I have a a motivated seller who is going to take highest bidder by Monday. 3 bed 2 bath 1500 square feet. Home is near an elementary, walking distance from grocery and parks. Home needs new roof, one bath completely re done and doesn’t have central air. The county has the home assessed at 120,000 for year of 2017 but owner is asking 73,000 on Zillow. What would be a fair offer all things considered.
Don't worry about what Zillow says or the county you need to look at comps and see what it would sell for in top dollar retail condition....once you find that number I'd offer 60-65% or even less in some cases
Comps using the mls?
If you plan to wholesale this to an investor you have a lot of homework to do very fast. What is the end product ARV? What will it take to make this house look like the comps you pulled for the ARV? Of the house I sold listed for sale now, why are other investors not buying it, and how are you going to buy it and then sell it for more to people who have probably already passed the deal up? Are you planning to/able to buy or do you just want to market to investors and if you don't find any, back out of the deal? Will the seller know you are wholesaling it or no?
I know ARV from what the surrounding homes were sold for. Completely updated surrounding homes 130. Homes being sold as is 100. The house is listed for sale for 60% of the ARV but needs completely new roof, bathroom overhaul, paint, updated fixtures, landscaping. Other investors have seen the product as is with a 73000 dollar price tag. I don't. I want to bring the seller down so my investor will be looking at 30000 profit. I just wanted various input just in case I was missing something from more seasoned investors like yourselves.
60% of ARV is only a good starting point. Then the cost of repairs needs to be deducted which could easily be $20k from your description. Personally, at anything over $55k I probably would pass.