A little less than a month ago I was sitting in front of an Investor who had called me about putting his Rental Property on the Market. I had done all my homework and felt that the property a 1907 Fixer located in the Alberta Arts District of Portland Oregon should sell fairly quickly at the listed price of $259,000.
The prior three weeks leading up to this point in time had been spent in research for value. The property is somewhat nonconforming in a good way. Providing comps was the tough part. The Seller was to give notice to the tenants so that we could begin with a vacant property.
The key to selling Fixers is accessibility for Buyers. They frequently have very tight schedules and will like to see on the spur of the moment.
So as I sat there in front of the Seller I was totally surprised by the fact that no one in the last three weeks had begun the process of giving notice to the tenants. On top of it the Seller was now leaving to go out of town and would be gone for four or five days.
Setbacks like this are an inconvenience, and unfortunately just part of the business. I began the marketing by putting into the MLS and an add on Craig’s list. Within a few hours the phone began to ring from prospective buyers and real estate agents.
I set up the first showings for eight days later. It was all complicated as the tenants did not speak English and I was left to wait until the Seller returned home.
The first showings did not go all that well. I arrived about 15 minutes early to discover the tenants who were supposedly going to open the doors, were not at home. A quick call to the Seller and the twenty some buyers and agents were all left to wait as the Seller made his way to the property from a small community near by.
When he arrived finally he discovered that the tenants had changed the lock and he was not able to provide access. Disappointed several of the buyers and agents began to leave when the tenant showed up and gave access.
A rocky start to say the least. As the buyers began to filter through I had that one on one heart to heart talk with the seller about access. He quickly said that he would produce a set of keys for me as I had previously asked for admitting that he had thought that it would not be necessary even though I had previously warned him.
The first round produced nothing. Over the next few days I began to field calls and set another showing appointment for 4 days later. This time armed with the keys the showings went off without a hitch.
Some two hours later the call came in from a Buyers agent and her client. They had written an offer of approximately $20,000 shy of full price. I gathered up the paper work and made my way towards the office. I had just barely left her side when the phone rang again. It was another Buyers agent and there Buyer had written a full price offer. All cash to close in 15 days after inspections.
Feeling much better now and armed with two offers I made my way towards the office. Once again the phone began to ring. It was Chris one of my long term clients who I had told about the property right after I had listed it. Chris had been busy but wondered if I could meet him at the property within the hour to show him. I told him that I had 2 offers in hand all ready. He said that he still wanted to see the house. I called my sellers and they said that they would not be available until the following morning.
Chris loved the property and after walking outside asked how much it was listed for. I told him the listing price was $259,000. You have 2 offers in hand already he asked. Yes I do.
I will offer $269,000 cash a 10 day closing no inspections no contingencies. Fine I said and began the paperwork. The following morning the Sellers reviewed all of the offers and quickly accepted Chris’s offer.
The Property Closed 3 days ago. I asked Chris what compelled him to write an offer $10,000 above full price. He said that he new there were other offers and that in five years he probably would not remember the difference between $259,000 and $269,000. But he would instantly be angry if he lost a great property over a lousy $10,000 bucks.
When the Fixer Market Heats Up Will You be Ready ?
Herb Hamilton is a Real Estate Broker with RE/MAX Preferred Inc. Realtors working in Portland Oregon
” A Real Estate Transaction with Herb is one YOU will Profit from “
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