Real Estate

Supergrass
Supergrass

Anyone know how much you think I could bring someone down on their house listing price since I will be paying in cash?

I'm looking to spend $200K MAXIMUM on a house down in Arizona. I'm looking at Tucson right now and a lot of the nice ones that i like are around $250K.

How much do you think the average person would drop if I brought out my checkbook and said I could right them a check right then and now and have the sale be final?

Lord_Tryzalot
Lord_Tryzalot

@Supergrass
No one gives a fuck. They get the same check from a bank.

King_Martha
King_Martha

They will drop that much if they really want to sell. I have sellers drop from 100k to 60k

I would fake some tears and fabricate some epic on how you got the 200k, as well as find a house that has been on the market a while.

Most people have a timeframe on selling and will take whatever once they run out of time.

people will get mad though, so brace yourself for rude comebacks when you tell them their home isn't worth what they think

farquit
farquit

Buy near cotaro, the mall is going to boost property values

haveahappyday
haveahappyday

@Lord_Tryzalot
A quick close is pretty important for a lot of people. Most banks have a 10 business day wait for mortgages.

Deadlyinx
Deadlyinx

20-30% off list price ,and 10-15% for lump sum. Offer 45% off.

Burnblaze
Burnblaze

@Supergrass
Don't fool!

Buy yourself some tax liens and hope they don't pay their taxes!!

If they do pay, then your money is secured and you get a hefty interest premium! !

askme
askme

@Burnblaze
this. or tax deeds, just do your research.

Bidwell
Bidwell

@askme
@Burnblaze
(You)

this. or tax deeds, just do your research.
Tax deeds call for hard cash 40k plus.

Poker_Star
Poker_Star

@Bidwell
well yeah, I couldn't do it. but this nigga talking about stroking a check for 200k.

StrangeWizard
StrangeWizard

@Poker_Star
@Bidwell
(You)

well yeah, I couldn't do it. but this nigga talking about stroking a check for 200k.
Damn you right, forgot his cash statement.

Really from my experience I'm going to tell you this as a realtor we do not care whether you finance or whether you pay cash if you finance depending on the lender we might find you a lender and the highest bidder gets the loan so even though you're paying next month we're getting y amount from the bank the bank doesn't care they're making interest we don't care we get paid immediately either way if we can find someone to finance a $200,000 loan at an interest rate of 3% apy for 10:15 over 30 years we make Bank. Now if you buy a tax deed or obtain a property through a tax lien that defaulted then we're out of luck and you can remodel your lien house

Dreamworx
Dreamworx

@Supergrass
Depends. Cash is nice for people on contingent sale; if you can close quick (<30 days), or are flexible on your move-in schedule, that's probably more important than anything else, since most people selling can't afford to buy another until their current home is sold, so they'll place offers on other houses "contingent on sale".

Long story short, your biggest asset is flexibility, followed closely by the fact that you don't need funding approval to make the purchase (funding falling through is one of the most stressful/painful parts about purchasing houses for most people).

whereismyname
whereismyname

Oh god OP, Casa Grande? Tuscon? Why?

Yeah it's a bit cheaper than in Phoenix but you're gonna be so far from anything. Is this just gonna be a winter vacation home?

happy_sad
happy_sad

@Lord_Tryzalot
This for the most part. People aren't going to pass up tens of thousands of dollars because you can write a check today instead of two weeks from now.

You will however have the benefit of your offer being accepted first over anyone that's obtaining financing.

Sharpcharm
Sharpcharm

In my limited experience (3 investment properties and a primary residence over the years), if you are buying a condo with a troublesome association that makes financing a hassle, you can get some bargains as a cash buyer. It's a double edged sword though, because you are going to want to sell someday, and the problematic condo association can add road blocks to renting it out.

Not my area of expertise (no area is really), but you may be able to fight for a better bargain on new construction/buildable land. As I understand it, financing new construction is more complicated.

TurtleCat
TurtleCat

@Supergrass
Is the cartel still beheading people there? I thought houses would be cheaper

RumChicken
RumChicken

Depends on a lot of factors.

