Question???

[James Jacobs]

I located a property with a ARV of 70K. The owner is asking 49K. When I plug in my numbers the maximum offer comes out to be 40K. When I run the COMPS, other homes in that area typically the same street and same features have been recently sold between 10k and 17k. I'm sure you don't pay 40K for a home that's in an area where other properties are being bought for 4 to 3 times less. In situations like this how do you determine what you offer a seller?