Flipper/Rehabber · North Augusta, SC · Member since 2014 · 31 posts · 52 votes
My Business partner and I have a house under contract right now. The ARV is around $125,000 and were asking $88,000 it's a 4Br 2Ba Tri-Level home in a desirable area. After marketing to our Buyer's list we are finding that our buyers are saying that the house is in too good condition? Is this a result of not having enough people on our buyer's list or am I asking too much for the property? Any advice would be helpful. Thanks in advance
Landlord and Rehabber · Newton, MA · Member since 2010 · 2k+ posts · 877 votes
11y
If the "Problem" with the house is that it is in too good of shape why don't you try selling it to retail buyers/homeowners for close to the ARV?
If a property is in really good shape it is hard for investors to add value to resale. If your ARV is right (which is what I would question) basically they would incur 2 sets of closing costs to get a minimal profit.
If the numbers are right it is a nice deal for someone that wants to keep it as a home. It might be a good rental at that discount if the other numbers look good.
Landlord and Rehabber · Newton, MA · Member since 2010 · 2k+ posts · 877 votes
11y
If the "Problem" with the house is that it is in too good of shape why don't you try selling it to retail buyers/homeowners for close to the ARV?
If a property is in really good shape it is hard for investors to add value to resale. If your ARV is right (which is what I would question) basically they would incur 2 sets of closing costs to get a minimal profit.
If the numbers are right it is a nice deal for someone that wants to keep it as a home. It might be a good rental at that discount if the other numbers look good.
Residential Real Estate Agent · Groveland, FL · Member since 2012 · 504 posts · 395 votes
11y
Shaun is totally correct. Your Buyers are accustomed to buying at such a level, as to allow Value Add. Nothing wrong with that. This property just requires different buyers.
If it is truly that nice, I would just list it MLS.
Professional · Warren, MI · Member since 2014 · 13 posts · 13 votes
11y
We don't have any experience wholesaling to retail buyer's Would the Banks be OK with paying someone who doesn't own the property?
Hi Anthony,
I agree with Joseph, it sounds like your buyers would be different and I would connect with a real estate agent to list the property on the MLS. As far as the banks and trying to wholesale the property to a person with a Realtor, I'm not exactly sure about the laws in your state but I would just contact a Realtor and ask them or you can just use Transactional Funding or Private Money to get over the issue with the bank.