House #7: First Offer

March 12, 2009 · 0 comments

We received our first offer on The Roach Duplex today…and rejected it…

We listed the property on the MLS last week, and in that time have gotten quite a few calls. Many — I believe — are from potential owner-occupants who are scared off when they see the condition of the property (it needs about $20K in rehab work), and the serious investors likely saw it when it was listed on the MLS previously at a lower price (before I bought it).

The offer we received was for just $500 more than I paid for it, 25% down payment, with owner financing for 5 years. The entire contract didn’t come through on the fax, so I never saw the owner financing terms requested, but just seeing the offer price was enough to convince me to reject the offer outright. I know the potential buyer knows what I paid for the property (especially if he’s working with an agent), so it’s even more insulting that his offer was only $500 more than that.

Anyway, my agent (my wife) called the buyer’s agent and let her know that while we very much appreciated the offer, it wasn’t even high enough to open negotiations. Further, she let them know that if they’d like to submit a new — more reasonable — offer, we’d love to get it.

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