What's the normal buy to sell spread you look for?

[Derek T.]

I have read many people who have certain spreads that they look for and I am noticing more trends as I submit offers and one trend is with my buy to list spread. I think I read something where most people look for a profit spread of $15,000-$20,000 on their deals and I would be the same. However it seems like I am seeing a trend with where I am trying to buy and list. Here is what I am getting.....

Buy from $60,000-$120,000
Sell from $160,000-$250,000
Average HML Fees- $10,000-$15,000
Average Rehabs- $30,000-$50,000
Average Buy Fees- $5,000-$7,000
Average Sell Fees- $10,000-$15,000

So it seems like my average spread between where I want to offer and where I want to sell is around $95,000-$110,000. Am I being too conservative with my offer estimates and what is your normal buy to list spread?

[J Scott]

There is no "normal."

If you're doing essentially no rehab, your buy and sell differentials will be about the same as your profit. If you're doing a large rehab, your buy and sell differentials could be huge.

Personally, my purchase average is $49K, my rehab average is $23K and my resale average is $102K. But, many of deals don't look anything like those average numbers.