So, I have a property that I"m looking at that is currently listed for 123k. Overpriced considering that the one next door has more ameneties and only sold for 109K just in Dec. The house doesn’t need that much except maybe siding on the garage and some prettying up… if desired. Its in a college town, so it can be rented out. I have numbers for all this except the cost of the paint and stuff, but where do I go from here? I know I have to make a low ball offer at least 25%-30% off the APR, but what is the best way to present this to my investors if the offer is accepted. I want to make sure I don’t tie up the property before I have a plan of action. sorry if this is petty, but I really want to get moving so I can stop asking such stupid questions! :smile
Why are you even looking at this house to begin with? what was so special about this that that made you even consider it knowing it is overpriced?
By the way, my questions were real questions not being mean at all. just trying to figure out what potential you saw in this house.
I agree with fadi. If this deal has no potential, then why bother. If the owner will except your low offer, then you might have something. If you can get it for 30% and there isn’t too much repairs and it has good value, then you can present it to your investors as such. Don’t get attached. if they dont’ accept it then move on to the next!
Is there something about the seller that makes you suspect he will take a low offer?
Usually with over-priced property, the seller doesn’t care if it sells or not. If they get a high price, they will sell it. if they don’t get their price, they just keep it.
You can look for clues that indicate a seller will take a low offer: divorce, death in the family, loss of income, facing foreclosure, a landlord who is fed up, a sale that fell out and the seller has already picked out his replacement house.
Also, if the house that sold for $109k was some sort of super bargain for some reason, it doesn’t necessarily mean that the rest of the houses in the area are only worth that much. Was it a normal house in normal state of repair? Or was it a mold house that was a foreclosed property?