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Considering cold call about purchasing my cabin
Old 11-13-2019, 04:16 PM   #1
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Considering cold call about purchasing my cabin

I have a cabin that I bought in 2012, that is special (maui quality sunsets, great swimming lake), and difficult (built in 1948, few updates, probably impossible to expand). I get cold calls from real estate people a couple of times a year who say they would like to make an offer on the place. They would look at the place and on the spot make a cash offer. Has anyone followed through on such a thing and if so, with good or bad results? I've been thinking about selling it. There is huge appeal to not having to get it to 'staged' state, deal with contractors, negotiations, etc. It seems like it would be so unwise of them to make an offer after a 20 minute inspection, so I don't get it. I am meeting them next week, prepared to say no, but hoping I'll learn something.

Thanks
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Old 11-13-2019, 04:54 PM   #2
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I have a cabin that I bought in 2012, that is special (maui quality sunsets, great swimming lake), and difficult (built in 1948, few updates, probably impossible to expand). I get cold calls from real estate people a couple of times a year who say they would like to make an offer on the place. They would look at the place and on the spot make a cash offer. Has anyone followed through on such a thing and if so, with good or bad results? I've been thinking about selling it. There is huge appeal to not having to get it to 'staged' state, deal with contractors, negotiations, etc. It seems like it would be so unwise of them to make an offer after a 20 minute inspection, so I don't get it. I am meeting them next week, prepared to say no, but hoping I'll learn something.

Thanks
I used to get these all the time. They would call with a claim they had a buyer for my place. Truth be told, they did not, but wanted me to list my place with them Vendor Emptor (Let the seller beware)
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Old 11-13-2019, 04:56 PM   #3
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They are just looking for the listing as said above.
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Old 11-13-2019, 04:59 PM   #4
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I get this type of solicitation quite often for my rental properties. Never followed up since I'm quite sure any offer would be well below market value or it's actually a realtor trying to get a listing through deception. Let us know how it goes.
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Old 11-13-2019, 05:06 PM   #5
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They said they would make an offer so not so sure they’ll be looking for a listing. My guess is that the offer will shock you, may even insult you, but, as you said, they’d take it off your hands and you’d be done. No muss no fuss. You’ll have to decide what that’s worth to you.

They’re not worried about the inspection because they’re either only interested in the land or they assume they’ll have to do a lot of work and have that priced in. Either way, their offer will reflect that.
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Old 11-13-2019, 05:13 PM   #6
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Good info thanks. They said it'll just be 20 minutes so not a big waste of time.
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Old 11-13-2019, 05:13 PM   #7
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Tell them you are willing to sell--for a zero % commission.
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Old 11-13-2019, 05:17 PM   #8
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They said they'd make a cash offer, but then asked, will a bank loan money on it so that seemed off.
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Old 11-13-2019, 05:22 PM   #9
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They said they'd make a cash offer, but then asked, will a bank loan money on it so that seemed off.
Sounds like they plan to flip it. So they will pay you cash, but intend to sell it to a buyer who would typically finance.

Whatever they offer you will be low ball, and it's worth the bother (imo) to at least shop around for other offers and get an independent appraisal. If that sounds like too much bother at about $50k to whatever they offer, and promise yourself you'll never look at zillow to see what it ends up re-selling for 6 months from now.
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Old 11-13-2019, 05:28 PM   #10
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OP - now I'm curious.

As to your question, no harm in them looking, however I feel certain they will lowball you, or tell you they have a buyer but you have to list with them to sell it.

Since you know what you paid in 2012, you know what would be acceptable to you as a selling price.

How much land is involved and is it waterfront, what is the size of the lake ?

Any photo you can show us to make it exciting ?
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Old 11-13-2019, 05:34 PM   #11
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The agent who lists your place gets 1/2 the commission, splitting with selling agent. Makes getting a listing a real profitable deal.

We had a call with offer to buy outright on a triplex this summer. Their first offer, after hearing our current rents and seeing interior pictures, was below the tax man's "Real Market Value". In fact I figured it was about 2/3 a real reasonable price. That was before any inspections, which don't normally result in a higher price being offered.. Didn't bother pursuing his offer. Another small rental house sold at the end of summer for 14% more than the tax man's RMV.
There is a real estate money making theory that has a buyer making dozens and dozens of offers for super cheap prices. Buyer doesn't get but a few responses, but is liable to get one or two for cheap. If you do well buying then selling can be really profitable.
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Old 11-13-2019, 05:49 PM   #12
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... There is huge appeal to not having to get it to 'staged' state, deal with contractors, negotiations, etc. ...
How much appeal? $2K? $4K? $10K? Be sure to have a hard number in your head. That is the amount you are willing to discount the property to avoid this work.

+1 on probably a realtor looking for a listing, but why would anyone list with a known liar?
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Old 11-13-2019, 05:58 PM   #13
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I never do business with anyone who pitches me. I do my research, determine the fair market price, and then take offers based on that knowledge. So I'd get a professional appraisal first, then you'd at least know if the "on the spot" offer was fair. But me, I wouldn't deal with those kinds of sales people in the first place, I just don't like that kind of thing.
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Old 11-13-2019, 06:50 PM   #14
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They said they would make an offer so not so sure they’ll be looking for a listing. My guess is that the offer will shock you, may even insult you, but, as you said, they’d take it off your hands and you’d be done. No muss no fuss. You’ll have to decide what that’s worth to you.

They’re not worried about the inspection because they’re either only interested in the land or they assume they’ll have to do a lot of work and have that priced in. Either way, their offer will reflect that.
+1... from what the OP wrote it sounds like one of these buy ugly houses outfits or a local looking to do the same thing... make you a lowball offer for your property.

My solution to the real estate agent that calls and allegedly has buyers in hand for my property was to respond that I was willing to do a listing with them for two days... allowing their hot buyer to look at the property and make me an offer if they like it that I would accept if the offer was high enough... I never got any takers on that one.
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Old 11-13-2019, 06:56 PM   #15
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During a FSBO attempt I got dozens and dozens of these calls. 98% of them were realtors looking for a listing. A few were people looking for us to hold the mortgage for them. Not a single one was actually a legitimate offer, not even a low ball offer. YMMV, but I wouldn't waste my time.
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Old 11-13-2019, 07:08 PM   #16
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I agree that even if you get an offer it's going to be real lowball. The question about mortgage tells me the buyer is a flipper. So more evidence of a real lowball offer
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Old 11-13-2019, 07:29 PM   #17
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Old 11-13-2019, 11:55 PM   #18
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Don't know if i attached pic properly.

i do have a number in mind, and they'll prob offer well below or less...but we'll see!
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Old 11-14-2019, 09:15 AM   #19
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Poor feller - I can see why you'd want to sell - it's all soggy out on your front yard.
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Old 11-14-2019, 09:32 AM   #20
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Mowing rules my summer and is getting old. Dog will be bummed if I sell.
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