OfflineI seen a potential property that I want to put under contract. Its a 660 sq ft single family home thats listed at 90,000. The area im looking at is active. I didnt see the house interior but the exterior dont look that bad at all, and its the cheapest house on the block. The thing that scares me is that its been on zillow for 440 days. There must be something wrong if nobody is buying this property. The house has a 150,000 ARV. Even when you caluculate the Maximum offer the house still cost less that what I will offer, unless im calculating the repairs wrong. If I make an offer on the house where should my offer be at?
__________________
There's not much info to go on, but you can always try Matt Larson's method and offer 40%-50% of the ARV. Once you lock it down, estimate the actual cost of repairs and if it's more than you estimated, renegotiate with the seller.
If it's been on the market for many days, the seller is probably going to be highly motivated.
Good luck!
In Christ alone, I place my trust.
If you haven't seen the interior, there is the possibility of major problems that other people have seen which is why it hasn't sold yet. Make sure you check it all out.
Hi supreme,
Looks like a house listed for over a year would be a motivated seller looking to sell. This house may not be the case. I have seen where you can take the 90k and minus 15% for real estate fees. Brings you to 76,500 minus your fee 5 10 or 15k minus repairs. This offer may be 45K. If you decide to make an offer put in your contract a clause for home inspection. If it doesn't pass your inspection for any reason you can void the contract. Or a clause for partners approval.
Good Luck.