Quote from @Bill B.:
I mean the assessed values mean nothing. Sometimes you might need to offer 100% over the assessed value. Sometimes you might be able to get the, below assessed value. You’re going to have to comb through 10’s if not 100’s of previous sales in the last 2-3 months of nearly identical properties to get an idea of what your target properties are worth. Probably the best thing you could do is go work for a wholesaler for 6+ months. Currently you’re essentially a peewee football kid asking the coach how to run circles around the professional defense.
If you tell a wholesaler the zip code, the SF, the bed/bath and condition they should have a ballpark in their head instantly. MAYBE they adjust that up or down 10% depending on outside factors but they’re not checking the assessed value.
Ps. I HOPE you misread the advice saying to offer 75-80% below asking price. I HOPE they meant 75-8o% OF asking price. (20-25% off). But even that doesn’t guaranteed a deal. They could be asking 20% too much.
Pps. Wholesalers can literally pay THE LEAST for any property. You have to find a property that isn’t for sale or nobody knows is for sale, or is in unlivable condition. Imagine a home “the market” thinks is worth $100k. You think you’re going to offer $30k or maybe $70k (if you misread the 70% off part of the bad advice you were given.). While the long term hold landlord would love to offer $85k. And the Short Term landlord might offer $95k-$105k because they’re going to make more income. But then in walks the owner occupant or the house hacker who “love the house” or the neighborhoods or the school district. And they offer $110k, or $120k. You will literally never get one offer accepted. (I was going to say except for the person who NEEDS to sell today. But you aren’t really a buyer, you can’t buy today. You can only promise to go look for a buyer.)
Wholesaling is often sold as the easy way to get started. It is not. It is the cheap way to get started. As long as you don’t count all the hours you work for free that you could have been earning money and learning. I truly wish you good luck, but please be ready to pivot to something else.
Bill yes you are right, the assessed value doesn't matter. What only matters is what has sold within the last few months in that area will determine what my property would sell for. Also, yes I misspoke, I meant to say they said to offer 80% of the total value, so if it is valued at $100,000 start off by offering $80,000 and not the full $100,000 price.
So you're saying you have a home valued at $100,000 and a home next door sold last month for $80,000 and another home in that area sold for $92,000. So the average in that area is $86,000. Would it be a good idea to start off by asking for $68,800 to the seller then charge accordingly to the buyer for that property with the potential of selling to a house hacker for $110,000?
I am not worried about buying right now and I am learning from talking to you as well, so all isn't a complete waste. I just don't want to be in a situation where I was not able to maximize the deal, where the seller and buyer potentially makes 50k in profit each, whereas I only get $500, because my initial offer was 'too good to pass up'. I'm not complaining, because it is still better than zero.
