OfflineHey there,
I found a buyer who is looking for a 3 bed 1 bath minimum SFH with RV access and they have a budget of $140k. Unfortunately they just mad an offer with their real estate agent on a house they found and it was accepted now they are just waiting for final approval for the loan which might take 2 weeks.
Anyway I though I might as well still keep looking in case their deal doesn't go through and if not just find another buyer. As I was going through todays paper I found the following add in the classifieds:
"$205,000 Motivated Seller
(address) Remodeled! 4+2,
1/2 acre Horse Property~ RV
acc, encl'd yard (phone number)"
I typed in the address and noticed that the virtual appraisal was for only $133,088 and with 1319 SqFt.
Since there is such a big difference in price and they mentioned they remodeled I though maybe they added some square footage to the house!?!?
I haven't called them yet and was wondering what I should ask the seller?
I thought I should ask them about the size of the house and what features the house has.
Should I tell them about what I found out online?
What other questions should I ask?
Also how would I negotiate a price below FMV? After what I found online I think I could definatly get the house for just below FMV. How do I argue my case to get it for 50% of FMV I think at most I would offer 30% off FMV.
Should I just make an offer on the 2nd or maybe 3rd call and stick to it?
PS: The tax assessment is $131,900 and was assessed in 2009
Do you have the information you need to actually make an offer that has a chance of being accepted?
The owner doe not seem motivated with it priced at $205,000
Do you KNOW what comps are selling for and how many are currently for sale and how long they are on the market before they sell? That is how you determine FMV.
not some website or tax assessment. The websites give a rough idea, but there is no way they show neighborhood trends. This you must know. Be sure and compare houses just like the one you are looking at as close to your property as possible.
Then you must know what the rehab or remodel costs are if any. You need a licensed contractor (3) to give you an estimate.
Then you need to determine your exit strategy. (how you make your money) Rent it, fix and flip, wholesale.
Then you are ready to make an educated offer! No need to argue your case, it is just here is my offer, take it or leave it, then on to the next deal.
Hope this helps,
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
As far as exit strategy is concerned I would definitely use either IEE or assignment. As I am a college student I have absolutely no money and know no one that I could ask for some.
With comps I'm not really sure if I can use what totalviewrealestate.com came up with because none of them have the same amount of bedrooms or square footage is way of.
The more I look at it the more I feel like I need to find my RE agent before I even consider putting in an offer. I plan on finding one tomorrow.