Eager newbie need Advice - Posted by George

Posted by George on February 15, 2000 at 19:52:17:

Thanks…a million. I’ll look it up tonight!

Eager newbie need Advice - Posted by George

Posted by George on February 15, 2000 at 19:10:33:

Got an offer to by a SFH assessed at 119K for 105K by a old friend who just inherited her mom’s home and plans to move in it as soon as she can “get rid of” her curent home…She says she is desperate and is practically begging ME for help. She recently listed the home w/ a realtor, who suggested she lower the price to 105K (She orignally said 119K). She is not interested in assumptions or the like. She wants cash to use for her mom’s home. The neighborhood is 6-7yrs old and the home should resell rather quick. However, I don’t have any buyers or lenders lined up…I want to link up w/another investor to go in w/me so that I can learn how to make the deal and profit too. I have made contacts w/two local REI clubs and don’t mind sharing this one with the idea of going solo as I learn more. Advise Please…Thanks in advance. YOu are guys are great!!!

Not an expert - Posted by Lisa in Oz

Posted by Lisa in Oz on February 15, 2000 at 19:27:14:

Hi George

It is my understanding that when a Realtor reduces the price soon after listing the house, it usually means they inflated the price to get the listing. If 119K was a good price for the home, it would have sold.

Why do you think it will sell quickly at 105?

My advice is to know what’s going on in that neighborhood. What are the homes REALLY selling for and then work backwards from there to achieve your offer. Taking 70% of the actual FMV and subtracting you/your investors min. profit is what some do (that doesn’t include any holding or fix-up costs) to arrive at a price. Look up the house on www.octitle.com under “Title Advantage” and see what’s really owed on it and local comps.

Good Luck.