What would YOU do?

Here’s the situation :smiley:

I put in an offer on a house three weeks ago – this house fits every one of my criteria (low crime, low number rentals in the area, very easy access to Atlanta, etc.). The bank turned me down flat – no counter. They told my agent, it’s only been on the market five weeks and they will wait to see what other offers they get. I didn’t low ball them too badly – it was a very respectable bid considering the work needed to bring the property to par. Asking price was $94.5k I bid $82.5k (cash). The ARV is $135k.

Yesterday the bank lowered their asking price to $89,775. I’d like to submit another bid: Tell me what you’d bid – the estimated repairs are $17-20K, there are serious plumbing issues between the first and second floor (no visible mold), a lot of the ceiling has come down between the upper and lower bathrooms, in addition to holes in the kitchen ceiling from water leaks (you can see the pipes the holes are so big), water stains in the master bedroom, etc. – there are water issues LOL. The rest of the house (after that big issue LOL is paint, carpet and go – even the kitchen cabinets are beautiful – the house is only 10 years old).

Same bid, higher or lower? I really love the property, my agent says to go with an offer of $80k – I’m not so sure and want to bounce it off of you all. It’s a very spacious 3/2 on an acre. The neighborhood is beautiful with the exception of this house and the one next door. The next door house is owner-occupied and they are raising Rottweilers. The dogs didn’t bark too much but they are HIGHLY visible and scary, especially to a non-dog lover.

I would rehab the house, put a mortgage on it to pull all my money out and rent it. I can get $1,110/month for it very easily (this would be a positive cash flow). And, another option, I have a family who keeps calling me for a lease option.

I value your input so much. Thoughts? And, thank you in advance.

Honestly TamiSpartan I would offer the same as before with 3% seller conseccion have them pay 3% of closing costs!

So $82,500 minus 2,475 that way you do not have to pay all the cost’s!

even though you are buying cash its less money to bring to the table ALSO when I write a cash offer I always send them a earnest money check for the full price make them think!

While we are on the subject what bank is it?

I always call them myself! just to show them you are ready to play ball the other thing to look at is a fast close!

I say “the same offer” and make sure that you include copies of the estimates needed to repair along with sme pictures if you have them. A lot of times, the “suits” making the money decisions have no idea of condition, have never seen the property, and couldn’t find it on a map.


Thank you gentlemen! Great advice.

I always go for the fast close – 14 days, should I make it even faster?

I always take photos, never thought of including them.

I’ll let you know how it goes!

YOU GO GIRL! Good luck! (At least no one overbid you yet!)