I Think I Offered Too Much!
Hey guys: Here's the deal: ARV: 125,000 Repairs: 5,000 or less MAO: 82,500 My offer:76,500 Sell Price to all cash buyer:80-81 I used the Ron Legrande formula of ARV(.70)-repairs-profit=offer. But I was reading a few articles and posts from other sites and was told that your offer should be 50% below arv which is not true in this case eventhough I stuck to my formula. I'm scared that I may have offered too much--any thoughts? :-S :wow:
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if they take it, which i doubt, without countering, then you DID offer too much.
what kind of place is it, a rehab, foreclosure, mls listing, fsbo ...
The formula is about standard. You offered right at 60%. I understand that you are basing this off of them countering the offer, but 60 ARV isn't bad. How long has the property been sitting? That makes a lot of difference.
Dee
Thanks for your reply. They did take the offer actually---I should have known it was too good to be true.
The house is a FSBO and is in a good neighborhood. I don't understand--is my formula for offers wrong?
THe house is not officially on the market yet..I contacted the seller with a letter because i noticed it was vacant...[ Edited by results_one on Date 11/05/2003 ]
Your fine, if you aren't losing money...it's okay. Maybe next time offer something a little lower and since you have LeGrands course, you know what the magic words are...If i paid all cash .....
Use that one next time.
oh ok, you're ready to go then! you did great and you should be able to sell quickly and turn a nice profit.
when i make offers, i don't use a formula, but maybe i should. i study the ins and outs of what offers were made on like homes (a little more in depth than comps) in the area and then do some what-do-i-need-from-this type number crunching to come up with my figure and i stick pretty close to it when i find it. sometimes they take it, often they don't - but that's ok. hahaha.
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