Explaining an offer to seller. 65% 70% Rule
Property we have talked about on here before. Address is 1804 Cherry Tree Dr Saint Charles Mo 63304. 1700 sqft. 3/1.5 The seller got in touch with us via a DM drop. Property is listed. We are viewing it as a flip. Arv is in the 150's. Needs 45k worth of work. Property has been vacant for 3 years. Basement is full of mold and was leaking. Needs to be gutted and cleaned. Kitchen is ripped out and builder material is damaged from a dishwasher leak. Maint bathroom is ripped out down to the studs. Every single piece of flooring in the property is either being replaced or refinished. Roof is good. Siding is two tone colored (white on front/rear and light brown in the back). Guy is an out of state owner. We told them our offer would be in the realm of 55k. Home owner claims to be an investor who flips properties out in NY. I explained then that of course he understands that our offer will be based off of the ARV and repair work. His wife on the other hand is stating that they feel like we are "charging them" for the rehab twice. This property is impossible to owner occupy in its current state and the serious offer they did have fell through because the investor realized it was more work then he could afford with offering 85k. This is in a good area and should sell fast. How do you guys recommend we go about this.