How to make $84 on a real estate transaction.
First, you specialize in selling REOs and foreclosures in Poinciana Florida. Then you get leads from a partner, out of the country, who gets paid 1% of the purchase price. Next, you get one of these leads wanting to submit an offer of $28,000 on a property listed at $42,900 and offering a 2.5% co-broke. Finally, you have one of your agents get involved who is on an 80% split.
It looks like this: $28,000 X .025 = $700 – $280(referral) = $420 – 80% ($336) = $84!!! Oh crap!!! I forgot to add in the cost of E & O, communications etc….
Folks we are talking big bucks here!!!!! $84 to the Broker. That’s me by the way. So what do you do? Well you blow the deal out of the water.
Hi Low Baller,
This property is being offered for sale as a short sale. According to the info in the MLS the short sale price that the bank has approved is:
12.9.08 APPROVED SHORT SALE PRICE AT $69,000
It seems like this agent is using the asking price of $42,900 as a “teaser” to draw attention to the property. This means it is getting ready to be foreclosed on. The odds of the lender accepting a price of $28,000 are none. However you may have a shot at around $40,000. Banks have guidelines when it comes to a short sale. They can go no lower than about 92% of true market value. The true market value of this property is about $55,000 to $60,000. These restrictions are placed on them by the mortgage insurance companies who are insuring the loss against foreclosure.
Once a property is foreclosed on it will be priced a tad below market value. In my area a foreclosure will sell for 95% to 97% of asking price. But bare in mind these properties are already priced below fair market value.
Here’s an article about purchasing foreclosures that I wrote that will help explain the process.
If you are still interested in making an offer please complete this form and send over a copy of a bank statement showing proof of funds. I will then complete a purchase offer agreement and send it over for your signatures. Once everything is received back from you I will be able to submit the offer to the sellers’ agent. I hope this helps. END
OK let me guess “But Broker Bryant…..I don’t care about the commission. I never even look. I’m here to look out for my client’s best interest.”
I know….I can do volume!!! There’s a lesson in here somewhere. What say you?
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