OfflineI have a property, which list for $314,000 .... comps via Zillow.com show between $275,000 - $350,000 over the last 6 mos.. I maybe able to secure the property for approx. $275,000, after listing on the market for nearly a year!!!
Q.#1.... Is there enough margin to wholesale the property, if the owners owe less than the purchase price? Q.#2... how should I approach the listing agent on the property and should I offer less than $275,000?
Q.#3.... what financing source would be best under the circumstances (i.e., traditional, owner financing, cash buyer, HML, etc)? Q#4.... what formula should I use to determine my purchase price? Q.#5.... would I make more of a profit, if I were to "assign" the property to an end-buyer?
Thanks for your help!!
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Need to narrow the comps range a lot. But it would seem not.
You want to be buying this for around 150-175K.
You want to be buying this for around 150-175K.
Thanks for your reply.... I initially felt the same, but at nearly 48% LTV it would seem somewhat difficult? I would rather stay around 60%-65% LTV on the purchase price.... However, when I reviewed the property tax records they showed last years assessment at: $334,000.... Zillow showed an average selling price of comparable homes at: $343,000 over the last 6 mos.
Again, their listing price is: $314,000, however this home spent nearly a year on the market so far.... Buying this home at: $175,000 would put me at a 56% LTV ($175,000 divided by $314,000 = 56%).... It's worth asking, the only thing the agent/seller can say is...NO!!! Thanks, pls reply ....
Tax records are meaningless. Assessors are government hacks. All but useless.
zillow is a decent starting point.
If this home has been listed for 314K for a year and has not sold then all we know is that it is worth LESS thatn 314K. And really quite a bit less because if someone thought it was worth say 310 then that 4K would have gotten done somehow.
It all depends on what you need/want TO DO with the house. If you want to live in it and are happy at 65% of FMV then find out what FMV is and offer around 60% of that (room to negotiate up).
But Im not buying anything at 65% of FMV in this market. WAY too pricey.
From what I have seen in my area. Most houses have dropped around 100k in value.
zillow is a decent starting point.
If this home has been listed for 314K for a year and has not sold then all we know is that it is worth LESS thatn 314K. And really quite a bit less because if someone thought it was worth say 310 then that 4K would have gotten done somehow.
It all depends on what you need/want TO DO with the house. If you want to live in it and are happy at 65% of FMV then find out what FMV is and offer around 60% of that (room to negotiate up).
But Im not buying anything at 65% of FMV in this market. WAY too pricey.
Well, I do agree with on one point, which is 65% FMV is WAY too pricey. However, I am talking about very HIGH-end homes.... In a very expensive community.... It appears to me the home is NOT worth $314,000 or else a buyer would have paid such!!! My intentions would be to "assign" the property over to an "end-buyer." I don't have any desire to live in the home. I was hoping to secure the property at approx. $175,000-$180,000 and then load it off to an investor.
Well, I am meeting with a potential partner (RE agent) and I plan to discuss the matter with her. Thanks!
Do not just go by what Zillow says. Look at the comps on zillow, but also look it up on diff. sites. Try Trulia, they are very good also.
This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams
Bruce Springsteen
Thanks for the advice... I plan to utilize other sites as well!!