Is it Possible to do a Senario?

sounds interesting, try it and see what happens.

Al

I'm game to this idea. I am new to REI and would love to play out a scenario. Kind of like getting your feet "pre wet" sort of speak? lol

I have a 4 bedroom 2.5 bath home for sale. 2240 sq/ft with 6790 sq/ft lot. Also includes bonus room and office. Close to schools, shopping, Desert Preserve and Poppy Fields. Mountain view with easy access to freeway, commuter train and buses.

Asking 275,000.00.

ALL OFFERS CONSIDERED

Assuming this is a faux deal, as your Realtor, I found 5 comps in the same neighborhood.
(1) 4br 2 ba 2050 sq ft, sold 7/20 for $290K, 45 dom
(2) 4br 3 ba 2320 sq ft, sold 8/2 for $310K, 12dom
(3) 4br 2.5 ba 2120 sq ft, sold 6/30 for $288.5K, 66dom
(4) 3br 2.5 ba 2250 sq ft, sold 7/14 for $279K, 120dom(5) 4br 2ba 2900 sq ft, sold 8/10 for $335K, 99dom

As your Realtor, if you have any more questions, let me know.

Al

Now lets see what kind of offers I get and how creative they are

Is it possible to develop a "good" offer if I haven't inspected the house and/or property yet? Without viewing it how would I go about developing a "good" deal without per say any "ammunition"?

ithinkdiff brings up a good point, guys. Can you give us some repair estimates? Or should we assume it needs none?

needs roof repair on front quarter due to tree limb puncturing tree. Back patio 12x25 needs cement repair from tree root growing through cement. Plumbing in kitchen is good but there are water spots around baseboard of floors leading from bathroom.

Water heater need replacement and front door is boarded up (was kicked in by vagrants). Single story home.

p.s.

I was wondering who would ask what needed to be fixed

Is there anyone out there that does repairs or has knowledge of repair cost that can help them here?

What is the listing date of the property? Is the title clean or clouded? Is it a foreclosure/pre-foreclosure/short sale? Is the bonus room counted in the listing (4)? If not, why isn't the bonus room considered liveable space? Why isn't the office considered liveable space? What are repair costs?
The following repairs/costs:

Roof, Back Patio, Baseboard replacement, plumbing quotes for the bathroom

Just kidding.

So we need
1) roof repair (all the way through sheeting?)
2) whole new patio? tear-out/repour (or just a quick fix? I'd ask Jon but he's sleeping)
3) fix water damage near bathroom (leaked through wall or just across floor?)
4) front door repair (need new door or just fix jam/lockset?)

Is a 50-gallon Rheem big enough for that house? I think that's about $700, but we could round it up to $1000. Someone else will have to help with the other stuff and figure in labor.

Oh, btw, if you're using all the comps Al provided, the price per square foot would be $129, therefore FMV would be about $289,000.

Rina

You have a very beautiful home. Why is it again that you are selling?

I'm not just a "Top Rate" Realtor, I'm also a handyman. To tear off and replace the dammaged shingles, drip edge, underlayment and sheathing will cost you $765.50. To break up the cracked concrete, remove the tree root, form and pour the concreat patch, will cost you $280.00. Upon further investigation, the water spots were caused by the leaking roof. The water came down through the wall, damaging the insulation and rotting the base plate. To repair will cost $980.00. Total repairs $2025.50.

Al

A little differance of opinion in repairs needed

Does anyone have a guestimate of the appraised value after repairs? Or am I getting ahead of myself?

Rina calculated value at $289,000.

With the roof, wall, and concrete repairs at $2025 and the front door and water heater replacement at, say, $1000, are total repair costs then $3,000?

And did I figure the FMV right? $289,000?
That would put us at an ARV of $286,000. ($289K-$3K)

Dear anitarny,

Here are my thoughts. After having a closer look at the property I've discovered that it is poorer condition than I originally thought. For example, the roof needs to be repaired. The back patio is needs to be torn out and have the tree stump removed and then repoured. A new hot water heater is needed, as well as the front door being replaced. As you can see there are quite a few things that need work. With that in mind, here is what I would like to offer:

Sale price $250,000.
Seller concession of 3% (sellers to pay 3% of the sale price either to me or toward my expenses at closing).
I can close in less than thirty days.
I would take as is. No cleaning, no repairs, and so on.

Thank you for your consideration,
Rob.

If you were planning to assign this property, an investor would want to pay no more than 70% of ARV. Therefore you would HAVE to get it for less than $200,200 to make an assignment fee. Although, if you had an end retail buyer already, they may be willing to pay more. SO what's it gonna be? I doubt a property at this price would be a good rental (or buy and hold) becasue you would probably have to get over $2000 month for rent PLUS utilities. Might be tough in most areas.

Lets see if I can revise it.

I think we're going to end up overlapping a bit. We'll just have to read between the lines.

It would be good to know WHY the seller is selling. Perhaps she is moving out East to take care of her aunt. She thought the sister was going to do it since she has more money, but she doesn't seem to care. So Anita is going to sell her house and move RIGHT NOW because her aunt is not doing well at all, and will need someone to live with her. And it would be too difficult to manage her own house from a distance.

So, motivated seller, but how to handle deal with sensitivity?

Do I have to use Al as my realtor? Or can I let the seller's agent represent both parties?

The ARV would be the same as FMV or $289K. The $3000 is the cost to bring it up to that value. So the $3000 would need to be deducted from your offer.

______________________-

The listing date is today
It is clearly listed as a FSBO NOT a pre-foreclosure or foreclosure
No the bonus room is not counted - was actually an addition to the back of the house
Office is labeled OFFICE - you can live it if you like
Why are you asking me the repair cost. Was that not the point of this engagement, you must get the quote yourself. I am selling it no repairing it.

______________________-

The listing date is today
It is clearly listed as a FSBO NOT a pre-foreclosure or foreclosure
No the bonus room is not counted - was actually an addition to the back of the house
Office is labeled OFFICE - you can live it if you like
Why are you asking me the repair cost. Was that not the point of this engagement, you must get the quote yourself. I am selling it no repairing it.

Why yes Rina, you can. I am selling because I recently lost my lost my husband. I seemed to have left him somewhere in MEXICO...hmmmm..
and I also have 2 kids that recently left home to go to college. It has really just gotten too big for me.

Whoops. Ok, $289K. (I thought too far. )

No you do not HAVE to use AL as your agent