OfflineHi everyone, new to the site... almost finished reading "Your Town Your Real Estate Profits". Really love all the information from Dean and so excited to get my first deal... its 3 weeks since i read Dean's first 2 books and almost done the third.
I came accross a FSBO in a really nice and high end town in Canada... oh yeah - from Canada.
The home is still under construction but will be done in one month. The flooring, kitchen, painting - basically all interior finishing touches. Landscaping will not be done
This was not an investment project, but a home for the owner himself, so he is not going cheap on the amenities and construction.. He is basically building it for himself to live in.
I called the gentelman today and he is selling a 10,000 sq ft lot, 3200 living space, hardwood floors 4br 3 bath home.
However, i asked why he was selling, if for a profit or personal reasons? To my surprise, he has personal problems, cannot live there no more and has to stay where he is currently living - personal problems.
He is asking $695,000 negotiable.
Not really sure how to move forward on this... don't want to offend him - been reading the book and have a few ideas but not quite sure how to get these negotiations off.
Thanx
Whats his incentive to sell at discount and most investors who see it will see no incentive to purchase it at that price unless the comps are over $1m for a decent spread.
Even if he's saying negotiable I doubt he's taking more than $30k off the price. I could be wrong
This is strictly for an end user.
Hey thanx for the reply...
The interior is not even finished yet - its a brand new construction , never been lived in. He has put a hold on the interior because he is waiting for a buyer, which he will then finish it. He told me that all the materials (hardwood floor, appliances etc... ) are all on deposit.... all is ordered.
Incentive - i'm not sure.. the only thing i can see is that he is stuck with it.
He was supposed to move in but cannot as i mentioned already due to personal problems.
The only thing that i can see is if it doesn't sell quick and just sits there for a while, then he will have not choice but to take a pill. Either way, i don't think he will take a very big pill because he is building it himself.
As for the comps - the area truly is high end. there are homes over a million there, just not beside him. He is on the main street. It s a little town, kind of like a community, up in the mountain. There is only one entrance from the highway and it does an entire circle around the moutain and you end up at the same entrance, which greets you with a fantastic semi-private golf course.
I'd say he is pricing it based on the comps, but his true cost is not even close.
As for the comps - the area truly is high end. there are homes over a million there, just not beside him.
I'd say he is pricing it based on the comps, but his true cost is not even close.
If the size of his house is similar to those million dollar homes and 1/4-1/2 mile in difference he might be able to get his price.
Do your research on that. Plus, if its in as nice an area as you say, most may overlook the general requirements for a traditional comp and go with it
Good luck
Thanx so much for your feedback - really appreciate the time. So you think I should
Start with comps with the mile radius and try to negotiate him on a seller backed finance
If willing?
Start with comps with the mile radius and try to negotiate him on a seller backed finance
If willing?
please