FSBO vs ARV

[Matthew J. T.]

I've been searching countlessly to find an answer for this, my question is that, well I guess two questions.

First of all, if I find a seller that is putting a property up for sale for 185k for example, and the actual ARV is only 150k, how do I go about telling the seller that you are selling this property for way too much to start at ? If you follow me, you have to be able to make a deal starting at the ARV not at what the Owner is trying to sell it at correct? Or do I negotiate with the owner based off of what there "Set" price is , or do I negotiate based off of what "ARV" is?

Second, I've been spending time researching how to find comps, even if you go based off of ARV and not what the seller is trying to sell the house to you at, and all the websites (which I have seen other people on here as well on BP) often have inaccurate information such as zillow etc (the free/computerized websites) And so if I don't have access to MLS or know anybody, what can I do about estimating ARV of a house?

I know there are "pay" websites such as RealQuest and SiteX but I am just starting out as of now and they seem to be expensive and I have searched just about everywhere looking for my answer so hopefully I can find it here. Starting out what is the first method you used without having MLS getting a contractor or paying expensive websites to figure out ARV?

[Bill Gulley]

Matt, my first question would be - are these properties local to you? If so, get off the appraisal sites, none IMO are accurate. Use the MLS with a Realtor, especially at first.

Pull your comps first, you don't know what it is worth until you assess the value. Then when dealing with a FSBO, show the comps and justify your offer. Explain what the market is at that time.

FSBOs usually need alot of caoxing and explanation if they are not highly motivated to sell. Usually, they are trying to do it themselves to save money and usually out of touch with the reality of the market. So, you have to educate them.

I have seen FSBO sellers justify their price by saying what they need, topay the house off and a car and the daughter's education. You have to inform them the house did not buy the car or send that young lady to school! IMO, unless you have a motivated seller, stay with properties listed properties as a beginner. (I'm sure many would disagree, but you can spin your wheels with FSBOs. Good luck