If you are focused on anything that's irrelevant to your deal--including the possible profitability of a buyer in the future, what color they want to paint the inside, the fact that they hate the way you re-did your kitchen--then it really is too bad you don't have a broker, because to sell property as an owner (and I've done it), above all, the owner/seller has to be pure business and focused on the task at hand.
Readers who follow my posts know I am not one of these people who pushes agents/brokers at every opportunity--absolutely not. But here you are, selling your own place, and you're posting anonymously on Trulia to ask what to do when someone makes you an offer?? Of course it's your decision, it is your property. But you sound like the kind of person who risks gets taken advantage of, or not selling at the highest possible price, which could mean less money in your pocket than if you had had a broker working for you.
Karla Harby VP
First of all I'm curious if you are working with an agent or are trying to sell on your own? I'm guessing it's the latter. Regardless you need to understand that you will probably never get an offer for your asking price and should have absolutely no expectation that you will.
You can counter the buyers offer by responding and letting them know what price you would accept. Bear in mind they may simply walk away or they may counter with a new number.
Who cares if they plan on flipping the house. Sellers should only have one concern about who is buying the house and it's whether they can in fact close per the contract. Who they are, and what their plans are are frankly not pertinent.
The advantage of a cash offer is twofold. You do not have to worry about whether the property will appraise or if they can get a loan, and they can close quickly if they and you wish.
Good Luck, I hope you make your deal.
Could be several reasons, I would just ask " are you gonna live in this home"? or something that will stir a conversations...
You may be able to get the buyer up depending on what homes are selling for on the high end of the market. Remember, it's all about howm much money an investor can make. I hope this answer can help you.
You can always make a counter offer and the buyer can either accept or make another counter.
Most offers are below the asking price so this is not unusual.
A flipper or investor will generally have a lower ceiling than your standard buyer. If they are experienced they have accurately estimated the repair/fix-up costs calculated at a contractor's level not the average retail cost for repairs. They also have a very good idea of the selling price of the upgraded property.
We have a TLC/Handyman Special in Marine Park that is in contract with an investor/flipper. The location was great but the condition (required kitchens, baths, floors etc. plus a bad mold problem) was a big issue from a retail repair perspective (approx. 75 to 100k) plus we had advised the seller of the risk of lenders refusing to lend due to the poor condition of the home. We advised the seller to accept an all cash offer that was slightly lower than the offer requiring financing. We were even able to negotiate additional moneys that narrowed the gap between the all cash and financing offers to an amount that was acceptable to the seller.
The responses mau be different if the community knew the condition of the property you are selling.
Best of luck...
Bonnie Chernin and David Rogoff
Fillmore Real Estate Branch #19
2926 Avenue J
Brooklyn NY 11210
917-593-4068 (David’s Cell)
646-318-5031 (Bonnie’s Cell)
Keep in mind that the longer a property sits on the market, the more that the potential buyers will think that property isn't worth that list price.
It sounds like that you are not represented with a listing agent. Believe me, having a real estate professional working for you on this transaction to ensure the right price would have been money well-spent.
At this point, you can counter the cash offer with a price that you can live with. But, be prepared for this Buyer to walk if the price is much higher than he wants to pay.
All the best!
Dianne Y. Ayala Steffey, MBA, CLU, ChFC, NMLS #267658
Sterling Mortgage Services NMLS #373771
2929 Mossrock, Ste 222
San Antonio, TX 78230
210.831.8749 cell http://www.sterlingloans.biz
Just because a person is buying a house all cash does not mean they will be flipping the house. If that is something that you are concerned about you should just ask the buyer. Often times when an investor purchases a home with the intention of flipping the property they will want to place a clause in the sales contract adding the verbiage "contract vendee." Having this clause in the contract will allow the investor to sell the contract itself to another purchaser and make themselves money without having to actually close. If the buyer wants this clause in the contract they definitely have intentions of flipping the property.
On a side note, you need to make sure the deal is actually all cash. You need to see proof of funds. Often times a buyer may state they are purchasing all cash but really they are going for a mortgage. The difference is that normally when a buyer gets a mortgage there would be a mortgage contingency in the contract stating that if the buyer gets denied the mortgage, the deal would falter and the buyer would get their down payment back. If a buyer seeking a mortgage goes into contract WITHOUT an actual mortgage contingency, it means that if they get denied the mortgage the deal would falter and they would also LOSE their down payment. Professional investors may be willing to take that risk because they feel certain that they can get the mortgage, but you need to be careful because if the buyer is getting a mortgage, whether or not they have the contingency they would still need to actually get the mortgage in order to close.
Having said that, whether or not a buyer wants to flip your property is not important in and of itself. The more important factor is "am I getting enough money for my property?" The best way to make sure you get the highest price possible would be to have your home professionally marketed by a licensed real estate agent and/or realtor. Only a real estate agent can give you the highest level of exposure and it is a statistically proven fact that homes sold by real estate agents go for higher prices. Plus you would have someone guiding you through the process step by step and taking care of everything along the way. Even if you do not want to hire a real estate agent, you should at least have a couple of agents come by your home to give you a Comparative Market Analysis. That is when the agents provides you with some comparable sale information (similar homes sold in your area) and offers you an opinion of how much your homes is worth. If you do that you can avoid making a big mistake! If you like I could provide you with that service free of charge and with no obligation. My office is located in your area and I have been in the business for 18 years.
Aside from that, if you want to get the buyer to offer a higher price, just tell them you want more and give them a counter offer. But be prepared, you also run the risk of losing the buyer! If I can be of further assistance please let me know. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
This is pretty typical for cash offers, they think that because they can close quickly and there are no lender headaches they can offer less than others....and that's all true. But that being said, if you have solid comps to back you up, and the willingness to let them walk away, counter them reasonably and let your agent do their job. Sometimes it's just to see what they can get, and if they love the home....even if it is an investment...they might come up.
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
Have you or your agent (I hope you are working with one) looked at the comps in the area.
Also, does your home need any repairs or updating? If the buyer has to put alot of money into it that could be the reason the offer is low. We really don't have enough information here to give you a good answer.
Pam Bava, Realtor
We would be happy to assist you with the sale of your property.
Do not hesitate to contact us.
Michael J. Dvorkin
Brian D. Mukerjee
Licensed Real Estate Salespersons
Charles Rutenberg, LLC
In real estate the best thank you is a referral.
Some Buyers think that, because they have Cash, they are entitled to a big discount. That depends on how much of a hurry you are in. "ALL CASH" offers don't make any difference except that you can sometimes close faster because there is no lender underwriting or appraisal process to go through. Other than that, when you leave the closing table, the money isn't labeled any differently. It's all cash to you.
So, if you're not in that much of a hurry, thank them for the offer, explain the market value of the home with real comparables, and invite them to offer you market price. Many times, a lowball offer is just an opening gambit - no one wants to pay too much. If your agent is a skilled negotiator, often that low offer can be turned into a good deal for BOTH Buyer and Seller.
Doc Stephens, REALTOR
An all cash offer is usually strong for that means the buyer does not need a mortgage. In this market sales do not often close because of bank issues whether it be appraisal or buyer credit. If your home is not listed with a realtor please feel free to reach out to me as more often than not we have a quite an array of buyers and tools at our disposal. Best of luck!