Help, Should I pursue this deal??
I made an offer through the selling agent for an REO property(3br/2ba) SFR frame with brick foundation and sunroom. The asking price was $99,900 and I offered $80,000. From reading the purchase agreement the selling agent and the listing agent each will receive 3% commission from the bank.
I presented my offer along with a preQual letter and earnest money of $3,000. I also had the home inspected with estimated costs for repairs running at around $7,000.
I do not have comps from a real estate agent, but just from the free websites comps in the area put the property at a value of about $118,000. Could get a 80/10 loan with interest rate around 6%.
My question is , Is this a good deal or not ,considering all the repair costs involved?
Any information would be appreciated.
Is it a good deal? Who can say? Is this to be an investment or is it speculative?
Whatever the answer, if it meets with your expectations, then it's a good deal for you.
That's all that matters.
A lot depends upon your market, and the resources that are available to you. There are those that wouldn't waste their time unless thay make a net profit of $20,000 per deal. Then, there are those who would leap at the chance to make $10,000.
On one of my first deals I made $3,000 for assigning a contract and I was very happy.
On another deal I made 10 times that amount and felt shortchanged.