OfflineI am looking at a few condos that are listed on MLS as short sales. They are already listed about %10-15 below FMV but I want a better deal. Everything has been newly renovated and updated and is move in ready. When submitting my offer, what could be some possible reasons I should state for offering a lower price? What documents etc. should I have ready when submitting the offers to the listing agents?
__________________
Wow, a ton of questions come to my mind. What state are these homes in? Who holds the note? How long have they been on the market...or the expected time...I would make an offer and if it is excepted then move foreward. Oh, by the way what is the exit stratagy? They might be you're other indicator on how to submit your offer. Are you using a realtor? I would use a buyers agent if the home was on MLS. Let them do the leg work for you because there is a sellers agent involved. Plus, your time is so valuable
Good luck!!
Earl in MI
Earl in MI
DG
2%ER
RBBP
Lifetime Member
Thanks for your response. First off, the condos are 3br, 3ba and are in Northern California. Secondly, I'm not sure who holds the note but I would be guessing the bank since it is an active short sale. I'm not sure how long they have been on the market, but I know they have been for at least a month. The price of one was actually reduced this week too which tells me it has been on the market for easily over a month. Now, my exit strategy. Assuming I did actually pay listing price, after I put $5,000 down, I would expect my monthly payments (principle, interest, home owners association fees, property taxes, home insurance) to come in around $650-700. Other condos (also 3br, 2ba, same sq ft) in this community rent for $900-1100/mo. Most of those condos are not newly renovated like the ones I am looking at. Houses in the area with similar dimensions rent for around $1000-1400/mo. I think I could easily rent it out for $1,000+ giving me a $300/mo positive cashflow. This is in an area with a low to moderate vacancy rate in a city where many people are looking to rent. I want to get a steal on some property now. Unlike many other parts of the country, I feel my area has already hit the bottom market or is right around there now so I need to act fast. I want to rent these properties out now for cashflow then turn around and get rid of them when the market improves for a PROFIT!
I'm looking at the MLS and I'm noticing a handful of homes with mold. I was wondering, has anyone out there delt with a home like that and is it hard to fix that problem? What is needed? Should I let a professional to do it? Is it an expensive problem? I figure I can make a really low offer on these homes. Tell me what you think.
Thanks for your input.
Dee