need advice quick

[joseph44]

Goodmorning Everyone,
Question:I looked at a fix/up home young lady must sell.The home is listed
but the girl must sell soon on market by/owner now realtor for approx.7/9
months.Here is what my offer would be.Average home in area about 279,000
asking 299,000 needs about 30/50,000+/- work.I want to offer 131,350.She
paid per tax records 217,000 no more than 15months ago.I figured arv to be
at 279,000 I figured my h/m rate and came to 181,350 - my fix/up coast and
other variables and came to a final of 131,500.Problem !!! she still owes about
80,000.The home is in a good loc. One block away devel.putting in 300/400,000 dollar homes,close to everything 20 min to beach.I beleive if she
trys to hang tough she will go to forcl.What I'm looking for is suggestions on
how to handle this.My contractor and I will look at it on sat I know I'm not
way off on fix/up costs.Hey I thank everyone in advance and all have a great wk/nd

[dealmaker]

I'm not too sure why anyone trying to get $299K is going to do anything other than laugh at an offer for $131.5K, but go ahead.

dealmaker

[ThreeRiversREI]

Goodmorning Everyone,
Question:I looked at a fix/up home young lady must sell.The home is listed
but the girl must sell soon on market by/owner now realtor for approx.7/9
months.Here is what my offer would be.Average home in area about 279,000
asking 299,000 needs about 30/50,000+/- work.I want to offer 131,350.She
paid per tax records 217,000 no more than 15months ago.I figured arv to be
at 279,000 I figured my h/m rate and came to 181,350 - my fix/up coast and
other variables and came to a final of 131,500.Problem !!! she still owes about
80,000.The home is in a good loc. One block away devel.putting in 300/400,000 dollar homes,close to everything 20 min to beach.I beleive if she
trys to hang tough she will go to forcl.What I'm looking for is suggestions on
how to handle this.My contractor and I will look at it on sat I know I'm not
way off on fix/up costs.Hey I thank everyone in advance and all have a great wk/nd

Let me see if I understand this correctly. The property has been on the market for 9 months at $20k ABOVE ARV, in spite of needing some fairly extensive remodeling/upgrades ($30-50k is a bit more than paint & carpet!). Sounds like you're dealing with a seller who simply doesn't understand their situation or the market very well.

Your best bet, now that they have a Realtor, is probably to work through the agent, presenting not only your offer but HOW you got to that figure (Independent CMA, Contractor's Estimate, etc.), and also showing them what cash the seller will walk away with. Mention, but don't emphasize, the risk they're facing of losing their home and ALL their equity if they don't act relatively soon. And then hope they come to their senses.

If they reject your offer, keep an eye on the property and maybe resubmit it every couple weeks (I wouldn't raise it any without a counter offer) as they get closer to losing the home. Worst case, show up at the auction and snag it for, $80k.

[joseph44]

Thanks for the advice,the only thing I don't know how to handle is the 80,000
she is upside down on .The home needs work she started but did very little.
That is why I feel ok with the offer tomorrow my cont/and I will look at it,I'll
let you know just what must be done.Thanks again all and have a great wk/nd.

[brianb_cobbres]

So you are saying she owes 80k above what you are going to offer? Please tell me I am reading this wrong.

If that is the case, then dont waste you time. I guess you could look into doing a short sale but that is a pretty large discount. Sounds like the sellers best bet would be to list it as a fixer upper at a price that is just enough to cover the mortgage and her selling expenses. 230ish?