I only buy bank-owned foreclosures, and as such, I buy all my properties right off the MLS. But, many (probably most) investors look to take advantage of all the sellers in this market who are desperate to get rid of their homes, either because of a difficult financial situation or a life change (divorce, new job, death in the family, etc). While I don’t spend a lot of time on this blog talking about how to deal face-to-face with desperate home sellers, it’s obviously a very important topic to many investors.
Today, I wanted to provide an article on the topic of negotiating with private home sellers who may be desperate to get rid of their property, and therefore might be ready to provide you with a fantastic deal!
The article was written by guest author Scott Costello. Scott currently runs Struggling Investor.com, where — between his blog, his articles and other great material — he is giving away a tremendous amount of information that up-and-coming investors should greatly appreciate. Scott previously wrote “Building a Buyers List” for 1-2-3 Flip, and I’m thrilled that he’s back again with another article:
Top 4 Seller Questions – Answered!
If you’re working directly with motivated sellers, this article is for you…thanks again, Scott!
Hi J,
What do you think of wholesalers and the fact that you’re competing with them when making offers? I’m speaking of people who make cash offers, and most times waive the inspection period, in order to get the property under contract even though they have no intention of purchasing it themselves. Instead they find an actual buyer and “sell” it to that person for a higher price than it is under contract for. I’m just wondering what your opinion is of this practice and if you have any tips for competing?
Thanks!!
karen
Hey Karen –
The best tip for competing against wholesalers is to level the playing field. Get to the point where you can make cash offers with no contingencies, and that way, those wholesalers will have no clear advantage.
Personally, I have no problem with wholesalers, though I don’t find that there are too many in my area who are competing for REO deals. If there were, I’d probably start buying my deals from them instead of trying to negotiate directly with the banks myself. I have no problem paying a small premium for not having to deal with banks… 🙂