This is a no brainer FIX and FLIP. Am I right? Not a bad area. 80K owed to the bank per the county assessors website. Asking price of 129K. Comps between 210 and 370K.
Used the flip calculator with conservative numbers and this deal is screaming $$$$ at me. Am I missing something?
Im a Realtor in Marlborough and I flip houses. I know the house your talking about. My target sale price would be $299K if I were doing the numbers. You may get $325K but $299K it would sell quick. I did a quick look on masslandrecords dot com and in 2004 they mortgaged $185K then in 2005 -$53K and in 2006 -$80K. The loans from 2005 and 2006 look to have been paid off this past year so you'd only be dealing with the first mortgage of $185K from 13 years ago. I have listed short sales in the past. In my experience the bank won't even entertain a short sale until there is an offer on the table. Thats why some agents price the house low so they can get the ball rolling with the bank. If you submit a full price offer the bank will then get BPO's done and thats what they will base their value at. So in the end the bank may want $160K for the house and if no one offers that then they will foreclose and sell it on their own.
Also on the listing it says the buyer has to pay $5,000 towards negotiating fees and that money can't be financed. I hate when agents do this. Things may have changed but when I listed short sales I had the bank pay the sellers attorney fees who was doing the negotiating.
I would do your numbers and submit an offer at what works for you.
At that purchase price it looks like a great deal. $150K seems like a lot for interior reno. I think once you get inside you'll have a better idea of your rehab budget and a more precise analysis of the property, and potentially more profit in the end.
@Michael Miele@Steve Milford I looked at the place today. I took a bunch of videos, that I can't post, only photos. The place is an old DIVE!! I cannot see anyone paying the list price. It needs a NEW everything! With an ARV of 300K, I will be curious to know what it ends up selling for.
In my opinion this house will sell over asking. In the past 36 months there has only been 1 SFR that sold under $100K and it sold for 97,500 and was a 2 bedroom with no off street parking. If I were you I'd put my best offer in and see what happens. Good Luck.
@Michael Brown Frankly, you're working in a vacuum of ignorance here......A short sale means they certainly owe more than the asking price, not $80k. They are are trying to generate an offer in order to start the short sale process with the bank. You don't see mention of the $5k negotiation fee because it, along with other information such as the "buyer packet", are in the MLS only accessible to agents. You have no idea what price the bank will accept, as they will be looking for close to what They determine the house to be worth as is, and that rarely fits into the "70% of ARV minus repairs" model. If you have an agent, they need to see what else is in the buyer packet, and other relevant info., along with talking to the listing agent as they know what to ask. You'll need to show the ability to buy, in your name, before they will entertain an offer from you.
@Wayne Brooks Yeah. You must've skipped a bunch of posts. They owe 185K. I am not making an offer. but if I was, it would be in the neighborhood of 50% of the listing price, as I saw the place today, and it was an absolute dive.