All Forum Posts by: Account Closed

Thank you, Chris. I just needed to know if I have to use the probate attorney or if I can utilize a title company to do the closing. The attorney that I'm dealing with told me that it's best for me to get the deed recorded in my name, then we can do the second closing with my end buyer. I suppose I should use a title company so that I can do a double closing rather swiftly instead of waiting a few days. The seller has put total control in my hands regarding the probate property.

Hello, all. When buying a probate property, does one close using the probate attorney, or can the purchase be done via a title company like a traditional real estate transaction?

Hi, cashflowboy. Yes, a formula like the one you've posted is feasible, but I use ARV x 60%-65% - repair costs - closing costs - my profit. Whatever value I come up with is my offer price as a wholesaler. The 70% is what you use if you will personally be completing the repair/remodeling duties, then selling at retail value.

Thank you very much, Stinson. You've provided such a thorough response. I found only 2 completely remodeled colonials with 3 bedrooms and 2.5 bathrooms that sold in April and May 2011, although they are over 1 mile from my subject property. The one's in the same park of the subject property are 4 bedrooms and 2.5 bathrooms. I've decided to order an appraisal on this one as even realtors have varying opinions as to how to price this particular house. What I do know is that this house is in really great shape.

Thanks, everyone! I've decided to branch out and include other parks in this town which are over a mile from the subject property's location so I could establish a solid ARV for a 3 bed/2.5 bath. If I use comps from April and May 2011, my subject property's ARV is $162,500. If I use comps from December 2010 to current, the ARV comes to $144,087.50. Is it best to include these older comps or should I stick with the most recent ones? I'm thinking the most recent ones as they reflect what's happening with the market today.

Thank you so much for the replies, Jon and J Scott. Each house is the exact style colonial, without basements. Yes, other colonials have sold, but all were bank owned needing work done. Perhaps I should branch out to another subdivision for 3bed/2.5 baths? The town that I target is divided into many sections called parks, so I only used these recent sales (completely remodeled ones) since they are in the same park of the subject property. You think it's best to order a desk top appraisal on this one?

I'm having a little difficulty estimating the ARV on a short sale. I have 2 recently sold comps for the subject property. Here's the breakdown:

Comp 1:
Sold Price:$189,900
DOM:61
Square Footage: 2067
Year Built: 1961
4 bedrooms
2.5 bathrooms
Date Sold: 2/2011

Comp 2:
Sold Price: $185,000
DOM: 29
Square Footage: 2070
Year Built: 1961
4 bedrooms
2.5 bathrooms
Date Sold: 12/2010

Subject Property:
Accepted Offer at $65,000
Repair Estimate: Finding out Monday
Square Footage: 1797
Year Built: 1961
3 bedrooms
2.5 bathrooms

All are the same style. I was advised to calculate the ARV based on price per square feet. When I did this, I came up with an ARV of $162,846.33. Basically, I averaged the 2 home sales and divided this average ($187,450) by the average SF (2068.50). The price per SF came to 90.62, and I used this value and multiplied it with 1797 (subject property's SF). My concern is this: Is it really appropriate to knock off $24,603.67 from the subject property's value because of 1 less bedroom and a smaller SF?

Thanks in advance for your replies.

Thank you for the great insight!

Hey, thanks, J Scott!

This is classic, very humorous!