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.
We had a rule of 20 percent off to other book dealers. But this guy wanted more and, like an idiot, I gave it to him!
DeleteI guess the positive take-away from this incident is that it taught you not to be an idiot!
DeleteI 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.
If you read my blog, you know I was buying a car and being pressured and lied to around every corner. We are buying two cars and selling the ones we have. One of the buyers is trying some fast talking and making up sell/buy rules, but I don't fall for these and hold my own. It is the only way to survive when buying or selling anything. I am glad you held out.
ReplyDeleteYes, they will tell you anything to get the sale. If it's not written up in the contract, good luck! No salesman is making a deal to HELP THE BUYER of a car! As you know, you have to put pressure on them to get what you paid for.
DeleteAlso, no buyer is fast-talking to give YOU a good deal for selling your car to them. So it's good to be suspicious, and take your time to think things through.
On a different note, my dad used our address for his mailing address and recently received a letter from a local car dealership, offering to buy his pickup from him. Well, I called the number that was listed and talked to his receptionist, who assured me she would give him the message, which was to inform him that my dad had passed away in June and his pickup had already been sold to a family member. This was meant to also stop anymore mail coming for him, at our address. Yesterday, he received another letter from same salesperson, thanking him for showing interest in his last letter and that he still had 7 days, if he wanted to sell his pickup!! It was clear that whatever message she gave him, he did not read or listen to the context and assumed it was interest in selling the vehicle. Now I wonder how many more times he will receive mail from this place in the future. One of the hardest things to do is getting companies and people to do whatever process that is required, to get them to stop their snail mail from continuing. Some people would be emotionally triggered by things like this happening. Fortunately, I am not one of them, but geez! I just keep putting it in the recycling. I have contacted magazine addresses, various reoccurring mailings and places he regularly donated money to, asking them to stop sending stuff, to no avail. Maybe 2 or 3 out of a dozen or more, have responded and said it may take a few mailings, but they would stop eventually. Apparently, they are processed out a couple months in advance. It stinks. Ranee
ReplyDeleteI'm glad you are not emotionally triggered. Nothing is simple to stop these days.
DeleteYou made the right choice. Always go with your gut feelings.
ReplyDeleteThe sense of urgency made me suspicious, but the offer itself was not reasonable. Good thing The Pony and I can control Hick chomping at the bit!
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