What To Offer?
Is there a general rule of thumb as to how to structure your first offer? I thought someone told me they usually do 70% of the ARV minus repairs. Does this seem to low? Our SS attempt is on a house worth 105k or so and needs about 5k in minor touch up.
Perhaps 65K or so for our first offer?? Too low? Too high?
Thanks in advance.
$65k seems like a good place to start. After the bank starts to negotiate figure out your bottom line and stick to it.
The presumed ARV is a threshhold to help you to prequalify the prospect...The idea of using an 'after repaired value' in your formula may be your motivation to pursue the prospect, but the primary number to consider and identifyis the property's as-is, fair market value. That will be the basis for your negotiations with the mortgagee.
Whatever amount you decide to offer.. it must meet two criteria:
#1. The Offer makes financial sense to you, and
#2. The Offer makes financial sense to the mortgagee. The burden to convince them that your Offer is in their best financial interest falls squarely upon your shoulders.
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Short Sale Practitioners can't predict, or guarantee results... but can take steps to insure the likelihood for success....[ Edited by TheShortSalePro on Date 07/05/2004 ]