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? 
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.
Begin your marketing NOW! Get a jumpstart. Turn up your marketing engine, and get your tenant/buyers lined up! Document your NEXT STEPS, this will be your guide/cookbook when the evil distractions come along.
We are proud of you! You did it!
Eric & Rosa
[addsig]
You've done it! Pat yourself on the back! Celebrate a little, and do it again, several times!
Good job!
Get it gone, and you're really on your way!
CONGRATULATIONS,
Jeff