Updated about 8 years ago on . Most recent reply
Figuring out what to offer
Hi all
I am interested in putting an offer on a property. The house is a 2 family house. looking at comparable houses in the area it should be worth 850k after repairs.
The problem is the interior of the house is a nightmare. I had my contractor that I work with regularly take a look at it and he's saying its a gut job which will cost 220k. There were a lot of illegal modifications done in the house and would require several inspections and scheduling with the coned to add meters takes a long time. He estimated 6 months worth of work.
Since this house is in such bad shape we will not be able to get a conventional loan for it so it will need to be a cash offer. I do not think there will be much competition. The asking price is 700k but there is no way I would offer that. I am trying to figure out what would be a good price to offer since I will have a lot of cash tied up in this deal and it will take a long time, I am also wondering if I should offer right away or wait for this house to sit on the market longer.
Thank you in advance