This deal happened a little while back. I got a call from a local real estate agent that I have worked with in the past. He just got a property and put it on the market that day. It was a 3bed/2bath brick house on 4.4 acres with a pond and a 40 x 60 metal workshop building. It had a tax assessed value of over $96,000. The asking price was $51,900 and because it was a good deal, and there was some others looking at the property, I decided to make a full price offer.
Once my offer was accepted, I took several pictures of the property and then wrote an ad and put the auction on ebay for 30 days, which was 2 days after I was scheduled to close on the property myself. I was asking $84,900 Since it was a foreclosure, it was sitting vacant and it had a lockbox on it so I could show it anytime. I got several calls, but then I got a call from a guy that just sold his house in Florida and he had cash to pay and saw my ad and liked what he saw, so we made an appointment to meet at the property. When we got there he was pointing out everything that was wrong with the house. That was okay, because I knew what he was doing. he was getting ready to make an offer. I had room to play, so I just sat back and listened to what he had to say and made small talk in the meanwhile. After hearing about every imperfection in the house, Finally he made an offer for $65,000. I told him that was to low and I told him that I would accept $75,000 he countered back at $70,000 and we agreed on a purchase price of $72,500 and we wrote up a contract. it would have been great if I could just do a dual closing, but I had the money at the time, so it did not really matter to me. I closed the deal to purchase the house and then 3 days later I closed the transaction to sell the house. But right before the closing to sell, the buyer called me and told me there was fire damage in the attic and that we needed to talk. I went over to the house and sure enough, when he took the flashlight in the attic, it kind of looked like the wood had been burnt in a fire. It was still sturdy enough to hold, but it was damaged, he said he could replace everything and do all that, but he wanted to renegotiate the price. he was just trying to save more money. I could have said no and tried to find a new seller, but why? I did not want to deal with it, so I agreed to take $69,500 which is a concession of $3000 for the damage. That was okay with me, because I was able to walk away with over $17,000 and I had borrowed the money from the bank, so guess what happened when it got paid back in 3 days? Everyone at the bank was very impressed and the next time I walked in to borrow some money, they were eager to give it to me.
I do deals like this all the time!
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