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If your comps are right, you still have a great deal there and should be able to squeeze some dollars out of the transaction.

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Deal pending for a few months

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I have been working on this wholesale deal since February. The seller is motivated and I was able to put the house under contract. I originally offered $220K, but he was countered with $300K. We eventually met at $247K. The ARV at the time came in at right around $400. The house had section 8 tenants and is a two family. The seller used the bottom portion of the house for himself when he worked in the area, but had his own home. At the time, it needed minimal amount of work(some paint, clean up, there was a few tiles missing in the bathroom, but he had it). I found a buyer a week later and everything seemed to be going smoothly. The buyer was going to pick it up for $262K. Now it was a matter of waiting for the tenants to vacate the property. Being that it was section 8 tenants, time was not in our favor as she had to Air Max 90 Black Gold

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the seller and your buyer to see if you can improve your position to where it makes sense.

I suggest you do an all out marketing campaign on the house over the next few days. Place signs, run some ads and have a couple of open houses with realtors if needed.

And if all fails, write it off as another lesson learned and move on. I would certainly use this experience to tighten up my documents, as this a classic example of the risks in a flip where no earnest money is involved, and poor performance by the seller has no consequences other then putting you in a squeeze.

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find a new location which took a good amount of time, then her new location failed inspection because of safety issues, so her new landlord had to get things added/fixed. Fast forward to present day, the tenants just left last week. It has been a frustrating time period, but now that we are here, my buyer would like to try for a $40K price reduction because of market condition changing, plus he went to the property a few weeks ago while the tenant was in the process of moving and he said it was filthy. I met with the seller a few days ago, and he has agreed to clean up the house, repaint areas of the house, clean the bathroom and get into tip top shape. I discussed a possible price redux with him, but he seemed adamant about how he can budge Air Max 90 Br White much further because he owes $180 and needs the cash badly for his other house and other bills.

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Edited Jun 26 2010, 09:08 by Louis Bergman

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My buyer states that his comps show a house a few blocks away that recently sold for $289K with new bathrooms and new kitchen, but when I asked him for the addy, he said he didn remember, but that he would try to get it. I was looking at my realquest comps at the same time and mentioned that my comps still put the ARV in the $390K range, and there was even some recent sales in the $400K+ range but I didn see his $289K that he mentioned. The numbers for the deal still make seem to make sense, and I understand that he would like to try to get a price reduction, but asking $40K, I feel like I might insult the seller and risk losing the deal altogether. The seller did mention that he had a few inquires into the house, and his realtor friend feels he can move it at a close to ARV price, but the seller would rather not gamble with time.

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