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Updated over 14 years ago on . Most recent reply

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Aaron R
  • Real Estate Investor
  • Spokane, WA
4
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28
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What's the max you will pay per sqft.

Aaron R
  • Real Estate Investor
  • Spokane, WA
Posted

Just wondering?

I have been making offers on and going right around $50 a sqft.

Is there some way you try to find the right price for the offer?

The properties are all REO's and some will be cash at closing or trans-finance.

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J Scott
  • Investor
  • Sarasota, FL
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J Scott
  • Investor
  • Sarasota, FL
ModeratorReplied

Price per square foot is not the best way to value a residential property. Instead, you should be looking at comparable properties within a half-mile to a mile radius that have been sold in the previous six months. That will be a better indicator of the value of your property.

Once you have the value, you can subtract out your costs (rehab, holding, purchase, selling) and your desired amount of equity/profit to determine a reasonable offer price.

There has been plenty written here about how to do this...keep reading these forums and you're sure to learn a lot...

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