This may be my first deal - need help with ARV

[Dottie W.]

Ok, so I might have my first deal.  The seller #1 is out of state and spouse lives in the home. #2 They are getting a divorce. #3 The house is fsbo & has been listed for 9 months. #4 She is "willing to work with me".  HELP ME!!! went to Zillow for the comp the zestimate was $41K cheaper than asking. So I tried to do a comp with recent homes and came up with $200k so the arv is $210k because its really turn key aside from cosmetics.  Then minus $6k for me, and the investor will profit $15k so I should offer her $179k right? I don't know if my numbers are right and I don't know if there is equity in the house (paid for).  If there is equity, what does this mean. And lastly, how do you close when the potential buyer is not local, shes in FL and the soon to be ex hubby is in the home? None of my books break this down. Please advise and thank you.  I told her I will call her tomorrow Friday 03/2/15.

[Mike D'Arrigo]

The first mistake you're making is paying any attention to the Zillow estimate. It is a meaningless number. Figuring a reliable ARV is the most critical step before making any offer. Getting it right can be the difference between making a profit and losing money. If you don't already have one, develop a relationship with a good broker and get real comps and CMA's and learn how to interpret them. I'm not clear how you came up with an ARV of $210K. If the comps say it's worth $200K then it's ARV is $200K, Not $210K, How does the fact that it doesn't need much work make it worth more than market value. Am I missing something? I'm presuming your exit strategy is to sell to a buy and hold investor. There's no margin in it for a fix and flip.