question on 2 offers strategy

[Nir]

Hi All,

Is it a good idea to put one offer at X amount and another at X + $6000 - where seller is also responsible for replacing the roof and providing proof from a roofing contractor and for purchasing the water tank so it is no longer rented - both on or before closing? (assuming roof is near it`s end of course)

Just wanted to confirm I understand the idea behind the 2 offers strategy and use it correctly(?) In other words, I understand there are numerous ways to do that, just wanted to confirm the specific one above makes sense as well(?)

THANKS.

 

[RedlineBrett]

The "A or B" offer scenario is a great one to use but you have to be careful how you go about it.

Do you really want the seller in control of who goes about performing the work? You don`t think you`ll likely get the cheapest roofing job ever? It might be better for you to just stick with the single offer for a lower price in this scenario.

If you want the seller to bring the property up to your condition (so that you can build the cost of renovations into the deal) you have to be VERY specific about what you`re looking for. IE: specify the company to do the work, what kind of work they will be doing, insist on an estimate from them stuff like that. If it`s proof of the hot water tank that shouldnt` be a problem. This is also your chance to have them buy other appliances (which you must specify in detail). It will take good agents to make sure this gets done without souring the deal. Many a $1500 appliance problem has caused a $500k deal to go south.

Providing two offers is typically more successful when you are offering creative terms. So one offer might be an all cash offer for a lower price while the second might be higher but include some seller financing.

Other common items are delayed possessions, leaving behind certain items of furniture, assuming mortgages... things like that.


QUOTE (investmart @ May 15 2008, 11:45 PM) Hi All,

Is it a good idea to put one offer at X amount and another at X + $6000 - where seller is also responsible for replacing the roof and providing proof from a roofing contractor and for purchasing the water tank so it is no longer rented - both on or before closing? (assuming roof is near it`s end of course)

Just wanted to confirm I understand the idea behind the 2 offers strategy and use it correctly(?) In other words, I understand there are numerous ways to do that, just wanted to confirm the specific one above makes sense as well(?)

THANKS.

 

[Nir]

Thank You Brett for the GREAT input!

Regards,
Neil