OfflineHello, everyone. So, I've gotten my offer accepted on a HUD home in South Philly. The address is 149 Pierce Street, 19148. I've gotten a comparative market analysis done by a Realtor that puts the retail value at $264,000. Based on my independent research, I gathered the retail value to be $250,000 if we had a half bathroom and complete the renovation with a few high end finishes, but my conservative retail value before I placed my bid is $240,000. This home is a 2/1 with a full basement. Philly folks, please contact me with your feedback. Oh yeah, the house is in move-in condition - completely solid with few cosmetic issues. Our renovation costs are around the $40K-$45K mark to sell for $240,000. I'm getting this one for $120,000.
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A little confused?
Realtor puts the value at $264,000
You place the value at $250,00 if you add a half bath and high-end renovations.
The home is in move in condition?
Our renovation cost are 40-45K to hit the $240,000 Mark.
What is the home worth today as is? if you can sell it for $264,000 as is, it sounds like that would be the way to go?
With your success in mind,
Jim McKinney
"With integrity, nothing else matters.
Without integrity, nothing else matters!"
The home's as-is value (fair market value) is $145,761, according to our comp analysis, even though HUD has the as-is value at $160,000. You're referring to the retail value (ARV) in terms of the $264,000. My apologies about the $250,000 figure. If we were to do a standard rehab and not add the high end finishes or additional bathroom, we feel confident that we can sell this quickly at $240,000. Below is a link to the comparative analysis. The home is in absolutely move-in condition.
http://www.narrpr.com/report.ashx?report=4ae6eb8e%5c6651-4f02-9719%5ce68...
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Thanks!
Hello, everyone. I just found out that HUD hadn't signed my contract due to a deposit error. I submitted a deposit of $1,120.00, as requested by the contract I signed. Apparently, the broker was supposed to get 1% of the contract price from me ($1,200.00). Even though it's such a nominal amount I needed to pay ($80), I felt a certain type of way about it, especially since HUD wanted me to overnight the additional funds or drive the rest of the deposit directly to the title company this morning. I received notification at the last minute - yesterday evening - in addition to being out of town. It wasn't my oversight, therefore, I feel no need to go out of my way to correct HUD's error. My deposit will be returned.
Even though I wasn't able to secure this deal due to the deposit issue, I was able to help create magic between one of my buyers/associates and this property. Since he had all the details on this property, he was able to get his offer in and his bid was accepted! I know without a doubt that he will do incredibly well with this one. Even though my plan to flip this to him directly didn't pan out, this is still a 2-fold success story. He and I both benefit from this one deal - financially and as we build a long-term,solid partnership. This REI business is not just about profit. It's also about taking action to help each other accomplish our individual goals!