OfflineThere is a property in my area that is bank-owned. It went for Sheriff's sale in July 2010. It has been listed with a real estate agent since then, starting at $137,900 and gradually reducing in price to the current $97,900. I have NEVER done a deal, and have rarely had the courage to even post on the Dean G site. I am just ready to get started and am going to dive in.
I hesitate to try an assignment because the house has a cesspool and needs to be hooked up to a public sewer line. There is a property directly behind this one (which is empty), and the house I am looking at needs to get permission from the rear house to use the right-of-way to get to the sewer line.
This propery is in a good school district. 3BR, 1.5 BA, detached garage, newly remodeled kitchen. Needs a little TLC on the outside - maybe just a coat of paint, some new spouting and a little landscaping.
I have just started my buyer's list and only have 2 people on it, but would like to contact them and see if they would pay a bird-dog fee to me for finding the property for them.
The cost of the sewer is @$20,000 at most (information given to me from neighbors of the property). The ARV is $146,979 (according to Total View RE).
Just as an example, if they were to buy the house for $95,000 and put in $25,000 in upgrades, they would have $26,979.00 in equity. What would be a fair bird-dog fee for me to receive?
Does anyone see a better way to do this?
Am I just kidding myself on this deal (since it is already listed with a RE agent?)
Thank you so much for your guidance! I am sooo nervous.
Denise Z
Esp. on a bank REO. You need to get a more accurate value or comps from a realtor, then go from that point. I wouldn't rely on neighbor's advice, alone. Go with a contractor's estimate or 2. you can get it for less than that price. If it were true, that $26k price would be equity for the buyers. Your fee is added to your purchase price, and the end price is for your buyer. Greed can breakdown any potential deal. Keep it real, and they will come back for more.
I admire your energy and your get up and go attitude - keep it going.
I hesitate to try an assignment because the house has a cesspool and needs to be hooked up to a public sewer line. There is a property directly behind this one (which is empty), and the house I am looking at needs to get permission from the rear house to use the right-of-way to get to the sewer line.
This propery is in a good school district. 3BR, 1.5 BA, detached garage, newly remodeled kitchen. Needs a little TLC on the outside - maybe just a coat of paint, some new spouting and a little landscaping.
I have just started my buyer's list and only have 2 people on it, but would like to contact them and see if they would pay a bird-dog fee to me for finding the property for them.
The cost of the sewer is @$20,000 at most (information given to me from neighbors of the property). The ARV is $146,979 (according to Total View RE).
Just as an example, if they were to buy the house for $95,000 and put in $25,000 in upgrades, they would have $26,979.00 in equity. What would be a fair bird-dog fee for me to receive?
Does anyone see a better way to do this?
Am I just kidding myself on this deal (since it is already listed with a RE agent?)
Thank you so much for your guidance! I am sooo nervous.
If I get a realtor involved, (and I will) - what is a fair price to pay them for their time? Do they get so much per deal, or a percentage of the deal, etc?
Denise Z
Dallas made some excellent points, and I want to briefly touch on the comment you made about paying your realtor. First of all, it must be paid to the realtors broker, not to him directly. And secondly, if you use your broker on a property already listed, you do not have to pay him, because he will split the commissions with the listing agent. Normally, the only time you pay your realtor is when he/she helps you sell a property you control, and that amount is negotiable. I hope that is helpful. Good luck D, and let us know what happens.
Steve
We seldom get what we want, but we will always get what we expect.
I appreciate you clearing that up for me. I will be making some phone calls today to get more information on this property and exactly what is required. This sounds a little complicated for a first deal, but I feel like even if it doesn't work out - I will gain alot of knowledge along the way. Full speed ahead!
Denise Z