Coppell, TX · Member since 2015 · 485 posts · 310 votes
What are you offering for off market properties (like pre foreclosures) in todays hot market ? I am sure its above 70% ARV.. 80% minus repairs?
I ran the numbers on a house "selling on the market" versus my offer @ 80% ARV and I come up with a 27k lower net than selling in the open market and paying realtor and closing costs.
This is for a house in under 400k in value, I plan to make a subject-to + Cash offer.
This is in DFW, if that matters, but just looking for a target % ARV as a starting point that isn't a total lowball..
Market Scenario
ARV 370k
Outstanding 1st 135k
additional mechanic liens: 10k
9% Seller closing costs : 33k
Net sale to seller with market offer: 192k
Subject-to
Offer (80% ARV) = 296k rounding up to 310k (paying for their liens)
I would start wherever you think is a fair price while also not immediately offending the seller. If you've spoken to them you should be able to feel that out.