FSBO in Richardson, tx

[Tony Hernandez]

My wife found a 3/2 FSBO as the owner was putting the sign out in the yard. I did my research and feel like ARV is $240k but asking is $250k.

We looked at the house today and we were the first folks to see it. It needs updating as it still has original finish outs from 1970. Using J Scotts MPP method my calculation resulted in a max offer of 185k.

The owner was a nice lady who said they bought it 18 months ago for their son who now is moving. They just want to cash out. I told her that I didn't think she could get full retail but she was confident that they could. I know they paid $180k in cash so my offer of $185k would definitely be low given the appreciation thats happened in the last 18 months. 

So what did I do? I chickened out. I didn't give her in offer. I told her I will call her back in a few days to see if they've got what they want and if not I would have an offer. I didn't want to insult her. Clearly they're not distressed sellers and think they could get full retail. And they might. Inventory is so low that someone might think this is a good choice for them.

The stinky part about being a newbie with a family and a lot to lose is that you are unsure off everything. I have no idea if my ARV or rehab estimate are right. So I went conservative but did I go too far? And then I didn't have the courage to insult a little old lady who might have not been insulted. I put that on her.

Anyway, I just wanted to share this experience so I can look back in a few years when I have several deals done and laugh. 

[Arissa Pedroza]

I wouldn't waste time on this home.  It is a sellers market and the inventory is low.  When I present offers to my sellers that are considered 'low ball' they do get offended and don't want to even counter.  This home just went on the market so the sellers have zero motivation to negotiate.  Try looking for distressed properties that are already priced to sell :)