why would an Attorney help? They only offer opinions!

The best thing to do has already been discussed. Look at recent closings and base your sales price around that. Also, in this flat market be careful of having too high an expectation. Weekend news showed that new homes are commanding less than older homes ( per sq ft) as builders unload.

I don't know your personal situation Krishna but email me the details and I'll look into this for you.

At the end of the day we want a win-win sale.
1 vote Thank Flag Link Mon Nov 26, 2007
I agree with Rick and Ines that an investor can recognize a good deal and not low ball. There are investors who want steals and others who just want a good deal. One thing you might want to think about. Is there a possibility that this investor could know information about the area which could increase the value of your home that you may not be aware of. Contact a trusted agent in your area and do some digging to make sure that this investor is being upfront.
1 vote Thank Flag Link Wed Nov 21, 2007
Krishna,
Regardless of who the purchaser is, ( Investor or otherwise) if you are getting a price for your home that is in line with what other homes are selling for in the your area ( and your are satisfied with that offer) I would think you should consider the offer.
Timing is everything!
Good luck rick.
0 votes Thank Flag Link Tue Jul 22, 2008
I think Ian may be the "investor"

No-no...please don't get an attorney...

Actually, it could be an inexperienced investor, or a fair investor (Rick and Ines scenario), a scammer, or someone who knows something that you don't. (Does a thick black liquid bubble from the ground when you dig?)

Call an Attorney, in Florida I would recommend Hank Sorensen http://(www.HankSorensen.com) for all Real Estate contracting and have him review it. (unless Ian is an attorney, which I am thinking ...errr...Not so much)

Best of luck!!!

Gary@BayVistaRealty.com

Gary De Pury
Broker-Owner
Bay Vista Realty & Investments, Inc.
Chairman, communications committee
Greater Tampa Association of REALTORS®
Director, Florida Association of REALTORS®
0 votes Thank Flag Link Mon Jul 21, 2008
The saying goes that if something looks too good to be true.. it usually is! You haven't said if you are selling your home through a professional realtor or on your own. Statistics show that generally a FSBO (For Sale By Owner) sells for somewhere between 15-20% less than what a realtor could get for it. If you are being represented by a realtor then I strongly recommend that you be asking that person this question since they have all the information specific to your property that I do not. If you are selling your property on your own, I would have to ask how you determined your sales price? Was it by using one of the internet instant home value services such as zillow.com? Then you may be in trouble! Sites like these are generally not reliable when determining price. I would suggest that you check on recent sales (within the last 6 months or so) for homes similiar in size (+/-10% of the heated square footage) within a one mile radius of your home for comparison prior to agreeing to any offer. And GOOD LUCK!
0 votes Thank Flag Link Fri Nov 23, 2007
Krishna
I don't know your market (disclaimer). However, remember that there is more to an offer than just price.
There are terms: he could ask for help with closing costs. After the physical inspection, wood destroying pest inspection, and other investigations he may come back to negotiate.

Most markets in the US are trending down or flat. If your's is typical, then it is not uncommon to see offers below list price. You don't mention how long your home has been on the market.
My research consistently shows that homes sell for closest to list price in the first 30 days on the market. Homes that sit on the market can expect to receive lower offers because everyone thinks "what's wrong with that listing...it's over priced"
0 votes Thank Flag Link Wed Nov 21, 2007
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Krishna,
Do you have an agent to help advise you? If not, get a real estate attorney. You need someone on your side to advise you of your best interest.

We appreciate your post, it started with another but spun off to this one. I can only say we need more info and if you have an agent or an attorney, then take their advise.

Investors do not usually offer you more money for your house than it is worth, so something is not right.
0 votes Thank Flag Link Wed Nov 21, 2007
Krishna - there are plenty of investors out there that recognize a good deal and feel no need to to low ball you. There are many things to watch out for like financing, separate addendums, assignable contracts....etc.
We have written about a couple of different scenarios that may help you out on our blogsite - take a look at them and I hope it helps.

It's not always bad - but it helps to have someone knowledgeable by your side.
0 votes Thank Flag Link Wed Nov 21, 2007
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