I've seen people say they've wholesaled a deal without physically seeing the property. How do you determine what you will sell the property for?
I understand the process of finding ARV and then multiplying that amount by .70 and subtracting repairs cost to determine the amount an end buyer will pay for the property. Is that a beginners thing? Do you sometimes throw a number out there and see who would be willing to pay that amount? I'm just trying to understand that process, because how do you determine the amount of repairs the property would need, if you never see it?
Look forward to your inputs, thanks!
Maybe what they mean is that one of their employees or partners saw the property, not them personally. In our business, for example, part of my job is to go inspect properties, and I always take 30-50 pictures. I send these on to my sons / partners, who come up with a target price, negotiate with sellers and buyers, etc.
I don't think we have a rigid formula for pricing, we just know what our buyers will pay for a certain type of house in a certain condition in a certain area. Of course they're going to look at the pictures too, and probably walk through the place. What they will pay reflects their idea of repair costs as done by them, which they can calculate more accurately than we ever could.
I think you have to move a lot of houses to get good at this. But really, people will tell you what your house is worth. If everyone wants it, it's too cheap. If no one wants it, it's too expensive.