OfflineI went with my Realtor last week and looked at the houses he found where a very good deals. @ of the deals just need some cosmetic work one was 250K comps close to 300K FMV the other was 260K (comps the same) on the market for 260 days both are short sale these one the owner has an outstanding loan $362K wanted to put an offer in and do a wholesale to re-assing the deal but was affraid what to do and how much should I put the offer in. Any thoughts?
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Low 2's I would say. 260 is 87% of FMV. Add in repairs (even cosmetic) and you are probably looking at 90% of FMV. Nothing to see there.
you want to get the property at 50% or 60% of its value. If you do the repair and cosmetic work, then you still have adequate room to make some $$, otherwise, the one above is not really a a great deal as Mark pointed out. I'm very happy for you though and your persistance to make it happen. Good luck and keep looking around. Soon or later, you'll find the one that pays off all your hard work.
Lloyd
Thank you very helpful. So if the everage what the houses are saling here are 250K-300K 50% of that 125K-250K that is for what I have to go for? I'm not sure I will find something like that here or would I. Is that what they mean when they say make a lot of ofers to find motivated salers. Thanks any thought are helpful.
It's hard to make a rule of thumb. But yeah.. I think 60% is a good number to shoot for depending on repairs. It will almost assuredly need some- maybe new paint and flooring.
If that is all then consider yourself lucky. When I am looking at repairs, I am NOT discounting my offer by the amount of the repairs. I am discounting it by MORE than the cost of the repairs. So if I am seeing 20K in repairs then I am lowering my price by 30-40K.
Remember that in this market there are VERY few buyers. And even fewer buyers who can actually put something together.
Also, there is are any number of houses that you can buy. But only one house that this seller can sell. So who needs whom more???!!