Estate Sale, How Low Is Too Low?
I have a house with a ARV of 174,000.
I was told to put in an offer of 100,000 to the executor.
There are 6 siblings arguing over the estate holdings.
Is the 100,00 too low or should I do something like 120,000 so that there could be a six way even split.
I could very easily wholsesale it for 140-160 or LO for 200K
Thanks for your time in advance!
Michael :-?
My first question would be is their any amount owed on the property?
[addsig]
There is a surprising (and predictable) appeal to round numbers. If there's any chance of getting terms, you could offer, say, $16,000 cash each now or $10,000 cash each now and $10,000 cash in one year, after you sell (just write it up as CDs). That way they could help you finance the property. But if some chose the cash and the others the deal, the paperwork could get messy. Probably with this many (esp. arguing!) players, anything other than cash might be messy. It's funny how the prospect of cold hard cash can settle people down, though.
If one or more sibling won't agree, you could offer a bonus of $1000 each if they can all agree, then everyone has an incentive to get the odd one(s) back in the game, even to the point of handing him/her their bonus to make it happen. You have lots of options for structuring a creative deal here.
Quote: I was told to put in an offer of 100,000 to the executor.
Who told you to put in the offer?
Wow, thanks for all the info
To begin with I have teamed up with an another REI person They have been doing real estate and REI for a number of years. They suggested the 100K offer
Second, I do not know how much equity there is in the property or how much is owed on the property, but I did find this on a a "metroscan" report.
recording information for macomb countyRecording information for Macomb County
History Start Date 01/01/2003
Sales 01/01/2003
Mortgages 01/01/2003
Assignments [no date given]
Releases [no date given]
Foreclosures [no date given]
Rec. thru. Date 09/03/2004
Sales 09/03/2004
Mortgages 09/03/2004
Assignments 09/03/2004
Releases 09/03/2004
Foreclosures 09/03/2004
Does this indicate that it is in foreclosure?
Should I hold off on making the offer until I find out how much equity is in the home or how much is owed on it? I just figured once they are deceased the mortgage goes away and the hiers get the property free and clear.
Am I wrong?
Thank you again!