Help! Motivated Seller Wants to Sell 8 Home "Parcel"

11 Replies

Hi!

I have a potential seller that is in failing health and wants to sell 8 homes that sit on about a 1/3 of an acre. All 6 are being rented right now, with 2 more on the site that are potential remodels. Rentals are bringing in $2800 per month, and the seller wants $275K for all 6 homes. I am just wondering how to figure out if this is a good deal or not, and if I should negotiate a lower price for all 6? The seller will definitely not sell each home separately. I did look up comps on what each home(1-2 bedrooms) in the area would be valued at separately and came up with about $15K each,so it looks like he is way over in price. I could really use some advice on how to structure this deal, if it is actually a deal at all. Thank You in advance!

...many apologies for the "6" typo...I meant "8!"...thank you!

Originally posted by @DJ Porter :
@Kimberly Martin where are these located? City, State.

Sorry, but PLEASE do not post city and state. This is NOT an advertisement for these properties.

@Jon Holdman Oops. Not in the marketplace. My fault.

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@Kimberly Martin

My best advice for dealing with an over priced seller is to show them comps. Show them what is selling and what is not. Compare selling their properties to selling a car. He would pay too much for a car. Just like no one will pay too much for a house.

Good luck.

@Kimberly Martin:

I am a newbie, and like to get involved in discussions like these so that I can learn and grow. Thus, from reading your question, it seems that the rental properties are the key to pricing these properties (in addition to pulling comps).

Can you see what the properties last sold for from the comps you are going by? I ask this because from the information you gave, the rent per each home will be low, and this may be an indicator that at the fair market value, they still will be making a profit, along with anyone else purchasing the homes at the new market value (since the last sale). Hope I am making sense...lol. I am learning.

If the SFR's are all on one parcel, each one will generally be worth less than a "comparable" SFR that sits on it's own property.

@Kimberly Martin:

Just to clear up my last post: I meant that since the rent per property is low, that may be an indicator that your seller might have paid a very low price for the properties, and the market value that you came up with in the comps could be a very good profit for the seller. So, that's why I was saying to look up what they last sold for.

If that scenario is not true, it may be the case that your seller has no equity and trying to drive the price up for a profit instead of a loss.

Thank you,

for the replies DJ and Teresa, but I think I might move on from this deal. The location of these homes is kind of far out of town, and it might be hard to sell these homes to a buyer.

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