Good Rule Of Thumb
hey all-
what is a good rule of thumb for % of FMV to buy at for a house that has no structural damage, but just needs the norm, ie- paint, possible countertop, etc.?
i read posts about 25-35% under FMV, but didn't know what a good rule of thumb was. Another segment of script is that the seller is old, 80's, and just wants to get rid of the place, but it is not his homestead.
owns it free and clear, so the real only motivation might be the coming into the presence of the Lord! Thanks guy/gals for your advice.
[addsig]
Unless it has 20% profit margin, I usually walk away from the deal. I try for 50-60%. If he just wants to walk away from it see what he paid for it and offer him that, or pay off his mortgage. The only rule of thumb I have is to pay what is owed on the property.
Good Luck,
Kyle