I’ve Analyzed It But Maybe I Missed Something

8 Replies

Hello BP,

I'm needing a little advice. I went and looked at a home yesterday (to wholesale). It is a 1969 SFR, 950 sqft. The previous owners have basically remodeled the home except for a few finishing touches (kitchen remodel and bath tub still need to be put in) and the HVAC system (it has not be put in (they have all of the materials, just haven't put it in)). It's a 3/1 one story home.

They are asking $59k ”As-Is.”

I wasn't able to find any standard comps (.5 mile radius, time sold, same beds/baths, etc.) but I used Redfin and they had similar homes that had sold in the area. I used 3 of those to get my ARV and it came out to $37k.

This has me a little leary but I know I have room to negotiate, my question is how much would it cost to put in an HVAC system and do I go with the ARV or negotiate from the 59k(I would start at 44k to account for the finishing touches that still need to be done)

Thanks in advance for any advice.

Do you understand that ARV means after repair value. You state the after repair value is $37,000? Why would you offer anything on the property? Unless you mislisted the ARV.

Originally posted by @Shabreya Bangura :

@Brian Pulaski Hi Brian, thanks for chiming in! I do understand that ARV means after repair value. Because there were no nearby "standard comps" I was wondering if I was possibly missing something.

Again, thanks for chiming in.

Unless houses are very very cheap I assume you were simply missing some real comps. If it is $37k, then you don’t have a deal.

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