offers on run down houses - Posted by Shelby

Posted by Shelby on April 06, 2001 at 22:38:55:

Thank you very much for taking the time to help me!
Will certainly follow the advise!

offers on run down houses - Posted by Shelby

Posted by Shelby on April 06, 2001 at 16:37:51:

I am new at this and have read some of the comments on finding rundown homes. I have some lists of properties from mortgage brokers and am wondering if there is a general rule to go by when making an offer (also an offer to a home listed with an agent). I understand the broker needs to make a profit but some of the houses I’ve looked at are in such bad shape (one was listing so badly my structural engineering husband thought it should be bulldozed) and the asking price was 109K, in the Atlanta area. I can’t see the value they are asking, or the value when the home right next store only appraised for 140k in excellent condition. This particular home is quoted as having a 210K ARV. I want to work with these guys, but these prices seem outrageous! Thank you very much in advance for any advise!

Re: offers on run down houses in Atlanta - Posted by JoeB(Atlanta)

Posted by JoeB(Atlanta) on April 06, 2001 at 22:00:53:

Hi Shelby, just follow your normal formula for determining your offer (based on ARV, repairs, profit and other expenses)–making sure that your ARV is based on valid comps/sales that you drove by and eyeballed.

Submit your offer to your agent or mortgage broker either on a Purchase Agreement or a short & sweet “Offer of Intent”.

There are investors everywhere :frowning: as IB referred to, who fraudulently inflate the ARV. We do wholesale Atlanta fixer-uppers and we guarantee the ARV in writing. If you’re interested, e-mail me.

Best of success,
Joe Brillante

Re: offers on run down houses - Posted by IB (NJ)

Posted by IB (NJ) on April 06, 2001 at 17:07:31:

Sounds like those ARV’s you’re getting are inflated. There’s a lot of fraud going around. The basic scenario is like this: A seller gets a fraudulent appraiser to hype up the price of a home while an unsuspecting buyer (like yourself) buys it.