I have a very low priced listing. It’s priced that low for a reason. $27,900 to be exact, and in this area that grabs a lot of attention. Naturally, I’m getting a ton of calls and web/email inquiries on it.
The house looks cute from the outside. Newer vinyl siding, roof and well. But inside it’s a wreck. So bad it can’t be financed. I’m not a builder, but a couple of experienced investors have told me it’s going to take $50,000 to $80,000 to do it right. Instinctively, I believe they’re correct.
When I am talking with potential buyers, I always go through my essential questions: are you working with a Realtor; will this be your primary residence or are you an investor; are you able to buy this cash; do you have experience with renovations. I get a lot of ‘ho hum’ responses. “Oh, that won’t be a problem”, “I can get the funds”, “my dad knows a lot of tradesmen”, and on and on. Even after being brutally honest about the condition, some still want to see the home.
I explain that since a pre-approval is moot in this case, I’ll need to see proof of funds. That can be a bank, an IRA or 401K statement or really anything that proves you have the money to back your offer. Black out the address and the account number and fax or email it to me. Without it, I can’t afford to take the time that I would use to do other business.
Most of those calling don’t have the money. They’re hoping or expecting that a relative will help them out. Or they think it can’t really be that bad because it looks OK on the outside. I don’t want to be jerk, honestly, but I could literally bounce like a ping pong ball with this property and never get anywhere – or be able to service my other clients. Interestingly, the buyers that have the money and are seriously looking for an investment opportunity have no problem providing proof of funds. I’ll stick to them.
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