FSBO-Newbie Looking into Possible First Deal

[Mikki Johnson]

Hello BP Community:

I came across a FSBO in my area.

Asking $150k 3/2 with pool.

Willing to negotiate, but not interested in owner financing.

Currently has a tenant paying $1400.00 and stated that the tenant is willing to remain in the property.

I will be doing a walk-thru soon, but based on the Seller “it is more or less turn-key” and has been renovated thru the years.

After walk-thru will I should be able to ascertain how much will be needed in repair cost.

I have looked at the County tax assessors site:

Just Market Value $110k

Assessed Value $66,800

My first question is can someone explain the difference in the County information Just Market Value and Assessed Value, and how can I use this information in determining a "Comp" without the MLS?

My Second question, with the info from the other sites, has anyone found one over the other to be more in line with what the MLS might determine?

I’ve taken a look at these Internet sites on the property to try and get an overview of what the property should be worth:

Redfin $135k

Zillow $144k

Totalview $116k

My Third question, based on professional opinion, with the information provided could this possibly qualify as a wholesale deal and would a 70% ARV calculation work?

Hypothetical: ARV=$140k x70%-($5k minimal repair)-$7k assignment fee: Max Offer: $86k

I do understand that it would certainly come down to the Sellers level of motivation.

Any input on this would be greatly appreciated.

[Brandon M.]

Mikki, 

The assessed value is just the number the county uses to determine how much in taxes are owed (you are okay with that number being low!). Most counties here in Florida have some sort of "value" they post, based on homes that have sold recently in the area. It is not apples to apples, not even close, it usually just gives a rough number based on a per sq ft basis and does not take into account at all anything like a pool, upgrades, etc. I am not sure either of these numbers are very helpful in determining an accurate value without the use of MLS.

As for determining comps you will want to use whichever site can help you find recent sales as well as pictures so you can make as close to an apples to apples comparison as possible. 

Do you know if the owner is willing to compensate a buyer's agent if the buyer brings one? You might do best connecting with a realtor in your area that can help you with the comps on MLS so you can get the most accurate ARV possible.

As you know, you make (or lose) money when you buy so you DO NOT want to offer more than the house is truly worth.