OfflineI have a possible deal where the seller is asking $190k for a 3bed/2bth home in a good part of the city.there have been 11 sales in the past year, 5 in the last 6 months,with an average sale of $233,150. Rent is in the range of $1200. And from what I can see the propert doesn't need to much work, probably newer appliances, a touch up of paint(im goin in for another look with my contractor).
Now if it is REO, I'm think Land Trust, so I can assign rights over. If not then just and/or assigns. But I want to know what is a suggestion of an offer I should make.
Thanks for your help family.
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BryanSr,
A suggested offer amount on on assignment of contract would depend on the buyers criteria on your buyers list. If your focus is assignment of contract your first order of business should be to build a buyers list. Your buyers will have different criteria. Some may be only interested in deals that are say 65% or less of FMV; others may look at a minimum profit amount ie 20,000+.
The quick formula for determining maximum purchase price is FMV-Costs=Max Purchase Price. The costs you want to consider are purchase costs(apx 3% of fmv,rehab costs, holding costs (utilities, taxes, mortgage pymnts), sales costs(if selling yourself apx 3%) Profit.
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Hi Byron,
Your offer price should be a formula that consist of comps in the past 6 months, repairs and your fee and your end buyers profit margin. What ever this totals it should start on the lower end because it takes alot more effort to price down than up. Continued success........Lubertha
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Get you comps in line for sure. Assigning a Reo could be a little sticky but I would check with the bank that is holding the prop. Keep posting, I want to follow up how it works out...Jan