Wholesale Deal or no deal?

Question

I have found a 4 bed/ 2.5 bath from a "For sale by owner". The property has a walk out basement, Generator, option for first floor laundry and the HVAC and Water heater are about ten years old (house is about 45 Years). The person would prefer to leave the appliances and security cameras but that is negotiable.

For price they want 215K after speaking with them they were willing to take 180K as the lowest (encouraged me to make an offer to see if they would take it). Comps I did around varied, some were close to 180k with not being exact other comparable homes were in the 237k range.

Other than the galley kitchen, square feet differences and number of bathrooms I'm at odds about where to go from here. Please let me know what you think and thanks in advance.

Rob Witt · Answer

@Jason D.

Yes sir, I estimate about 30-35k mostly kitchen and bathrooms.

Charles Willie Harris · Answer

I know we already discussed this, but if 180k is the lowest they will possibly go, and that’s truly the fair market value (FMV) in that area, then that doesn’t sound like a deal. The highest you’d want to buy for is usually around 70%-80% of the FMV. Guideline, not a rule.

I’d still send them an offer in the mail for around $140k AS-IS with a draft contract of some kind if you can spare the postage! Since they’ve been trying to sell for months that tells me that either they’re not super motivated and/or their asking price has always been too high for interested buyers/investors.

Jason D. · Answer

@Rob Witt not a deal based on those numbers, unless it is a retail ready home with no updates needed. But, I'm assuming, it must need some work, otherwise they would list it with a realtor

Charles Willie Harris · Answer

Aww that's excellent.

Rob Witt · Answer

@Charles Willie Harris

The house is paid off and it has been several months they have been willing to sell.

Charles Willie Harris · Answer

Yo again! By any chance, did they say if they had a mortgage still owed on the property? Any equity?

Did they at all seem like they were in a hurry to sell?