OfflineI have found a FSBO that has been for sale for about 3 months now. It is a 3 BR 2 BA, 1,416 sq ft, lot size is 5,231 sq ft. It is a single family, double garage.
Land Homesite Value: $15,745
Improvement Homesite Value: $94,259
Market Value: $110,004
Appraised and Assessed Value: $110,004
2011 Property Tax: $2,791
Total View: $103,030
Zillow: $107,600
Value Range: $88,000 - $118,360
Rent Estimate: $995 - $1,200/mo
Appraisal.com: Mid Value: $109,533
Value Range: $93,103 - $125,962
Comparables Sales Data through Total View:
$103,250 - $143,367
1,377 sq ft - 2,293 sq ft
$63/sq ft - $77/sq ft
The owner is asking a price of $118,000
Property Taxes are up to date, nothing owed.
100% ownership
I wanted to know how would I go about with this deal? Is it possible? I have researched the information that I think is necessary. Tomorrow I will be calling the owner and asking questions that I have written down from Dean's books.
The house is in a very good area, there is a nearby high school.
I would appreciate any feedback.
Thank you,
Michelle
FSBO on the market for 3 months at least: Priced too high, haven't reduced yet (or not enough), no flexibility, maybe not enough motivation to sell.
5,231 sq. ft. lot: Is that more than 1 lot? If so, that's a good point for you.
Most website valuations: Either use wrong data, or none at all. Don't rely on them too much more than for a very vague overview of very hot markets only.
Comps through TotalView: That's nice you had those for your area but, do you have "on the ground" stats from a real estate agent or broker? It's AWESOME that you listed price per square foot. Let that direct your offer pricing more than most things. Which brings me to your biggest obstacle...
Sellers want $118K, you said yourself it's barely worth $110K: Goes back to what I said at the top. They want retail PLUS for their deal. Don't try to cram this "alligator" into a diamond costume. Sellers are trying to hit the lotto off this house. In this economy, keep your eyes on it. If it was going to sell for $8K+ more than it was worth, it would have already.
All taxes are up to date: It's alright to take the sellers word for this... AT FIRST. But make sure as part of your due diligence you have a title and lien search ran on the place. You'd be surprised what sellers are willing to forget about when they want retail PLUS.
Is it possible? Of course, if you give the sellers what they want. But they want far too much, and someone should be hinting to them about that any day now. Either they haven't reduced the price, or they have, just not enough. Try to find out why they're selling in the 1st place, why it hasn't sold yet, how you can solve the sellers' problems, what they are, etc., etc.
What were you thinking about doing with it? Does it need fixed and "flipped"? Would it make a local landlord a good rental? Would you like it for yourself? Before you ever try to buy it, you should already know how and why you're going to sell it. Hope all this helps. Best of luck to you...
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
Michelle, I don't understand what you are asking? Do you have a game plan for this property?
Raymond
Michelle
have you talked to the owner,how motivated are they,why are they selling now,is the price nagotiable,what is your exit strategy.it dosent sound like there is any room for you to make any money on the deal & thats why we are all on this site
good luck Matt B
Right now there is no deal on this property. As mentioned you will have to find out how motivated the seller is. Also are there any repairs that need to be done on the property? It looks like it is priced at market value. You will need to make an offer right around 30% below that minus repair cost as well. Get more information from the seller and see if there is any room to negotiate. If there is run your numbers and make an offer and see where it goes.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
fmv x .65 or .70 - repair cost - your profit = max offer
L/O possible?
owner finance
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
fmv x .65 or .70 - repair cost - your profit = max offer
L/O possible?
owner finance?
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools