I'm making an offer, take a look

[William Morgan]

I will be making an offer in two days on a property. I ran the comps, drove the comps, inspected the house and have a good feel for it's value. She has two other properties she also wants to sell me that I'm hoping get so I'm giving her my best price.

Comps (with .5 mi, 15sq', same bd/ba etc. ) show a range of $195-230k.

A near identical property with slightly better features (larger yard, driveway and a little prettier) sold a week ago for full price, $235k with multiple backup offers according to the agent.

The property is 12 yrs old and feels like a worn rental. Renovations will include a few doors, flooring, int paint, stucco repair, ext fencing fix, and the like. I didn't find any major structural issues and I plan to have a home inspection sniff out component defects which will be deducted if found.

I am anticipating a generic 'lipstick' remodel to the tune of $10-12k max.

I plan to list flat-fee MLS for $400 with 3% to buyers agent $6900 .

I'll have to evict tenants.

I'm factoring a 3 month holding time (although I suspect it will be less from what I've been seeing w/ properties at this price point).

I'll be financing it.

I'm paying closing costs (Title, escrow, etc) $2500?

All totaled I'm figuring no more than $25k in costs.

I should be able to sell it for $229k fairly quick.

I plan to offer $180k

Sound offer? Too skinny? What say you?

[Aaron Mazzrillo]

Did you forget to budget for profit? Or do you do this business pro bono?

There is one very golden rule you should learn in real estate:
It will take longer, cost more, and you will make less than you expect.

Make your offer based on that and you won't lose money.