Starting a Probate Offer

A few weeks ago I found this house that was vacant, and it just so happened that I was across the street talking to a homeowner about a small job that he was needing and in conversation I told him that I also buy houses. He told me that the house across the street was for sale and that I could probably buy it pretty cheap. He had tried to buy it a few months earlier and they were not able to sell it because it was still tied up in Probate.

Well I took the address down so that I can do my research on it. When I drove away I said to myself that I really should go back and at least walk around the house, if it was possible because the shrubs, grass were really high, and see what condition it was in, at least on the outside. Well to my surprise as I arrived back to the house there were the owners. A very nice elderly lady and her sister (2 of 5 that are on the title). They were there to put up a sign “FOR SALE” WOW!

I spoke with them for quite a while and found out that there are actually 5 siblings that will need to agree to the price and sign off on it. But she said “I AM VERY ANXIOUS TO SELL BECAUSE I HAVE BEEN THE ONLY ONE PAYING FOR ALL THE EXPENSES, TAXES, INSURANCE, ELECTRICITY, CODE VIOLATIONS AND SHE IS SICK OF IT” her very own words. I think this is what you call a motivated seller.

Well I asked her what she felt they would be wanting to get for the property? She said – RELUNCTANTLY – about 50K. The house is in a neighborhood where homes are selling from 85K to 90K. I ask her if that was negotiable due to all the repairs the house needed. She said make me an offer. I told her that I would get back to her that I really wanted to do my do diligence on the property. The house has 1 lien and it needs about 25K in rehab. I have already spoken to a couple of my buyers about it and I can sell it QUICKLY for 40K if I get it for 35K.

I called her and explained the situation, the lien, which she new nothing about and detailed the repairs. I asked her now that she new these things would she reconsider the price of 50K she said yes “CAN YOU GIVE US $35K CASH AND CLOSE QUICKLY”?

My response was “YES”. She will speak to her family this weekend and I should hear back from her on Monday or Tuesday.

Now I wait because the next one to talk looses. I will wait till she calls me, she knows I am willing to give her 35K Cash and close quickly. I don’t want to seem to anxious because I have been the only offer since she put the sign up, but that is only because the sign is so small that you literally need to stop and get out an read it with in 3 feet. You cannot see the sign from the street. Well now I wait.

The rest of the story later.

Gene.