About Top Jump In
Ok Everyone;
I am ready to make the first leap. I have my financing in place and I am looking at some properties in NY State, I did the comps on these homes now all I have to do is make the offer. The homes I am looking at range from about 10%-25% above the comp. values for the area. Not to many flexible (in terms of holding paper) sellers. The homes all have a positive cash flow attached and my question is where do I start the offer at. Is there a certain % I should discount the offer? Do I start at the comp value? Do I go 10% below the comp value? All of these homes are in an area where the home has been on the market from 2-4months. Any help would be appreciated. Thank you all for your insight and experience.
It is deal dependant. I usually start at 60% of FMV and work my way down. But that is my market in my area, youres will be completely different. If you are using a realtor then I would ask for the expired MLS listing and see the ones that have been on the market for a year or more. They will be ripe for a negotiated offer. I would only pay as much as 80-90% of FMV if they were going to take a second and the property was something I just had to have. I would also start calling the smaller realty houses they dont get as many calls as the nationwide ones and will work with you on finding a better deal. Tell the realtor that you want to buy at 70% of FMV or less and see what they will come up with.
Remember that the deals are there you will just have to find them. Sometimes it is worth waiting for the right deal rather than be cash poor when the right deal comes along.
Good Luck,
Kyle