Wholesale deal or No deal. Figuring out comps and what to offer

[Miyako Boyer]

Hi BiggerPockets 

Ok so I wanted to write a post to get feedback to see if I'm on the right track on figuring out the comps and what to offer the seller on this particular property. I recently came across a podcast on someone who wholesales houses and uses a formula and wanted to try it. There is a property in Nashville that is for sale by the owner for 89,900. I did the comps on it. I went on Zillow and found 3 houses that sold for the cheapest and 3 houses that sold for the highest within the last 90 days, to get the average with the same square footage and number of beds and bath. 

Cheapest- 

1. 130,000, 

2. 150,000, 

3.140,000

Highest 

1. 225,500

2.264,900

3. 175,000

I then calculated the repair cost by taking $20.00 per square footage which came out to about 21,000 in repairs.  

According to the formula I should be offering 99,060.00 and my profit would be 20,000. In my eyes it doesn't make any sense because I would be offering more than what they are asking. 

There has to be more work involved when figuring out comps and what to offer a seller then just doing a formula. 

[Derrick R.]

If your comps are good, and the property is not a complete disaster, either

-negotiate another 5-10k off to be on the safe side

-offer and pay what they're asking, make 30k

-or pay the 89k save your buyer some $$ and discount your fee to 5-15k

To help - you want to drive the area of the comps at least to find out if the 'cheapest' comps were sold as rehabs, and if the 'highest' comps resemble your property post rehab.