I am using the tax assessors listings for comps, but bear with me. ( I know I should use realtor comps)
I know we usually do ARV x .7 - repairs = Offer.
I found a property that was on the MLS for a while. The listing is currently already at .7 of the ARV if the tax assessors values are reasonably comparable.
I was going to offer 20% under list price. Do you think they’ll bite, or should I just offer the list since it seems they already are offering it at .7 of ARV?
If they don’t accept 20% under, I’m going to ask for concessions.
You should offer what the property is worth to you. If that is ARV x 70% minus repairs, then offer that. Just because it is already listed at 70% doesn’t mean you have to offer less. You can, of course but there are a lot of stories out there of investors that lost deals because they tried offering less that they normally would have in situation and got beat out by someone else.
If the property is worth it’s list price, offer it, wrap up the deal and get paid. Don’t get greedy. Pigs get fed, hogs get slaughtered.
Well, thank you, the reply is appreciated. The area is in transition, but you are correct, many investors have been snatching up homes in this sector.
The property is currently about a C to C-, unless it has structural damage, I should be a great candidate… and will be of benefit as a primary residence.
Another thing about offers, it is just like Wal-Mart selliing things for $9.99 instead of $10.00. I would off $101,000 instead of $99,000 just because that $2,000 won’t turn a good deal into a bad deal and you have just given them a 6 figure offer instead of a 5 figure offer. I also offer $115,100 instead of $115,000. You end up out offering others by $100.