Are you a FSBO seller? Are you selling your own home? Are you hoping to get a cash offer for a quick close?
Well, you must prepare yourself for unqualified buyers, wholesalers and in some cases lowball offers. The challenge with some of the For Sale by Owners is that they get insulted when they receive a low offers from a buyer.
Keep in mind that a lowball offers could be a negotiating strategies. After all they are still valid offers and just because these buyers are not coming near your asking price; that does not mean they are not interested in your property.
So, check the following items on these lowball offers and counter them based on:
1) Offer Price: Wholesalers often offer 5-10% below your list price since they need to create room for their commission when they flip the contract. So, watch out for low ball offers from these wholesalers.
2) Funds Source: Real Estate wholesalers often use funds that are typically sourced from an LLC that these Wholesalers have obtained with a fee. And since these kind of letters are issued to many wholesaler and are not worth the paper it’s printed on.
3) COE: Close of Escrow (COE) is another strong indicator that you are dealing with wholesaler since they often ask for 30-45 days to close.
4) Deposit: Wholesalers often offer less than 1% of their offer price as their initial deposit. Since they only want to risk very little money in case they are unable to flip the purchase contract.
Finally, according to National Association of Realtors, 28% of the homes sold by their owners were under-priced which is a huge loss. So, Contact Us if you need help with your Silicon Valley home sale.