OfflineARV 505, List 375K, I'm considering an Offer 330K It's a short sale. It's been on the market almost two years. It needs a ton of work including water damage repair. I was not allowed to see several rooms because the rooms were locked and 20 people live there. I went to the Dep. Building and Safety to check on permits, it appears everything is up to snuff permit wise. However, I don't know what's going on in some of the rooms. I heard there may be kitchens and bathrooms.
I'm wondering if I offer 330K which is about 65% of the ARV is the right place to start? 70% of ARV is 353K. It's in Los Angeles. I appreciate your comments.
Thanks you,
Greg
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I never do SS, but in LA most props end up going at about 80%. I usually start offering at 70. Then if it is accepted, I can go in and assess repairs and adjust if need be.
Karen
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Describing the property and living situation, I think 330 is too high. You can always come up on your offer.
Do you have an estimate on repair costs? that is really what is going to matter because it looks like it already has good equity but if the repairs are going to be outrageous then that might be too high.
If you can be more solid on what it will cost that will tell you if your offer is too high or just right.
Thanks this is the formula I used to determine my offer;
ARV 505K
Holding/ Closing/ Realtor Costs – 15%
429K
Repairs - 60K
369K
My Fee 10K
Partners Fee - 30K
Offer 329K
I'm not real good at estimating repair costs. It's a ballpark figure. If the offer is accepted I will get the property under contract and bring my buyer over to check it out. He'll decided if the repair estimate is accurate. I can adjust my offer as Karen suggested. I appreciate your comments and suggestions.
Thank you,
Greg