Looking For Thoughts About A Potential Deal

[Shawn Connors]

Hey BP,

So I wanted to put this out there and get some feedback from you guys/gals.  I went on an appointment yesterday with a very motivated seller.  The wife has a new job in Maryland and is looking to sell their house and move yesterday!  They had someone from a Sell House Fast company put their house under contract and he completely screwed them.  The owners were under the impression that the company was going to buy the property from them directly.  Turns out the he was a wholesaler and kept lying to them about not having the funds and blah blah blah.  Needless to say, they are a bit weary and would like to just sell their house as quickly as possible.

Here are the details of the property...

3000 sq ft, 4-5 bedrooms, 3 baths, full un-finished basement, with a 2 car garage.  The house is in really good condition.  It needs some minor repairs but nothing major.

Asking 185k

Comps are all over the place.  The property next door, which is almost identical sold for 325k and there is a rehabbed home on the market 2 doors down for 350k (500 sq ft larger and its beautiful, been on the market for 106 days).  There are comps that range from 200k-350k.

Here is the kicker(s).  The taxes are outrageous (11k!!!), the property is next to the main road and the average DOM for this area is about 6 months!!!  It is almost guaranteed that if we were to put the money into it and make it more modern it wouldn't sell until next spring.  

Here are my thoughts... Offer 160k cash.  If the accept, we can close in 4 weeks and then immediately relist the property for 220k.  I am a licensed agent so we can save on half the commission.  There is still a strong possibility it will take a few months to sell and we might have to come down in price and sell for 210k.  Backing out our financing costs, taxes and insurance, we could potentially make 20k-25k, depending on the market.

Our other option is to offer owner financing terms.  10k down payment and 1k a month in interest.  Our goal here would be to either turn around a immediately relist it and try to sell at 220k, or invest some money to try and get a full value for it.  

I would love some feedback from you all!!! thanks!