Sunday evening when Hick returned home from his SUS2 (Storage Unit Store 2), he said he had just talked to our realtor about the Double Hovel flip house. She had an offer from an investment company in the city. They had not toured the property, but were going by the website pictures alone.
Investment Co wanted a decision within 24 hours. It would be a cash deal, to be finalized within two weeks. They would pay all closing costs, and did not want any inspections.
The offer was the same as the previous lowball offer that Hick did not even counter.
Hick was pushing to take this deal. I said I did not agree. I called The Pony, our investment partner. The Pony also said no to this amount. I reminded Hick of what he had stated would be our bottom-line price. The Pony and I said we would agree to THAT amount. But not a penny less.
Hick sent a text to Our Realtor. She had said she needed the info by Monday morning, since she had an appointment in the city on Monday afternoon. By 9:20 on Monday, she responded to Hick that Investment Co was not interested in the Double Hovel at our bottom-line price. Which, I might add, was a considerable reduction from the asking price.
The Pony was okay with that, as was I, because overnight I had been thinking that maybe we shouldn't drop the price so much at this time, seeing as how the Double Hovel hasn't quite been 30 days on the market. The Pony was afraid Hick would be cranky and disappointed, since he had been pushing us to take this offer. When I talked to Hick midday, he was not at all upset.
"They were trying to steal it!"
I agree. The pressure of the 24-hour response was the first clue. Wanting the deal done within two weeks was the second clue. Not bothering to drive one hour to actually tour the property was the third clue. Seems like their tactic was to pressure us into selling fast, before we could think it through. We are not real estate rubes with a cash-flow problem.
Yes, we could still have made a 33% profit on our investment if we sold at that price. But our bottom line deal would give us a 66% profit. If that investor saw it, another investor can see it. We are content to wait. With the difference between that offer, and our bottom line counter offer, we could afford to pay electricity, water, and insurance costs on the Double Hovel for 12 years!!! I'm pretty sure it will sell sooner than that.
Investment Co gave us a lowball pitch. Hick took a swing with our counter offer. It was a miss, but we're still in the game.
I think you made the right decision Val! Don't you just love those investment companies?
ReplyDeleteYou can't really blame them for wanting to make money with a quick deal. But you CAN blame them for trying to take advantage of people. Of course, there might be some sellers who are desperate to get out from under their loan, who would jump at such an offer.
DeleteIt reminds me of the letters we get from out-of-state companies, offering us $17,000 for one of our 10-acre plots of land. Even around here, land is going for much more than that!
Good for you and your "team". I still regret agreeing to cut the price of a collectible book below the 20% discount I was already offering to another book dealer many years ago. He must have thought I was a real rube!
ReplyDeleteI'm lucky to have The Pony as the swing vote, because we are not as hasty as Hick in our decisions.
DeleteThat book dealer was probably too busy rubbing his hands together in glee, anticipating his profit for re-selling it! Sometimes giving a such a discount is smart, if it can bring you a lot of repeat business.
I wonder if the "Investment Co" is actually the same person who tried the low price offer and now thinks an Investment Co might make him sound more important, like those scammers who write longwinded letters trying to sound as if you are missing something amazing if you don't "buy now" (or sell now)
ReplyDeleteI don't think so, because of offering a cash deal. But since there was no actual deal made, it's possible. Anybody can promise anything over the phone!
DeleteIt IS odd that the amount of the two offers was the same. That's less than our realtor said the main house would sell for by itself.