How to work the numbers

I am in the process of closing on two properties. Both are motivated sellers and both will help with closing costs. Both properties need rehabbing and have been on the market well over 200 days. I have 5 buyers ready to purchase the properties if the price is right. I am a newbie at this and I don't want to miss out on the opportunity. How do I negotiate to getting below market value and do I flip the houses or do I negotiate and sell to my buyers?

I think u have the just of an offer. The best way to tell FMV(House Market Value), is to check multible site like Zillow. Zillow is not that accurate though.
Here is one from this site. Total View.... just enter the address to get value & comps...

http://www.totalviewrealestate.com/

http://www.deangraziosi.com/fmvcalc

Use these two sites, to get the property value & put in the discount you want for your end buyer.
Play with it a little, but i use these two tools to help make my offers...

OK DWard, I checked the website and got numbers from it. Are you stating that I should make the offer according to what Zillow stated on their website? The price that was quoted to me and the asking price is below what Zillow showed. I was looking to negotiate even below their asking price because of the work that need to be done. So now the quote that Zillow has given me is that the quote I want to ask my buyers for or do I still want to just flip with them and have them do the work? please help I am still confused on this process at the moment.

Thanks!!

Zillow has never been that good in there estiments. Its just there guess on wat the property is worth. I use to check at least 3-5 site to get an idea on what it is worth.
EXP:
https://www.chase.com/online/Home-Lending/home-value-estimator.htm
or
http://www.realestate.com/homevalues/

I noticed that Total Veiw is more accurate on the real value of the home. Dean has it up there for us, just trust it...lol...

But im not sure if your tryning to lock it up or get a finders fee from it?
This is how i make my offers. Lets say property is for sell at $120k. U look up that same property on Total Veiw & find out it reall only worth $100k.
In this case NO ONE want to pay more for sumthing thats not worth the value.
So i would make my offer depending on the repair needed.
EXP:
Home for sale at: $120k
FMV(value): $100k
Repairs at: $10k
ARV(after Repair Value): $160k-$175k
meaning after repair home value could raise to around $175k

I wud offer about $66,500.00

Even if u did not put it under contract, if offer was accepted u cud easy find buyer willing to pay u a sweet finders fee. $1 - $3k...

I have not closed any deal yet, im just getting better in crunching the numbers. Im making my first offers TODAY with my realtor...

Your formula looks right, I agree with DWard, and maybe get two other comparisons for FMV then average from that. What's the worst that could happen? a counteroffer? Go for it!! GOOD LUCK!

DWard, i am confused now though, with your formula I thought essentially FMV and ARV were the same thing, so no sure how you come up with the difference of 60k-70k?? after repairs? This is my biggest fear is knowing how to work the numbers correctly, this is my biggest hold up, and makes me just freeze in fear!

Kristen

So as i know, it goes like this. FMV is the value as THIS MOMENT. Its the current value with wat ever is wrong with it. The "as is" & current value...
ARV is the value after all repairs are fixed on the property. When the property is ready to sell at reatail price. It always good to appraise the property after its fixed up so they judge the property value after its been fixed up. I hope im making this clear...lol...

EXP: You get a good deal cuz paint is peeling inside & out, it will need new bathroom, new carpet & kitchen work. After all repairs, sumone will pay more cuz its all "Move In Ready"... so home is worth more now (Retail Price)....

tool below

I would definitely reccomend the Rehab/Wholesale Tool that reinvestor42 suggests.

Other than that, do NOT trust zillow, total view or any other website's estimate. You need to determine the ARV (After Repair Value) by finding comparable properties that have sold in the area recently. These properties need to be similar to the property in question (ie. similar/same bed + bath, sq ft etc).

You want to know the ARV not the FMV as the FMV is what the property is worth right now As Is. You need to find out how much the property can/will sell for after it is fixed up which is the ARV.

Glen