MLS Find

[Michael Young]

Hi all, I've come across a great house that needs a ton of work to be livable. It's listed on the MLS at $190K. The pictures make it look like it has mold, maybe some floor rot on the main floor above the basement. Roof looks ok and siding looks ok, but inside could be a total gut. I'm estimating $75000 for repairs and the ARV is around $295-$305 depending on the basement finishes. These numbers make it look like I need to offer somewhere in the $145K range. I'm in the ultra hot market of Colorado and this one is between Denver and Boulder. What is the likelihood of an accepted offer at that much of a discount? Can anyone offer any advice on how to word the offer to win in a competitive market while getting the price I need? Appreciate all the responses. Michael

[Account Closed]

A clean offer goes a long way. We just had an offer in the bay area that was close to if not lower than others because it was cash, 10 day close, 5 day inspection, we also took all closing and title costs. For where we are they usually are the sellers responsibility or split. The agent had a friend that made the same if not higher offer but theirs was 30 day close and they were asking questions like is the title clean, any issues with title, etc. From those questions the agent knew he was going to have to walk the buyers through the entire process. Mind you my partner and I are by no means big time players but we held ourselves professionally, did our due diligence and assured the agent that this was going to close quick on our end. We didn't hire a professional to write our offer we just made it the way we would want it if we were selling. 

Put yourself in the sellers shoes look at your offer and think, how easy is this offer going to be for me. At the end of the day make the offer with your numbers, not emotion, and if it gets accepted right on. If not move on to the next one. I've made well over 100 offers and have had 7 accepted. The more people that say no, the closer you are to a yes. 

p.s. If you want a deal in Concord, CA shoot me a message.