I found a comp that sold for half of my ARV!
I live in Palm Coast Florida and I got a call from a bandit sign from woman in preforeclosure. She got a loan for the house in 1999 for $63,000 and still owes $55,000. ( She has actually paid over $120,000 since her loan almost 20 years ago. High interest rate, penalties on top of penalties. ) There are no liens and no second mortgages. She really wants to get out of the house so I contacted her borrower for a pay off less than what she owes. The borrower said to write her an offer and email it in then they will send an appraiser. If the offer is less than the appraised value then she will notify the owner and the offer will have to be renegotiated. If the offer is higher than the appraised value then they will accept the offer and that will be the settlement to free her of her mortgage, get her out of foreclosure and she can pocket the extra cash. So I wrote the owner an offer of $10,000 which she accepted and the bank will most likely reject, send an appraiser out and we could renegotiate. I estimated the property has a ARV of $110,000 to $120,000 with about $30,000 repairs (conservative). 1,050 SF. The only thing is 3 houses down, a house that's a little bigger ( 1,200SF) and in better shape sold for $50,000 in 11/16/2016. The average house sold in this area at this size was $120,000. Most recent, 2 blocks back was $110,000. The average listing price for this size in this area is $130,000 for the same size same style. The house that sold for $50,000 might scare of buyers I am trying to wholesale this property to. What do you think? Please give some insight.