Unless the Realtor is a difficult person, present your offers the way you would to a buyer. You won’t be able to split the commission unless you are also a Realtor, but that should not make a difference since the commission is not your problem and does not need to be in your calculations for the offer.
Most banks these days contract out their REO properties to an agent to handle. It reduces their costs in getting it sold and they have a commissioned (ie, motivated) salesperson to try and get it sold.
The assessed value is meaningless in some states (for example, CA, where there is a statutory limit on the annual assessment increase and full reassessment only takes place on sale). You will need comparable sales within the last 3 months or so, which you can only get from someone with MLS access (an agent of your own).
Im sorry Im always in need of a catchy subject to draw interest.
Please forgive me.
My question is there is a house that is on the market for the 2007 assessed value of $445,000 comps on it run $635k-$750k. I wanting to know is how do you approach house that are marketed major fixers by real estate agents.
Also I looked at the house and it needs some major work it is in an neighborhood close to the water where the houses are being totally renovated/remodeled and being resold for $1mil dollars or more.
You go inside the house, get a list of all the work that needs doing, cost it out, factor in the value of your time, your profit, and a percentage fudge factor. If you are having trouble getting the list together, look at a retail house for sale in the area and make comparisons. Once you figure these out, backtrack from the ready to move in property comps to determine the max you should pay. Do not forget holding costs while you do work in your numbers.
Your offer should be below what they are asking by your estimate. If their asking price is full retail, then lower your offer further to allow room for counter offers.
Hey Rich-CA thanks for the info. Now I guess what Im hesitant about is that the MAO offer is going to be lower than the price which is the 2007 assessed tax value of $445k, and it is listed by a realtor.
The objective Im trying to overcome is it being listed.
Is there any information you can offer leading to working with a realtor.