i think i got it or do i - Posted by Francis Obasi

Posted by Francis Obasi on December 04, 2003 at 06:48:23:

Well He painted, added new roof, and windows.
Also the reason why I said its possible to get 55k for it is because, I did some comps on the street and saw properties with similar features and sqft that also went for 54k and 60k. Well there are 2 that went for less than 30k also.

i think i got it or do i - Posted by Francis Obasi

Posted by Francis Obasi on December 03, 2003 at 22:18:30:

Hello everyone,
I talked to this seller and he has a property for 34,900 needing 5k rehab. Okay, I did my comps and found that the property was assesed for 41k. Also I took 4 recent (within the last 4 months) sales around the area with same bedrooms and bath but diff sqft and found the price per sqft of all four. Using the average price per sqft, I multiplied it by the sqft of the primary property and came up with 48117.44. Then I did two things,

  1. I did FMV x .70 - 5k - 2k = asking price (26681)
  2. I also did FMV x .60 - 5k = asking price (23870)

Now the thing is this, the seller originally put the property for 19k like last month, then when i callled him today, he told me it is now 34k, how possible do you think I can get hinm to go for 23870 for the property, and also if you were an investor, wouldn’t you go for 26681 knowing that you can sell the property for more than 55k?

Let me know what you think.


michaela is right - Posted by ken in sc

Posted by ken in sc on December 04, 2003 at 09:19:52:

I have never spent less than $5000 on a rehab. Just paint and carpet and misc home inspection repairs often add up to more than that. Be sure of your costs and factor in for the unknown.


Re: i think i got it or do i - Posted by michaela-ATL

Posted by michaela-ATL on December 04, 2003 at 09:02:37:

you work your numbers with 48k, yet you’re saying, that there’re comps for 55-60k. So, you may want to decide, which numbers you want to work with.

Maybe consider making him 3 simultaneous offers:

  1. 34k, 100% owner financing, 36 months balloon
  2. 29k, 5k down, owner fin. , 12 month balloon
  3. 24k all cash

That will make him subconsciously choose between these 3 offers, even though they came from only one person.

To be honest, I’ve never, ever done a rehab for 5 k. It just sounds too low. If he’s done a lot of the bigger owrk, like roof and paint etc, then maybe his asking price isn’t all that unreasonable, if it only needs 5k to sell for 55k.

just my thoughts


Re: i think i got it or do i - Posted by E.Eka

Posted by E.Eka on December 04, 2003 at 08:50:30:

Give me a call this weekend and we’ll talk about this one. Also, all you have to do is talk him down to the number you’re willing to offer. Asking Prices ARE always negotiable. It doesn’t really matter if he was offering 19K 10 minutes ago. There’s a reason why he increased his price. Ask him why that is. Then tell him “This is what I’m willing to offer ____” Make sure you know what your terms are and what you’re willing to be comfortable with.
Also, don’t worry about what the property was assessed for. Those numbers are for property tax purposes and pretty much useless. I suggest focusing on comps and FMV of recent home sales of similar homes as a good indicator. On the otherhand, you can tell him (seller) that the house is worth 41K and he’s asking for 34K, but it also needs 5k in repairs…that leaves a profit of 2K which is the amount of closing costs. It would be a NON-DEAL!!!

Also make sure you KNOW for a fact that the house needs 5K in repairs. Bring a contractor with you to check out the property. Don’t believe anything the seller says.
Either way, I’ll chat with you today or tomorrow about this property.

Re: i think i got it or do i - Posted by SWRES

Posted by SWRES on December 04, 2003 at 01:18:15:

Maybe try asking why he changed his price.