I have a home that I am going to look at tomorrow. I have bought 2 other homes on the street over from it and so I know the area/market well. I want to take a contract and get it signed while I am there.
I normally let them give me a number and work down from there based off of work needed.
The seller had a family member living in the house who went into hospice. The home is owned free and clear. However they can't afford to pay the utilities, taxes, and insurance. It is a 3/1.5 with 1500 sqft. It is built in 1917. It also has a lot on either side of it that come with it. ($$$)
Seller does not know what they would like to get out of it. My plan is to go off of what I paid for the other homes (both distressed) in the area and go from there.
Objection one: I really don't know what it's worth. I need to do some research. How do you approach that scenario for an on the spot close? I normally get told they will look at zillow and let me know what they think its worth. Which we all know can be painfully inaccurate.
run it thru redfin.com .Then use your own comps and any recent sales in neighborhood . good luck
My two cents? Sounds like a great prospect!
I guess it depends on your exit strategy. If your intent was to wholesale, that would be one number. If it was buy and hold, then another, etc.
Generally, when I am faced with the scenario like the one you presented, I would personally get my Realtor® (of course, I am one LOL) to get some comparables for ALL the homes that have sold in the past six months in that particular subdivision. That will take your Realtor® about 10 minutes.
Then I would look at all the homes that are currently on the market, and have sold in the past 6 months and pick out three actives and three solds that most closely fit the main house. (The extra lots are a side issue)
When meeting with the Seller, I would use a benefits based presentation, along with an education of what the true value of it is based on the most active comps you could find, as well as the most relevant sold comparables that mattered. (your two distressed ones would be included)
In the presentation, simply outline that if she put it on MLS it might generate x. But your all cash offer paying her closing costs, no commissions, taking it as is, and closing when she wants is a value in and of itself.
When they tell you "We will look at Zillow and tell you what we think it's worth" simply reply, "That's no problem... The MLS data is what the appraiser uses. "
Hope that helps!
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