Updated almost 13 years ago on . Most recent reply
Short Sale-Offer Price
I am interested in making an offer to purchase a house via short sale. The house is in pre-foreclosure. I am trying to figure out my offer price. The house foreclosure est. is 52000 and the zestimate on Zillow.com is 87000. My realtor suggested an offer of 50000. I think the house needs 20000 worth of work. How do I decide on an offer price and do I need more information. This is my first real estate investment- my goal is to fix and flip. Thanks for time- Hadlock
Most Popular Reply
Dan,
The formula that most investors use is:
Max offer = 65% x Market Value - Repairs
Max Offer = .65*$90K - $20K
max Offer = $38.5K
I would offer $25K as a starting offer.