I love the optimism of real estate investors (flippers).
I was honored to be selected to list this 3 bedroom charmer in central Plano. The property was listed on Friday for $225,000. By Sunday, the sellers had received 16 offers (all over the list price) and selected an offer to work.
This morning, I received an offer from an investor with this accompanying email...
"Attached is the cash offer for your listing. I understand the offer is below list (offer was $165,000 on a property listed for $225,000 on THE FIRST WEEKEND OF LISTING), we don't mean to insult you or your seller. This is what we will need it at after viewing the property and running our rehab numbers. Please note that it is all cash."
"Thanks for the offer. The seller has already executed an offer from the 16 offers they received over Saturday and Sunday. All of the offers were over list price, many were all cash. Would you be interested in being considered for a back up offer?"
Now don't get me wrong, I love making offers with a "value edge", but I also know when to pick my spots. Making an offer 25% below the listed price on the first weekend of listing makes no sense. Maybe wait and see if the property is still listed in 15 days, then try to get your offer in?
I also enjoy their offer disclaimer. "This is what WE will need in order to make our numbers work..."
My response to this is always the same, "It is not my client's job to make you rich. We will explore the market, and if your offer ends up being the best, my seller will accept your offer.
Your need to buy something for an exceedingly low price, then try to flip it for a large profit is not my responsibility. My responsibility is to help my client sell this property for the highest possible price in the most convenient time frame possible.