Possible first deal

[Phillip Elliott]

Hey guys I'm a newbie looking for my first deal and I have stumbled across a foreclosure in my own neighborhood that has been on the market for 3 days. It is in a very nice neighborhood with good schools.
Details
Purchase price 179900
ARV 235000 based on comps
Tax assessment 208100
4br/2.5bath 1836sqft.
The house is owned by countrywide mortgage and doesn't need any repairs. I haven't contacted the bank to discuss purchase price that is just what it is currently listed for. I am looking at wholesaling this property. As I said earlier I am new and really don't know what i'm doing
THanks,
Phillip

[Jon Holdman]

If it needs no work, then whatever price it sells at is what its worth. Unless, that is, the bank has just made a serious error and underpriced it. If its truly worth $235K and is listed for $180K, then its too late. Its already sold. If not, then its not really worth $235K.

Is this a REO or a short sale?

I have seen banks price house low to generate multiple offers. In that case it might sell higher than the listing price.

If this really is a deal, then get it under contract and start looking for a buyer. Honestly, though if the price and value are correct, its not much of a deal. $180K is 77% of $235, and 70% is the usual target spread.

Is it occupied? If so, you can count on paint and carpets once its empty. Figure about $5K for that.