Making An Offer
This is my first time flipping a house. I found a bank owned home being sold by a realtor. They are asking 20,000. I am very interested in the house and I am going to pay cash for it. The house needs new everything including furnace, septic system, windows kitchen, bath. How much should I offer??? And how much will all of the closing costs be???
Greetings shanmarie,
Before anyone can really answer your question, you need to provide a whole lot more information.
For example…
• What is the house’s current “as-is” value?
• How much will the home be worth after repairs?
• How much are repairs going to cost?
• If you rent it out...what are rents going for in the area?
• If you sell it…how long are comparable houses taking to sell?
• Are you going to market it yourself? Or, through a Realtor?
• Etc., etc., etc.
Some people might tell you that you shouldn’t pay more than 70%-75% of the ARV (After Repair Value), less the costs to rehab it. But that formula doesn’t always work.
If you can provide some more information, people might be able to give you some good insight.
Just my initial thoughts.
: )
Ask your mom what to offer for it.