-Always buy from owners directly. You want to deal with idiots, not professionals.
-Come prepared. Know your prices, know example deals in the area, know the flaws of the object and highlight them. Don't make their house look like a pile of shit, but rather appear like you firmly know what the adequate price is.
-Offer immerdiate cash payment, highlight the advantages.
-Offer to pay a part in cash off the records (I don't know about the US, but in these parts you pay a lot of fees which are a percentage of the price on the paperwork and possibly also income tax - it's very common to keep 30-50% of the actual price off the record and split the profits from paying less tax and fees).
-Be polite, but firm. Not desperation, no tear-jerking stories of hardship (my experience is different from @King_Martha
I guess). You have the money, you know the fair price, you make a good offer. The rest is up to the seller. Even put up a final offer and leave them to think about it. Pushing them is counter-productive. In the end you both help each-other.

If 250k is advertised, they're *hoping* for 230k. 200k is entirely feasable. Anything below you'd really have to sell. In essence, it must seem like a better deal to the seller than waiting for a fool to come along who pays the full amount

if I brought out my checkbook and said I could right them a check right then and now and have the sale be final?
Nice flashy guesture, but batshit insane. Why would you cut a check to someone you don't know without any paperwork? I've seen enough fraudsters "selling" nice property, cutting you a really good deal, needing just a tiny downpayment of a few 10k and in two weeks the owners come back from their cruise ship vacation and the "seller" was never seen again. If the deal is properly sealed and notarized, they get their money. If they want something before, put it into escrow. There's too much money on the line to do stupid careless shit like blindly cutting checks

PurpleCharger
PurpleCharger

@Supergrass
Are they working with a real estate agent? Find out if they are and cut them out the transaction. Have them cancel the listing with their agent. They're getting 6% off what the seller is going to gain. Go and talk to them personally. You can work with a title company and you do not have to be an agent.

Fuzzy_Logic
Fuzzy_Logic

Don't forget, Get your contract accepted and dick them down at closing, after due diligence

Harmless_Venom
Harmless_Venom

if your the only real interested person and theyve been trying to unload it for years then they might drop or if they know theyll have to wait a long time for a sale, due to crap market conditions, and you come along early, then they might drop. if its not that, why bother dropping if they know they can get the full value of their ask price.

farquit
farquit

Honestly that's a nice fucking house user. Good luck and I hope you get it. Would love to live there myself.

cum2soon
cum2soon

@Supergrass

holy shit that house would be like 750k in my area.

if its been on the market for a long time you can put a bid in for much lower.

If its been a week and not a single person showed up to the open house then u can put a lower bid.

PackManBrainlure
PackManBrainlure

@Supergrass
Realtors and sellers will claim money is money so paying cash means nothing

That's the opposite I experienced when I went shopping for a house. They all said it, yes, but time after time I got called back by realtors saying my offer wasn't the highest, but the sellers think I'm the most suitable buyer

When a seller has had their home for sale for 3+ months and 'sold' it 2 or 3 times, only to have the buyers finance fall through, they hear cash and they eventually stop being fucking retarded and listen to you

@Lord_Tryzalot
@StrangeWizard
@happy_sad

All will be proven wrong in many circumstances.

whereismyname
whereismyname

@Supergrass
What I learned from real estate is always make a deal, I lowball the fuck out of people and one out of 30 people say yes to me because they are really desperate to sell the house and need the money now.

LuckyDusty
LuckyDusty

@Supergrass

Good deal. Here's an equivalent house in my area.

Soft_member
Soft_member

Hello Fellow Mon From the Bay

Burnblaze
Burnblaze

That house is hideous I wouldn't pay over 150k

TurtleCat
TurtleCat

@Supergrass

$250,000

Oh god why. My mother just bought a 2 million dollar home a few months ago in Vancouver in a decent neighbourhood and it is literally smaller, older and looks worse than this house which actually looks decent. I guess the value is in the land, but fuck.

