What do you think would be a good offer for this house?

[timandlisa1208]

We are looking at a house that has been vacant for 2 years. no running water and will need a total rehab. The comps in the area are averaging around 315000.00.
They are asking 199,00 fo r the house. They are only taking offers till friday.
We were thinking about 140,000 do you think that is too low?

[welowe]

While some may disagree. the general formula is:

After Repaired Value times 65% minus Repairs equals Maximum Allowable Offer.

Without knowing the repair estimate in your case, no one can give you a good number as a purchase price.

[PaulBroni]

There's no way to give a reasonably intelligent answer without having more information.

What do you think the rehab will cost?

How confident are you in your ARV? How long would it take to sell at that price?

Are there a lot of other bidders or only a few? Is the property listed? How did you find out about it?

When you say "no running water," are you just saying that the water is off? I assume a $300K house has indoor plumbing...

Are you able to close fast?

Do you know what, if anything, is owed on the property? Maybe they owe $195K and that is why they are asking that amount. If that is the case and there's no short sale opportunity, they are unlikely to accept less, at least not willingly.

[timandlisa1208]

im thinking rehab is gonna be about 30,000 - 40,000. it needs a total rehab.
the arv's came from a realtor so im pretty confident about them. they houses stay on the market there about 45-62  days.
i dont know if there are other bidders , it is listed with a realtor.
the water is turned off it does have plumbing.
we are able to close fast.
i dont know what is owed on the property or why it has been vacant for 2 years.

[PaulBroni]

How big a house are we talking about? $40K might not be that much money for a "total" rehab.

Which Realtor gave you the ARV? The listing agent or someone who works with you? Frankly, I am not sure it matters. I think I would need to do my own homework to come up with those numbers.

Is this a bank-owned property?

[timandlisa1208]

hello, it is a bank owned property.
the house is about 2000 sq feet. the yard needs to be done too.
it is not the listing agent that gave me the comps it was another realtor that we work with.