OfflineHi folks.
I've found a foreclosure in my area that looks interesting. I'm ready to make an offer on it, to wholesale it, but would just like a second opinion.
It's a 2 story, 5 bedroom, 2.5 baths, built in 1970, in a nice established neighborhood. Totalviews estimated value is $159,700. Appraised for taxes at $132,973. Asking price is $82,900. Even if I paid asking price for it, I'd have over 50K in equity. So, in this case, would you still make a lowball offer or just pay the asking price? Hmmmm? I'm thinking of offering 72K to see if they will accept or counter-offer.
One thing that bothers me is the number of bedrooms - 5 bedrooms - that's a big house. Most on my buyers list ask for 3/2. Do you think I'd have trouble finding a buyer for a 5/2? The house is in pretty good shape. Paint & carpet. The kitchen and baths could stand a little updating, but are functional.
I've made a few offers, but for some reason I feel good about this one - like this could be the my first to be accepted.
So, any advice or comments?? Thanks in advance.
Sandi C.
Those who kill time murder opportunity.
"Beloved, I wish above all things that thou mayest prosper and be in health, even as thy soul prospers." III John 2
"To get up each morning with the Resolve To Be Happy is to set our own conditions to the events of the day. To do this is to condition circumstances instead of being conditioned by them." Ralph Waldo Emerson
Have you run comps? What is your exit strategy?
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Sandi, I think most people want a 3/2 simply because it is normally cheaper than a larger house. But in this market, if they can get a good deal on a 5 BR, I don't think that would break the deal. Just let them know that the house will be worth more some day, and they're getting a great deal. They could always use an extra room for an office or a workout room or craft room, etc. Go ahead and let your buyers know what you have. If the price is not way over their head, they might go for it.
Shirley
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Karen, just found this last night. Will get the comps from my RE agent this afternoon. We'll see.
Shirley, I was thinking the same thing about the extra rooms but just wanted to hear what someone else thought about it.
Thanks so much, ladies.
Sandi C.
Those who kill time murder opportunity.
"Beloved, I wish above all things that thou mayest prosper and be in health, even as thy soul prospers." III John 2
"To get up each morning with the Resolve To Be Happy is to set our own conditions to the events of the day. To do this is to condition circumstances instead of being conditioned by them." Ralph Waldo Emerson
Is this house listed on the MLS?
If so, why hasn't it sold?
Find your actual quick sell ARV. Sold, listed and under contract comps. Average DOM also.
Find out what repair/remodel costs are.
Base your offer on the numbers and back it up with facts. Don't just say, "Gee, I think I will offer $72,000 and see what happens"
Good Luck and way to get out there!!
Michael Mangham
MD Home Acquisitions LLC
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
Michael, yes it is on MLS, although that is not how I found it. I don't know why it hasn't sold. I do know there's been a recent price decrease. Maybe because it's an older house, and needs updating, and lots of newer houses on the market? I'm going to try to get in and see it Monday - will be tied up across town most of the day tomorrow. What does DOM mean? I'm drawing a blank.
You're from this area, are't you? You know how it is here - maybe there's foundation problems that is making buyers shy away.
Also I found nstreet's Offer Formula which I will be using from now on.
keb64, thanks for the kind words and the heads-up about proton-beam treatment. Thank God, I am finished with all my treatments and am well on the road to a healthy future.
Thanks everybody!
Those who kill time murder opportunity.
"Beloved, I wish above all things that thou mayest prosper and be in health, even as thy soul prospers." III John 2
"To get up each morning with the Resolve To Be Happy is to set our own conditions to the events of the day. To do this is to condition circumstances instead of being conditioned by them." Ralph Waldo Emerson
Days on market.
Michael Mangham
MD Home Acquisitions lLC
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