what should i offer?

[Robert Fornwalt]

I got some good information on a house that would be on the market soon because the owner had recently died. I talked to the neighbors and was able to get in touch with the attorney that is handling the probate case. here is a little info,  male age 85 with only 1 son that he hasn't talked to I  10 years that lives in Florida house is in Michigan. I was able to walk through and it seems solid but badly needs updating. when I asked how much they are asking they just keep coming back with make us an offer. son isn't coming to Michigan to handle this so the attorney will be taking care of everything. houses in the subdivision that sold recently have gone for between $102-$109 per square foot. most of the homes in the sub are 2500 SQ. foot this one is the smallest home in the sub at 1546 SQ feet. looking for any and all help on what I should offer. houses go very quickly is this area usually less than 2 weeks. so any help would be much appreciated. thanks in advance.

[Ryan Murdock]

What are you goals for the house? Live in it? Flip it? Buy and hold?

Start with the ARV. Deduct rehab and carrying costs - leave a good cushion here. Deduct what you feel you need for profit (or equity). Now you've whittled it down to your max offer price. The BP calculators can be pretty helpful in figuring this part out.

You'll get a sense in a real hurry if the sellers are willing to deal once you start firing actual numbers at them. It's always easier to increase your offer than it is to lower it. Your only risk is someone else swooping in and buying it or them deciding to list on the MLS.