OfflineHello, I have 2 realtors and I started submitting offers in my hometown at around 40% off FMV. Not so many bites!! The homes I targeted are all between $400,000-$700,000 asking price for a 3 bed 2 bath.
For sellers, 40% off of an $100,000 house is an easier pill to swallow than 40% off of a $500,000. $40,000 vs $200,000.
So i figure i have to change locations to one that is less desirable, and has more highly motivated sellers.
And/or offer less of a discount the higher the price of the house.
Can anyone offer advice from experience or knowledge about Los Angeles/Long Beach area on how much to discount expensive properties???
"We are what we believe we are.....
Only those who will risk going too far can possibly find out how far one can go...."
-CSL
Congratulations on taking action with real estate. Some markets are pricey and it may be a numbers game with making a lot of offers. You may want to contact relators in the local area and ask them to run comps of all homes that has sold in your target interest area for say the past 3 to 6 months.
This could give you an idea of what homes have been selling for and the average amount the homes were on the market. Try to go in areas that are close but the prices may work with better margins for you. The key is trying to find motivated sellers such as REOs (bank owned), short sales, probate sales, second homes, or homes that have been on the market for a large number of days. I hope this helps. Good luck with real estate investing. Believe and Achieve!
- Joe
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