OfflineI found this REO property: SFR $59,000 3 Bed/2 bath, 1,277 sq. ft.
Potential equity: $54,134. Zestimate $73,300. bank is selling as-is. the property has an illegal patio either needs a permit or tear down. (of course there are some more work needed to be done too! I haven't seen the house sticking to the rule of not seeing the house until my offer is accepted)
I offered $28,500. my agent couldn't believe what she heard and asked me twice, uttered "I think that's toooo low of an offer". I told her to go ahead and send in the offer, we can always raise the price if the bank reject us. She agreed but hasn't got back to me today as she promised.
So I have two questions for my veterans:
Did I scare my agent away? or was my offer outrageous?
This is officially my first offer!
( I thought I just used the formula of 65% - repairs -Commission -10% negotiation room with a nice looking number)
Never Give Up!!!
Sorry, the zestimate value is $71,860.
Never Give Up!!!
How long has it been on the market?
yesterday is history, tomorrow is a mystery, but today is a gift. That is why it is called the "present."
"Be not afraid of growing slowly; be afraid only of standing still"
My bad: 27 days on the market.
Never Give Up!!!
If the offer doesn't embarass you its not low enough. Sounds like a good offer if you have to ask if its too low. Did you calculate the costs of fixing the patio and the other repairs needed?
Potential equity: $54,134. Zestimate $73,300. bank is selling as-is. the property has an illegal patio either needs a permit or tear down. (of course there are some more work needed to be done too! I haven't seen the house sticking to the rule of not seeing the house until my offer is accepted)
I offered $28,500. my agent couldn't believe what she heard and asked me twice, uttered "I think that's toooo low of an offer". I told her to go ahead and send in the offer, we can always raise the price if the bank reject us. She agreed but hasn't got back to me today as she promised.
So I have two questions for my veterans:
Did I scare my agent away? or was my offer outrageous?
This is officially my first offer!
( I thought I just used the formula of 65% - repairs -Commission -10% negotiation room with a nice looking number)
Yes, thanks for all the reply i got. I set $10K for repair without knowing the actual condition. I asked my contractor, it seems doesn't cost much either to get a permit or tear down. My math based on
$71,806 - 65% = 46,709
- 10K repairs = 36,709
- 7K commission = 29,709
- closing cost = 28,500
-
Never Give Up!!!
has any one used foreclosure.com & what kind of success did you have.
thanks Matt B
You may want to start a forum of your own if you are going to stray from the original. This tends to complicate and make the thread responses unclear.
Lenee
www.allstarhouses.com
~Act successful! And you'll draw it to you.~
~Every achievement, big or small, begins in your mind. It starts as a thought.~
the subject I wont do that again
$71,806 - 65% = 46,709
- 10K repairs = 36,709
- 7K commission = 29,709
- closing cost = 28,500
-
Don't forget to leave yourself something into the deal. Here it would be about 10% max or so. You might consider getting more details on the repairs part - they could cost you more and you buyer may want them too so they can double check the accuracy of your numbers for future considerations in deals.
Otherwise, I'd say your numbers are fine and you can justify your offer to the bank if you need to. Don't get emotional about the house and raise your price (if needed) to satisfy the bank. You need to make sure that you get your fee.
The more thorough the question, the more thorough the answer.
Please fill out your profile with as much info as you're comfortable with.
Thanks.
My agent got back to me early morning with some questions. I have no answer to the followings, can someone help?
1. How long of an escrow period.
2. How long of an inspection period? Bank repos usually give 10 days.
3. How much of earnest money deposit. -- (my answer $1,000?)
4. You are not asking for any costs, right?
5. No home warranty or termite clearance, right?
Never Give Up!!!
How did you know that the equity was $54,000.00?
zestimate $113K. The REO report marketed this Way " Potential equity $54K". I was not quite sure about it.
My agent is resigned herself. I'm testing out the next one. Thank God there are so many I could choose until I find the right agent. Sometimes what people say might not be what they really wanna do! I know it's hard for me to start, we all need learning curve! I think what's important for me is to be nice and stay neutral. Never judge people!
Never Give Up!!!
CAn NEVER be counted on, especially here in Southern CA. We have older neighborhoods just around the corner from new neighborhoods, the comps used by zillow pass over freeways, major roads, and cities, and I have NEVER had one be accurate. Here is SoCal especially you need to calculate the ARV, and the mile circular radius that zillow used never works.
You want to start with mapping the property and then the comps. The comps that are within the SAME neighborhood come 1st. Then in similar neighborhoods, age and within 15% of the size of the property. You want to try within 3 months, but if there aren't accurate comps you can go out as far as 6 months. NEVER cross over freeways or from a neighborhood that is not of the same. Some special areas, such as homes in the hills require even more attention to the same area, because the hills can be less than 1/2 mile from other neighborhoods asa well.
Your best comps are within the 4 major roads or natural separations that the house is in. Zillow and totalview give you an IDEA, but never use them as the actual value. Hope this helps you some. Way to get out there and take action!
I don't think it was too low based on your numbers. You can always be more generous by only trying to make 1-2k on the deal instead of 7, but I say shoot for the stars!
Also, find a new Realtor if this ones already giving you grief over a low offer, or else this process is going to be like pulling teeth.
Dominic
Are you new? Check out my NEW and IMPROVED Guide for Beginners! http://deangraziosi.com/real-estate-forums/everything-else/128413/domini...
Here in So CA, 80% LTV-repairs-costs is considered a great deal to many investors here in Southern CA and it is easy to find buyers that will think that is an amazing deal. Its a whole 'nother ball game out here!
There are many investors willing to overpay (by our standards) for properties. And, if you find a great cashflowing property, They'll pay almost retail-repairs for the chance to have great cashflow out here. It really is a crazy environment here in Southern CA!
Thank you guys for all the great info. Especially Tammy, girl I have read most of your threads just to learn from you and get motivated and fun form your posting. Love it! I'm grateful to have you guys around to keep me going!
Blessings!
Li
Never Give Up!!!