Including A Cost Sheet With Offer?
I'm getting ready to submit my first offers on some bank owned property. My realtor has told me that the listing agent let him know that they have had a dozen or so low ball offers in the last month and have basically countered at about $10,000 less then the asking price (160,000). My research shows the house should sell for $180,000 when done and with rehabing expenses, interest and commissions taken into account I need to purchase it for about $135,000.
Does it make sense to submit along with my offer a letter explaining my intentions as an investor to buy the house, rehab it and resell it. Also including my estimate for the expense to incur and how I came up with my offering price?
It seems to me to make sense. Could the bank just be miss informed as to what the home is really worth since all they are probably going on is the word of there listing agent. And if someone comes along with a plan that documents things with hard numbers they might take my offer?[ Edited by mfinley919 on Date 10/10/2003 ]
Banks like the rest of us, why not get as much as they can.
Condition of the house has verry little to do with morgage apraisal.
Banks normally don't drop in huge amounts.
They would rather sell to some end user that won't put any value on sweat equity for thier dream house.
Most banks will wait that out. Ive seen banks wait years. I don't know why
They drop 5K at a time and wait or put paint and carpet in.
You can send them whatever you want. If you get them to move over 10K at once please PM me
David Browne
I have put in a couple of offers and that is my experience also. It is most depressing. They should WANT to offload their properties to us rehabbers at a massive discount, and be GLAD of having the privilege of doing so, dammit!
Seriously, I think I will have to start looking at properties with more serious levels of damage, in order to find sellers motivated enough to make the numbers work. That isn't what I wanted as a new rehabber, because I wanted to get experience with the easier ones first. But that's the way it is. Any more thoughts anyone?