Offensive Offers the Scenario.

As I wrote the initial post regarding “Real Estate Offers thay Are Offensive” , it made sense to me to also post a real life scenario of a so-called offensive offer. So below is that story. I hope you enjoy.

Plan: The goal of this transaction was to buy, fix up and flip. Since cash flow on the home would be at a break even point, the buyer’s back up plan was to rent it if it did not sell within 90 days. The home was located near the heart of a prestigious college town.

The Scenario: Client’s Realtor found a wonderful property in what he coined an “up and coming area.” He assured the buyer that this property was well worth $220,000 List Price. So, the buyer did his research.

Here is the information the buyer was able to gather on his own.

The seller owed $180,000 dollars on the home.
The last homes on the market sold and recorded for $175,000-$220,000.
The home needed major repair but under 10k in costs.
The home was vacant. The seller had already moved to their new home.
Current properties cleaned up and without major upgrades were being listed for $220,000 - $240,000

The Question now is what does the buyer offer?

Buyer offered $180,000. His own Realtor told him that was “Offensive” and how could he do such a thing. Despite this, he did not succumb to the Realtor’s pressure and the buyer required that he make the offer.

The seller countered back at $190,000. With a look of astonishment and disbelief, his own Realtor assured him at this point that he should accept this counter offer. Unfortunately the property in its current state was not worth $190,000. So, the buyer forced a counter offer much to the chagrin of his Realtor.

What was his new Counter offer?

$180,000 and a 24 hour deadline. Yes you heard correct. His Realtor was visibly irritated. Again, the buyer’s Realtor let him know again how “Offensive” this offer was.

The seller countered back… $184,000. The offer was accepted!!

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