Asking Price vs. Fair Market Value

You need to find motivated sellers. Most FSBO's are usually asking more than the the house is worth...they have the "telephone numbers" from 2005/2006
in their heads or that's what they need to get out of the property just to break out even.
Find the motivated sellers ... divorce; probate/estate; foreclosure; pre-foreclosure; by using ads, flyers, bandit signs; mailers; even try a sandwich lease option & just take over payments & get a tenant buyer in the property.
You can finds buyers for investors like us that have properties for sale
and collect a finders/bird dog fee.
We also live in Fl. & despite all the foreclosures it isn't as easy as some parts of the country to find killer deal properties. That's why some DGer's look for houses outside their areas/states.

The MARKET determines FMV not zillow or any website. If these houses are actively selling at this price than that is what FMV is. Check with a realtor for sold comps as close as possible to the properties in question. Type of house, number of beds and baths the same, with in 1/4 mile if possible. Go out to a mile but be careful, area values can change block to block! Find out how many are for sale in the area now, what they are listed for and how long they have been on the market. Can you see why you need this information in order to make a buying decision and how much to offer?
Do these houses need any repair or updating? How can you make an offer if you don't know this?

If it turns out these people are actually 30% over FMV and won't come down, look elsewhere.

Hope this helps and makes sense!
Michael Mangham
MD Home Acquisitions LLC

Thanks for the responses guys. I found Totalview's estimate to be in the same ballpark as the other estimate sites. I'm just assuming that when I lock a property up, the investors I'm trying to assign them to will look at the same sites to determine if it is a good deal.

If I went by those sites when I buy a property I would have LOST money.
Any investor that knows what he is doing runs comps sold in the last 90 days, checks what is for sale now and how long they are on the market. These comps are done on the same type of house (ranch, tri level etc)and as close to the property of interest as possible. Question: how can you determine the rehab or remodel needed from a website? Or the guy next door is a trash collector or has junk cars in the greasy driveway? Or the street is busy and noisy? My advise is NEVER base your final buying decision on a website PLEASE! Either do the research your self or have some one you trust do it for you.

Good Luck,
Michael Mangham
MD Home Acquisitions LLC

I agree with Michael, those websites can give you a place to start as far as some kind of value, but all those things he stated above like 90 sold
comps, rehab costs, neighborhoods & even construction style of the home are what gives you the "Market" price. We had a home in NJ that was a 6500 sq ft contemporary on 3 ac. & found that everyone wanted center-hall colonials, because of this we had to sell it for $ 300,000 less than other comp. size/area houses. Make sure you do your homework when comparing & searching for the value.

Thanks again for all the responses. Let me ask another couple of questions if you don't mind. How difficult is it to make an offer on a property if the seller is using a realtor? Is it impossible or just more difficult? When a seller and I agree on a deal, should we sign just one contract or do both the seller and I need to have copy? Thanks in advance for any help.

Stevo

It is not difficult at all, you must make the offer through a realtor if your buyer has a sighed linting agreement with a realtor.

I would want a copy of anything I sign.

Good luck
Michael Mangham
MD Home Acquisitions LLC

Sorry about that typo

Thanks Michael. Do you think I should I let a seller know that my intent is to assign the contract or should I not volunteer that info? I know Dean says in his book that you don't have to state your intent to assign but I might feel a little uncomfortable with that. I dunno, that's just me.

Steve

I always fully disclose my intentions up front. Mr. Seller, I may purchase this house my self or I may assign the contract to one of my fellow buyers for a profit, this is what I do for a living. Either way you will be paid the price we have agreed on at the closing date we agree on.

Michael Mangham
MD Home Acquisitions LLC

ZILLOW TOTALVIEWREALESTATE ETC... NEVER WORK FOR ME THEY SAY NO DATA AVAILABLE AND ITS BECAUSE I LIVE IN A SMALL TOWN SO THEY ARE A WASTE OF MY TIME.

Michael, what is their reaction to that usually. Do you tell them that you will be able to close quickly? I see you've formed your own LLC, how has business been for you? Thanks Michael for letting me pick your brain. Reading a couple of books is one thing , but to discuss it with someone who is out there doing it is another.

Steve