Considering cold call about purchasing my cabin

[4legsgood]

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

 

[Souschef]

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)

 

[aja8888]

They are just looking for the listing as said above.

 

[freedomatlast]

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.

 

[Jerry1]

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.

 

[4legsgood]

Good info thanks. They said it'll just be 20 minutes so not a big waste of time.

 

[davebarnes]

Tell them you are willing to sell--for a zero % commission.

 

[4legsgood]

They said they'd make a cash offer, but then asked, will a bank loan money on it so that seemed off.

 

[Aerides]

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.

 

[Sunset]

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 ?

 

[calmloki]

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.

 

[OldShooter]

... 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?

 

[The Cosmic Avenger]

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.

 

[pb4uski]

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.

 

[harley]

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.

 

[38Chevy454]

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

 

[jazz4cash]

Make sure to set the showing at sunset.

 

[4legsgood]

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!

 

[calmloki]

Poor feller - I can see why you'd want to sell - it's all soggy out on your front yard.

 

[4legsgood]

Mowing rules my summer and is getting old. Dog will be bummed if I sell.

 

[NgineER]

I think you have a wholesaler on your hands. A flipper could care less about it being able to get financing as they would fix it to get enough market appeal.

Wholesaling is the lowest entry point into real estate. Requires very little money, but nice profits if you move properties. They get the property under contract (with very little earnest money) and then send the property out to their email lists of flippers. They hope to secure a cash deal where they can offload the property to a flipper at a higher price than they are offering to you. They bank the difference in their offer price and the selling price.

If you are serious about selling the property, talk to a number of realtors to understand what the list price should be. List it with the one you think is best and specify that it is sold as is. You will probably leave money on the table, but fewer headaches than dealing with contractors etc. You could even specify cash only, but then you reduce your pool of buyers substantially. You will make a lot more money even with the realtor commission than you would selling it to a wholesaler or a flipper.

 

[4legsgood]

That sounds like good advice. I talked a couple of years back to a realtor, and that property prob hasn't changed much in value due to very restrictive critical areas, and out of date everything. I would also ask the neighbors if they want to buy. I think the neighbors off the lake could make the best use of it as lake access, and possible airbnb. Or I could keep it and hire someone to mow the darn place. Another problem, I feel like the trees on the property are a liability and so I'm also talking to some tree trimmers to see if they could do some significant pruning. I've had trimmers say it's impossible due to big limbs being right over septic drain field, but the trimmers coming out next week said they can tie ropes and lower the limbs. I want to be able to take trips without worrying about the place, may be even snowbird.

 

[Sunset]

Your place looks really nice.

I have a cabin on an island, and at our lake, I've noticed most buyers are friends of someone who already comes to the lake. So once you've thought about the price a bit, a flyer posted around or sent to all the neighbors might perk some interest.

 

[pb4uski]

Mowing rules my summer and is getting old. Dog will be bummed if I sell.

Hire out the lawn or get some goats.... keep dog happy.

 

[4legsgood]

This cold call did come from a group that flips. Their offer was about 20% below my number. However I am considering it due to the appeal of not having to do anything more, and not worrying about the property during the winter sounds pretty good. I have both good and bad memories associated with the place. I know I'll never be able to afford water front in this area again.

Thanks for listening!