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Answers (5)
- Margaret Seme, "bikeragent"
- Contributions:23
As previously said get an agent to do a CMA for you. You may still be in a depreciating market if that is the case it maybe worth less now than it was when they bought it. I would also want a list of repairs they made and if they are repairs that needed a permit did they have those and had final inspections on them.But don't pay more for what it worth in its present condition and you need to make sure that you build in your profit margin if you are going to resell it.
- Sharon Lewis, "Sharon Lewis"
- Contributions:3923
Do your homework, get your realtor to do a comparative market analysis on the home, have them ask the listing agent about how motivated the seller is, what the seller has done to the house. They may be slightly more motivated right now as we head into the winter months. If its a 'flipper' they have hopefully worked through what their bottom line figure is.
You need to sit down and work out how much its going to cost you to fix this fixer upper, up :)
Best of luck to you, keep looking for other alternatives to this home.
You need to sit down and work out how much its going to cost you to fix this fixer upper, up :)
Best of luck to you, keep looking for other alternatives to this home.
- Maria Morton, "MariaMorton"
- Contributions:716
What they paid for the property, how much they owe on the property, or how much profit they may or may not make on the property is irrelevant. Comp it out, figure out what it's actually worth in it's present condition and how much it would be worth restored. Figure out what rehab will cost. Add the amount you believe the present condition warrants to the rehab costs. Compare that to the price the house would bring if fully restored/rehabbed. You want to pay no more for the house + rehab than it would be worth in restored condition.
Your agent will go over all this with you when you're ready to write. They may be able to determine seller motivation or other history which may help you with strategy but that's a maybe.
Your agent will go over all this with you when you're ready to write. They may be able to determine seller motivation or other history which may help you with strategy but that's a maybe.
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
I wouldn't recommend offering a penny more than what the comps dictate, don't forget to deduct for repairs....maybe less depending on where that comes in. It really shouldn't matter to you whether or not they make a profit, it should matter whether the offer makes financial sense for you. If the property doesn't make sense at an amount they are willing to accept, there are lots of other homes.
- Leigh Bryant, "lbryantrealtor"
- Contributions:12
There are no "industry standards" for this type situation. You won't know their motivation until you put something in writing and find out. But keep in mind that there may be Realtor fees involved that have to be paid so the 18K is actually less. Based on the 159K list price they are probably hoping to stay North of 150K, but again you never really know motivation until you take the first step.
reasonable offer to purchase a home being flipped
Im looking into a fixer upper house listed for 159,000. its in need of repairs and i happened upon some tax records indicating it had been sold 9 months ago for 92,000 to a company that's probably is trying to flip it. im thinking of trying for 110,000. does anyone know if 18,000 would be an acceptable profit for them?
Thank you
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