The loan 368,000…Owes 367,000…Zillow Value 403,000…
How do I determine a purchase price between the seller n I, and when I do, what if the exceptance price from the bank is higher or lower, how does this work, especially if I already have my P&S agreement recorded.
Your offer shouldn’t be dependent on the seller’s asking price, but dependent on the properties fair market value after all necessary repairs. If you’re looking to make a 15-20% profit on your monies then a home should only be bought for no more than 75% of your market’s current fmv.
Please dont use Zillow for valuation… And dont record your contract… At the very most record a memorandum of contract grab a grant deed, you may or may not want to record it.
As for the price you offer the seller… It should never be more then 50% of actual value… Make certain you have a clause in your contract that allows for price increased or decreases in the event that you need one…
I use the following:
The buyer may adjust the purchase price, either as an increase or reduction, said adjustment may be authorized at the sole option of the buyer.
Consider ARV when you purchase and also hidden costs. Know the market value of the property and then add up all sorts of hidden and visible costs plus your profit and finally some bargain margin.