Looked at My First Property Today - How Should I Make an Offer?
I'm currently looking for a duplex in Danbury, CT for my first piece of real estate. I sent a small letter campaign to all the duplex owners on a street and got a response on one! The owner wants to move to Florida within the next few years, but said he would sell "for the right price".
I met him and toured the whole building today. It doesn't need any immediate work. We talked income and expenses (though his book keeping is lax), but didn't discuss purchase price yet. I'm wondering what my next move should be. Should I send a letter with an offer detailing the reason with analysis, or call and make a verbal offer?
My analysis is as follows (The spreadsheet might be familiar if you've read Introduction to Real Estate Deal Analysis):
I think it makes good sense to offer $200,000, but from the tax records, I know he paid $370,000 back in 2003. The "zestimate" is $237,000, and although I know that's not always a good assessment, it seems pretty close based on the limited comps I see on the MLS.
If I had to guess at the response I'll get, it's something along the lines of "This seller is not motivated enough. Make your offer and then 20 more offers and one will stick." But, of course, I like to check in and see what those more experienced have to say.
Thanks!