Updated over 8 years ago on . Most recent reply
Question Regarding Comps and TMV on REO Properties
Hey guys, pretty new here and just had a couple questions, hopefully someone with more knowledge can help! I am in real estate and have decided to flip homes. I already have a team for rehabbing/remodeling and flipping. I can do a rehab/remodel real cheap, but my question is, right now I'm looking at REO properties for buying with a 20% down or even cash if it is less than 100k. I have looked at so many REOs near me in South Florida. I notice the banks are listing properties for basically the same as an average owner, even when it needs work! Last property I did, was purchased for 190k and comps were 240k none remodeled same style unit and sqft. Sold it for 258k, decent profit. But now, I see REO for 200k and comps are 200k, yet REO needs work...If comps come up same, would you low ball the bank?
Another property I was looking at bank selling for 119k, good area, and comps are 100-120k. True Market Value is 100k-120k as well, they list at a higher price. And what if you do not see any remodel comps? The 120k recent comp is liveable, older kitchen, older everything, but none remodeled. How much would you estimate the remodel will up the price?
Just wondering these things as in my last one, maybe I was lucky, not sure if there are other options to look at that I do not know, I'm still new to the MLS, but know how to work it, unless there are other things realtors look for, any help is appreciated when coming at making a decision such as this one! And I have looked at over 50 properties in South Florida and all banks list the same at the higher end of the TMV listed on MLS. Appreciate any help!