Hello everyone I have been out of the game for about the past year due to family some family issues out of state. Last year it was safe to say most real buyers were picking up properties at least 50 to 60% in good condition. My question is, things have changed in the past year and homes values have dropped. what percent are you guys buying at now? My guess would be to start at the 35 or 40% range then subtract repairs, my fee, and so on. Am I in the ballpark? I am in phoenix az if that helps thanks in advance, can’t wait to get my business rollin.
Pristine move in condition in Phoenix at least 35% below FMV. GR
Wow! Really? Only 35%? I figured it would have been in the 40 or 45% range. Thank you GR for clearing that up for me. One more question. Are investors more interested in move in ready homes or is there still a market for higher cost rehabbs?
The market over $200k is virtually dead, most buyers are currently in the working class range below $200k!
Either as buyers are interested in move in ready housing and deals can be made to buy rehabs at 30 or 40 cents on the dollar requiring light to heavy construction cost’s!
Chris, that will depend in what market you are at. Here in MA 80% of the ARV minus repairs is a good price.
It’s really gonna depend on the scope of work the house needs and the area where the house is located. These variables make it impossible to just assign a number for a city as large as Phoenix. In general, the worse the area the bigger discount you’ll need to be at. Ditto for heavier rehab jobs.