Question: How do you handle a seller who asks you for an offer after asking them; "What's the least amount of money you are willing to take if I offered you cash and closing in 30 days?"
Here's the story on this property:
Dove into bird dogging for the first time yesterday. Found an ugly house in a great location. Seems vacant. Neighboring houses looked good. Lawn's mowed but house looks empty.
3Bd/2Ba. 1150 sqft. .69 acres. Built 1964. Last sold in 1995 for $90K. Low-end ARV and comps are $160K. Large driveway with two carports. Close to Shopping centers, bus routes, restaurants, highways. urban/suburban area in Manchester, CT.
Took down the address. Called the town tax assessors office. Asked the clerk for property owner information. Clerk actually gave me the name and phone number of the owner. Phone number she provided from the water record she looked up. I was shocked she gave me this information. Seems like an invasion of privacy that this information is publically available. I'm happy about it though : ). Owner seems to be another investor based on the tax record name. Property is owned by "Robert Henry, LLC". Called the owner. Was nervous before and during call. Spoke kindly to the owner called "Henry". Explained my reason for calling:
"Hi, my name is Pedro T, I'm a local real estate investor. I drove by the property on X street. Would you be interested in selling it?" Henry just replies, "Depends on the offer. The property needs work." I said, "I understand. That's okay. How much work does it need?" Henry responds, "Well, some folks might just paint it. Other folks might replace the carpets, It depends on folks." I then asked, "What would be the least amount of money you would take if I offered you cash and closing in 30 days?" To which he responds, "What is your offer?" At this point I'm feeling a bit frustrated because I can't get the guy to open up. He doesn't give me a number he'd be willing to sell at. His answers are brief - doesn't seem to be a talker but there is a hint of interest in his tone. I can't get a number out of this guy. So I kindly explain, "Well, it's hard to make an offer without looking at the inside to get an idea for how much work needs doing." Henry says, "I'll be at the property tomorrow. You want to take a look?"
Speeding the story up from here: I made an appointment to see the inside of the place today at 1PM EST time. I asked if he'd be okay with me taking pictures to show contractors. He said fine. I walked the property this morning. He doesn't live there. He's a local out-of-towner. There is a new furnace in there, but it's not hooked up according to him. It doesn't seem to be livable at this time. From the outside the house needs new siding and I'd put new windows in. I'm not a handy man nor do I know repair costs, but I wonder if $30k would be enough to repaint the inside walls, carpet, furnace installtion and siding?
I've got one guy on my buyers list, but I know how to get more fast and easy. I'm not worried about that.
Not sure this place is a deal. Regardlness, however; I'll say this for sure: So far I've had a blast. I can see myself doing this for life whereas I cannot see myself working corporate america for life. Deal or no deal this is fun, challenging, and an entertaingly learning experience.
The main question I'm looking for an answer to is this. (As stated in the openning of this post):
How do I handle a seller who wants an offer after asking them; "What's the least amount of money you are willing to take if I offered you cash and closing in 30 days?"
Thanks for your help, DG fam!