OP my advice to you is don't low ball too much. I would say it really depends on the market you are in. In my city most rich people pay cash. My mom who was paying cash outbid some Chinese guy by 15k according to the elderly owners we bought the place from. It depends on the circumstances of the sale too. Some sellers need cash ASAP and don't have time to wait for financing although in most cases they do and the higher offer which requires financing will always be more favourable compared to the much lower offer which is cash.

Need_TLC
Need_TLC

House I bought:

Advertised price was $450,000

Was on the market for about 6 months

I emailed the selling agent and said it wasn't worth close to $400,000 and she replied saying "You are wrong"

2 months later it was still for sale so I went to view the property and offered $385,000

They came back with $415,000

I figured "wow, that was a decent drop..."

I came up to $397,000 and said final offer, don't respond unless it's a deal. Despite that, they responded with $403,000.

I ignored it and continued my search for a new home.

The following Monday the agent called and said they want to accept my $397,000 offer.

I wanted to be a smug cunt about it and say "that offer has passed, new offer is (lowball even further)" but I was fairly comfortable paying $397,000.

In between all of that, I put in offers on 2 other homes.

One was on the market for $389,000 and I offered $365,000 and the cocky agent said they're not letting it go for less than $390,000 (above asking price!!) - that one NEVER sold and was taken off the market a month later.

The other was on the market for $485,000 and I offered $420,000 as it was a very inflated asking price in a less desirable neighborhood so I felt I was only really lowballing by about $15,000 of fair market value. Again the agent laughed and said "not a penny under $485,000" - that house has since dropped the asking price to $459,000 AND has a new agent. It has been for sale by 'motivated sellers' for almost a year.

Lord_Tryzalot
Lord_Tryzalot

@Need_TLC

You wonderful bastard. That would never happen here. But impressive. Congrats.

Inmate
Inmate

@Need_TLC

What do you do with these houses?

idontknow
idontknow

@Supergrass
1.set appointment
2.call crew of thugs pay them just to hangout near the house (not doing anything illegal)
3.tell owner you cannot pay this sum for such a bad location
4.????
5.profit

StonedTime
StonedTime

@Lord_Tryzalot
It actually makes a big difference.

People can make offers, then there are complications with the loan from the bank, then a month down the track the sale is fucked up, and the house needs to go back on the market.

It happens a lot.

CodeBuns
CodeBuns

Hey OP, I am an agent from Phoenix. I would love to represent you or refer you to another good agent if it doesn't work out. Shoot me an email and I'll answer any questions you might have [email protected]

Ignoramus
Ignoramus

@idontknow
i payed a group of thugs $2000 to hang out in a fancy ass neighborhood where i was trying to buy a house. pointed out the thugs and with some haggling dropped the house 35k below asking price

Stark_Naked
Stark_Naked

@CodeBuns

oy vey

Lunatick
Lunatick

@Need_TLC
buying cuck sheds

Illusionz
Illusionz

@Need_TLC
Kek. The one my father bought is better:

Advertised around $450,000
Lost property, house burned down
Dad called to negotiate, didn't want to take a loan, so he waited
Property was not maintenanced at all
Literally looked like ass, as if it were abandoned
Property is now owned by a different realtor, dad calls again
Still too pricey
2008 happens
Find out that the property is around $75,000
After negotiations, property is bought

Now we're waiting for property values in the area to go up so we can flip that bitch and milk that fat cow.

Harmless_Venom
Harmless_Venom

@PurpleCharger
Closer to 2% in civilized countries. Aside from that, kicking the realtor to the curb and then signing a deal is a great way to have the real estate board come sure your ass. Most listing contracts have a clause whereby the sale of the property within X days (90 when I write them) triggers a mandatory commission payout. I spend thousands a month advertising my listings so I expect to get paid when my marketing yields a sale.

Tl Dr read the fucking contract before you so much as sneeze.

Techpill
Techpill

@Harmless_Venom

realtor charging 2%

not in usa, or at least my state

near me it will range from 4%(very unlikely) to 7%

Firespawn
Firespawn

house in arizona has no lawn
classic

GoogleCat
GoogleCat

@Supergrass

Have a sex offender move in close by.

Property values go down.

Disable AdBlock to view this page

Disable AdBlock to view this page