I have a meeting with homeowner today and it looks like the deal might qualify as a short sale. To get a contract signed by the seller, what amount do I put in the contract if I don’t know what or if the bank will give the discount.
Thanks
offer = Fair market value after fixup - Fixup costs - (18% to 20%) discount.
Hi JAG,
From my experience, I would offer fair market value after repairs, less 30% - 40% based on the neighborhood, appreciation of the area, what shape the property is in (the more work you can show the bank needs completed, the more likely they are to increase the discount) and how far behind the seller is in payments.
Good luck, go get’em!
Ray Rochefort, mgr. mem.
Purpose Investments LLC