Re: Need good deal finding help please - Posted by Joe Kaiser
Posted by Joe Kaiser on April 13, 2007 at 12:09:15:
There’s an essential element in real estate dealmaking that’s missing
here . . . seller motivation. The last thing I’d want to do is be positioned
in a negotiation where someone is telling me to make an offer to “make
You’re looking at numbers that may or may not have any basis in
reality. Using zillow as an indication of market value is just plain silly.
There’s only one market value that matters . . . what some buyer will
sign his name too. Anything else is pretty much a fantasy and should
be disregarded as such.
$350k value - $275k asking price, and that LOOKS like a good deal?
Remember, the top 20% is simply air (unless you’ve got a buyer already
signed up to purchase). If you’re speculating, you can’t afford to buy
where there’s only room for 20%. In my town, closing costs are 10%.
Add carrying costs and market dips and you’re upside down with even
the slighted correction.
Good idea, “trying to learn how to find good deals.” Keep going!