worth looking at or not?

Question

so I found a seller who was divorced last year and needs to sell there multi-family home.  im running comps on on the property and the taxes check out but what she wants and what the estimated values is way off. county records assess the value as $134700. not zillow and trulia numbers are way off from each other and the county records value. zillows at $187143 an trulia  is at $151400.

my comps are coming in lower than what she's asking for which is 187,649. she said a realtor has helped her come up with this number. the price is negotiable but I doubt she will move much.does anyone think this is a deal worth working. I go to see the house tomorrow at 11am. im not looking to waist my time since I have other leads to follow up on as im playing catch up as it is.

Nick Katzer · Answer

Maybe you can pay her price if she can deal with your terms. Ask her to carry the loan at say 4.5% interest with a balloon in say 3 to five years. The value will certainly be up by then and you should have some equity.

Shequann Burrwell · Answer

I can't wholesale it if I ask her to carry the loan. Does it matter if she still has a mortgage to pay off.

Michaela G. · Answer

Another thing to keep in mind is that she's selling due to divorce, which makes me think that she'll have to pay of her ex. And you'll likely need his signature as well.

Shequann Burrwell · Answer

Well I'm looking to wholesale the property. I was noting that zillow and trulia are  showing very different estimates. The comps I ran came in at well below what's she was asking a little over 50000 below. For a 3 family in the area I think she's over priced the house with what ever Realtor she talked to.  Im just not sure if it's worth my time to try talking her down 50000.

Michaela G. · Answer

Neither one of those values are valid comps. See what zillow gives you on recent sales and compare the type of properties with this one. That'll give you a better picture. Zillow gives you 2 years back or more, so make sure these are recent sales. if you have www.redfin.com in your area, check with them.

Also, look at the deal itself - how many units? What are the rents for each unit? Are tenants paying all utilities? Are you in the area and want to self-manage or will you need a PM?

worth looking at or not?

Most Popular Reply