Need Advice/Insight/Expertise

[Marvin S.]

I'm going to preface this post with full disclosure.... I am BEYOND pissed right now.

My wife and I found a lake house on the MLS approximately 3 months ago. We have been to the property twice and it is currently listed for $419,900. The house has been on the market for over a year and has sat empty since February 2014.

The house is a complete wreck, it needs...

• A new roof
• Windows
• Sliding Doors
• Deck
• Floors
• Bathrooms
• Kitchen
• Landscaping
• AND has confirmed mold issues that I saw personally!!!

The home was built in 1988 and NOTHING has been done to it. My wife and I are VERY new at this but we've been scouring bigger pockets the past couple months and consuming knowledge through a firehose. Going into this we were using the 70% rule and even bought J Scott's book on how to estimate rehab costs. After going back out to the site we estimated rehab costs of approximately $110k.

We even looked at comparable homes sold and the ARV we estimated was approximately $450k. So our offer price is around $205k. When I told that to our realtor she literally laughed. She said that was ridiculous and said she thinks a reasonable price would be $399k. Please keep in mind that we saw a comp from Sep 2014 with more SQFT and a finished basement completely move in ready that sold for $410k.

I honestly do not see ANYONE else purchasing this home other than an investor or professional rehabber. Sorry for the long story but I felt it was necessary to give you the full scope of our situation. 

BASED ON YOUR EXPERIENCE/KNOWLEDGE WHAT DO YOU SUGGEST? Should we fire our realtor and find someone else who will be willing to put an offer in for us?