OfflineHi DG Family,
I came across a nice deal in a nice area of my town and a motivated seller who has a property that is in probate. The property with no mortgage, was left to the seller by a relative, now deceased. The property based on my numbers from solds in the last 6 months is valued over $200k ($234,432). Now, can I go in and make an offer on this property while it is in probate? Based on Matt's offer formula the spread is great based on the asking price. The numbers I used for comps based on the latest solds were as follows:
Address Price Sold On SqFt Price/SqFt Bed Bath Built Options
Holland Ave $125,000 06/18/2014 1695 $74 3 2.0 1950
Wactor St $180,000 04/15/2014 1000 $180 3 1.0 1969
Candlelite Dr $180,000 04/15/2014 1118 $161 3 1.0 1972
Camino Ct $180,000 04/15/2014 1008 $179 3 1.0 1973
Hileah Dr $180,000 04/15/2014 1144 $157 4 1.5 1970
Shorecrest Dr $180,000 04/15/2014 1144 $157 4 1.5 1971
Hampton Trace Ln $260,000 09/05/2014 2615 $99 4 3.0 1979
Kilbourne Rd $173,000 10/15/2014 1350 $128 2 2.0 1948
Based on these numbers I wanted to be sure that I was doing my comps right. I used all 8 solds to arrive at my market value for the property that I want to offer on. The square footage for the property is 1776 sqft. Am I right or at least in the ball park? Just need some help. I want to ensure that I am being fair to all parties involved. Make it a win-win for all. By the way, I want to put this property under contract and assign it to a cash buyer/investor. That is my plan.
Thank you all,
fdwilder
"All Things Are Possible Through Christ Who Strengthens Me"
yes you make offer after you run the numbers.
Remember repair cost and calculate them into offer and your fee.
Do you have buyers?
Seller asking price?
Are Comps near this house?
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
reinvestor42,
Thanks...the asking price is $149,900 (I know a no brainer) No repairs needed. Just some pressure washing around car port area. This house was well kept and is move in ready. Yes, I have buyers. One in particular is looking for properties(sfh, duplexes, triplexes, quads) in that area of town up to $300k and can close in 7-10 days cash. The area is a hotbed for student rental. The student enrollment is growing at the local university and their is a student housing shortage. All comps within a block to 2 miles of this house. I drive for dollars in this area and have a few more properties to look at. I am in contact with other sellers in this area and working on getting offers out to them. There are a lot of fsbo signs in the area. Trying to build my cash reserves to start pursuing the reo's/hud properties in the area. I have some really good re agents to work with. Found them using Matt's techniques for finding re agents. I don't want to mess this up...so yes..there is some fear here but I can get over it. Just need some guidance if you would be so kind. It is appreciated. I am a fair person and want to be fair in all my dealings..with sellers and buyers alike. Make it a win for all parties involved.
fdwilder
"All Things Are Possible Through Christ Who Strengthens Me"
My only concern is that the house with the closest SF (first one on your list) went for only $125k. Have you driven by that house to see why it sold so low? If you go off the most recent sale from 10/15/14, the numbers are much better.
Based on the average of all comps, $149k seems reasonable. So $149.9k * 70% - repairs ($0) - your profit = max offer. So $105k less you profit is what you should offer.
Hope that helps and keep us in the loop!
- Tom
As Tom stated the comps + any/all updates (repairs) since the house are built from 1940-1980.
Being that its in the Heart of student housing is BIG !! (Parents pay for the 4 yr party))
Take the sq ft price from nearest comps and average them, then use That figure for the sq ft of deal. Keep in mind updates of plumbing, electrical, roof, heat/air, etc. and compare to other comps.
If your Buyer is wanting buy/hold/rent, this may be it. Do you know the rent rates there? Most buy/hold want 1.5% of purchase or MORE
EX: Purch $100,000 x 1.5% = 1500 Rent per month. NO REPAIRS or other cost.
DON'T be Ruthless and GREEDY... HELP People!
http://www.deangraziosi.com/real-estate-forums/local-networking-and-disc...
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools