All Topics / The Treasure Chest / low ball offers Take 2.

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  • Profile photo of insiderinsider
    Member
    @insider
    Join Date: 2002
    Post Count: 64
    April 14, 2003 - 12:39 pm

    Steve as you are not an advocate of low ball offers what do you think is an adequate discount.
    EG. FMV 200K

    I was thinking that 10% is suffice. The first 5% is normally negotiating room added on by agents. I would offer 190K and ask for a 10K rebate for costs. Wrap for about 220K. Is that to much of a premium for a wrap. Exit strategy refinance in the next 3-5 years.

    Loan IO. Pull out about 600 cash-flow a month. Not much back-end left as my loan IO but it does allow me to get out of a job. The first 5-10 will be io and the rest P&I.

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763
    April 14, 2003 - 10:37 pm

    Hi,

    I don’t think that there’s a rule of thumb to apply here. Try to negotiate the best discount you can that still results in a win-win outcome.

    Sorry to be vague.

    Based on the deal that you mention, I think you understand that if it makes money then trying to save a few sents may cost you thousands if you miss out.

    Just be careful with the rebate clause that it is properly documented in the contract.

    Bye,

    Steve McKnight

    **********
    Remember that success comes from doing things differently.
    **********

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

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