Property Manager · Syracuse, NY · Member since 2016 · 601 posts · 384 votes
Hey guys, I have a home owner looking to sell a property. He is asking 95k but the house is completely gutted. He has all new windows in the property but not installed. We do all of the work ourselves so our rehab costs are pretty low but here is where the confusion comes in.
The house backs up to new development in a town that is highly desireable by high income individuals. The average house price is 300k-400k. My estimated ARV Was 190k but an experienced agent in the area who has 200 buy and holds said he isn't so sure the nicer houses would increase the value of the one I want to buy. He suggested the ARV would only be 130k.
We tried to offer the home owner 72k which would make our 70% formula work but he wasn't going for it. Obviously the prices on the photo below are zillow prices and not 100% accurate. The green highlight is the house we are interested in buying. We could buy all high end stuff in, new roof, fix the landscaping, nice trim and crown molding, nice stainless kitchen, new windows, new drywall throughout, etc.
In your opinion and experience, do you think this house could fetch more than 130k? Thanks for your help in advance.
I do not know the area but the map shows that the target lot is not and cannot be part of the sub. It does look like it has a fair amount of frontage. Do you know if the lot could be split and two houses built? Would the existing house have to be torn down for that to occur?