HELP!! THIS IS MY DEAL STRUCTURE

6 Replies

I am new in this and would like any input possible....

Single Family 4/2 Sq Ft. 1170
Built 1971
Good Condition
Asking: 199k
Market Value: 127k JAN 2014 (?) county site
1. Should I use this being it's off the county's site otherwise I got 153k on another site..

Comps: 180k,180k,182k Last 3-6 Months
ASP: 180k average sale
Repairs- $12k est based on sqft
Fee: 10k

1st offer-MAO= ASP x .70 - repair - fee
Average Sale Price

180,000 x .70 - 12000 - 10,000= 104k
180,000 x .65 - 12,000 - 10,000 = 95k
180,000 x .60 - 12,000 - 10,000=86k
180,000 x .55 - 12,000 - 10,000 =77k
180,000 x .50 - 12,000 - 10,000 =68k

Where should I begin my offer ? Any help much appreciated

At first glance without knowing your market, and if numbers are reliable, it looks like $104k is your max offer so maybe like a soft pass at 80-85. Less if you think you can get away with it. Remember we can move up a whole lot easier than we can negotiate down, and if we offend them we should be following up anyways. Let them live with an $80k offer for a few weeks, they might start feeling that they put one over on you at $95k and then you might have yourself a $20k spread.

And then again it might never be a deal. "Next!"

I would seriously never trust property values on county websites. They are about as reliable as zestimates on zillow. Also, I would never estimate a renovation budget based on square footage. Has your contractor given you a bid, or has an agent at least confirmed your numbers? Just making sure this would be a good deal for you.

Jared L. I have not consulted a contractor ...and I've looked up the comps myself based on what I have learned..I have verified findings with a realtor at this point.. .I haven't heard of many investors using a contractor for estimates to wholesale ...at this point I'm really starting fresh and educating myself as I go...I have a thread I'm reading on estimates right now although it seems geared towards rehabbing its great info

Jared L. I have not consulted a contractor ...and I've looked up the comps myself based on what I have learned..I have not verified findings with a realtor at this point...I haven't heard of many investors using a contractor for estimates to wholesale ..is this something you do? at this point I'm really starting fresh and educating myself as I go...I have a thread I'm reading on estimates right now although it seems geared towards rehabbing its great info