Posted by Joe on March 14, 2006 at 13:33:17:
Paint, carpet, landscaping, plus a few other erroneous repairs … $10k estimate for repairs.
$150k - $10k = $140k
Rough offer estimate: $140k * .70 = $98k so she would get $28k. You really need to do a more detailed cost and esimate breakdown than this, but it’s a starting point. If you say “yeh, sure, I’ll give you $28k” but then another $50k lien shows up, are you still going to give her $28k? Your deal should say “free of all liens, free and clear title, etc” unless you are doing subject to, then the offer should say “excluding lien x, from lender y, for the current balance of z” or something along those lines.
Also, are you selling on the back end with an agent or does the seller have a listing agreement with an agent… because you’ll need to account for their commission. Then you need to account for refi costs, or other financing costs, etc.