How much should you offer?

[Account Closed]

I decided to take the leap and start my own “we buy houses” website. I sent out my first direct mail campaign last night. However, I have no idea what is considered a fair price? I understand this varies based on condition but I’m not sure where to start. My initial thought was to offer them a range from 40% to 70% of the current market value until I inspected the property. Then provide them with the final offer after I do my due diligence. What do you all think is a “fair” cash offer?

[Jonathan Greene]

You started your own website and mailers to buy houses, but you don't know what a fair offer is? There is no such thing as a generalized fair offer. What you are supposed to be doing with your mailers is identifying sellers who have a problem that needs to be solved. Your job is to figure out the best way to solve their problem while also providing a win-win, not a 40% of FMV offer.

And why, given your lack of experience, would you be making offers before seeing a property. Based on what experience, data, and knowledge? You have the cart all packed up with stuff, but no horses. What you are planning in your OP will net you terrible deals, bad relationships with potential sellers, and a guaranteed loss of money because you don't have the experience and knowledge to run that business yet.