So Theres This Rehab I'd Like To Place A Bid On...
Hello folks,
There is a house that is listed with a realtor that I would like to purchase. It is a foreclosure. The asking price is $69k and ARV is $95k. The RE agent stated that they believe the rehab will cost $50k. I have been following this house for soemtime, even before the bank foreclosed on it, and I was told that the rehab will cost around $30k. I was thinking of just calling up the agent and saying, "Hey, I'd like to offer $25k for this house." But, is this the right way to handle this? My mom just became a realtor, should I have her act as my agent? Thanks, Tim
I would work directly with the listing agent. They are more motiviated to work with you versus someone who uses another buyers agent because they will get both sides of the commission.
If the agent told you that it will take 50k rehab, and you think the After repair value (ARV) is 95k then you need to offer close to 25k. But, it does not sound like you have a feel for the rehab costs and are just quoting other people. Offer 25k contingent on a 20 day inspection period. If they bulk then offer more contingent on a 25 day inspection period. Bottom line is that you need the inspection period so that you can get an idea of the real repair costs.
Brenda