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Updated over 4 years ago on . Most recent reply

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6
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1
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Dan L.
  • Orinda, CA
1
Votes |
6
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How much of a Covid discount would you need to purchase now?

Dan L.
  • Orinda, CA
Posted

I invest in a county that has a limited number of permitted vacation rentals - these properties trade at a premium and only make sense to purchase if you are going to run it full-time as a vacation rental so you aren't competing against "regular" buyers who may use it as a second home or only rent part-time.

I had a broker bring me an off-market deal this week and I struggled with what to offer given all the uncertainty regarding Covid. I ran the numbers assuming pre-Covid performance and came up with what I would have offered on the property in February, but obviously some discount to that price is needed now.

If you are making an offer on a vacation/STR rental today, how much lower would your offer price be than on the exact same property in a world where Covid didn't exist?

Dan

Most Popular Reply

User Stats

165
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137
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Karen Chenaille
  • Real Estate Agent
  • Sevierville, TN
137
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165
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Karen Chenaille
  • Real Estate Agent
  • Sevierville, TN
Replied

I am placing two offers in PCB Monday. I used a Comp set of sales since January 2020. There was no appreciable drop in prices...even in March after everything had pretty much shut down. My starting offers are 10% below avg price per square foot for the comps just because I like to know I got a good deal and not because of the corona virus. 

  • Karen Chenaille
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