I am doing some work for a guy who needs to sell his house. House was purchased in 06 as a two bed for $190k by his father who put 90k down. Since then the father passed and the house is deeded to the son who I am dealing with. The house became vacant last august and the seller has no desire to finish it to get it sold. Approx. $90k is owed on the mortgage and the seller owes his mother $15k and has a few thousand in the house. He was offered $125k from the across the street in feb. and he said it was to low for him, he said he might of considered $135k.
The house is assessed as a two bed for $171 and zillow is at $155k. Seller said he was going to list with a realtor for $154k as-is. House is in move in condition but to get retail value it needs a kitchen and bath, and can easily add a toilet and sink on first floor. Also the seller and his father made a third bedroom on first floor. ARV is $185k. there is a short sale on same road at $180k and a bank owned i believe for $169k.
I am thinking my best bet would be to get a option to buy for 30-60 days for $135k-$140k and list on mls for a O-O at $159k.
How do I structure this as to who pays closing costs and buyer agent fee?
Please give advise and thoughts!
Thanks all!! :help