OfflineI have a property that is a REO.
It has been on the market for a year with no offers.
I got a contractor out there and I am getting a estimate this week.
But now, my realtor emailed me and said, that the property now has a couple of low offers on it.
What should I do ?
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You should go with the highest price offer. Any profit is better than no profit, then you can go onto the next property.
Trying to help,
Eugene
$280k ARV
selling for $117,900
repair cost unknown,waiting on estimate.
Williamsburg,VA
4 bed
2 bath
3000 sq ft
1.0 acre lot
possible 6 bed 2 1/2 bath
I don't have it locked up. But I want to know If I should make a offer before I get the estimate?
I was going to offer $75,000.
There are 2 other offers on the home and I was told they are low offers.
thanks,
Eric
If it was me I would definitly go ahead and put in the offer of 75,000 because you could always go up,it is kinda like fishing if you don't bait your hook and throw it out you are not going to catch any fish,that sounds like a great deal you have going on.
(trying to help)
Eugene
How did you establish your ARV? This is my opinion only!
Through comps (same as your property) sold in the last 90 days?
How many on the market now in your area?
How long on the market for sold and selling properties?
What if you get a good price but properties are not selling for 6 months? Or the rental market is weak?
You must know your repair costs from a licensed contractor. Get 3 Estimates.
I have found that banks are putting their houses out at about true ARV minus repairs. Why put in a low offer that won't be accepted? Find out your repair costs, subtract it from TRUE ARV then subtract what you want to make,this will depend on your strategy!
Example: Wholesale it. ARV minus repairs minus your fee (mark up at double closing since this is a REO and can't be assigned)Minus the profit your buyer needs, minus your money costs = your offer. Don't just throw numbers out there.
You did not state your exit strategy only stated part of your acquisition strategy. Remember it takes both parts to make a "deal"
Hope this helps,
Michael Mangham
MD Home Acquisitions
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
I spoke to my contractor.He told me I am looking at $200,000.00 to rehab this home. We will turn this home into 6 bed 3.5 bath.
Now my realtor says it is hard to figure out a ARV, because there are no homes in the area to compair too.
I should do I get a ARV ?
I am tring to lock it up for $75,000.00
I need to know it I can sell it and make a profit.
Thanks,
Eric