Home Buyers:?
April 4th, 2010 by admin
We are very interested in a fixer-upper that is listed at $76,900. We placed an offer of $68,000 on Wed. and just found out today that our offer was rejected. We would like to place another offer, but are unsure how much more to go up. We are thinking $71,000. Any Ideas? (We are planning to pretty much gut this house……it has ben a rental property)
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depends on what area of the country you live in, and what completely remodeled homes in the area are selling for, and/or what your rental-income would be once it is fully remodeled.
Ask for $73000 and for them to pay closing cost……………….
If the guy didn’t counter-offer, he/she probably wasn’t impressed with the offer. At the same time, you hate to pay too much.
I think 71k seems reasonable, and hopefully if he doesn’t like it he’ll counter.
Meet them half way. I use the 1% rule. You want to buy a rental house that will rent for 1% of the purchase price. So for example, in your situation, in order to pay $71,000, the house would need to rent for $710 per month. We have been very successful with that formula.
Good luck.
Housing prices are tanking in many areas – it will totally depend on location or the location or maybe even location.
$70K in Ohio or upstate NY maybe overpriced but $70K in coastal Calif would only come from a fairy godmother.
Where are you talking about ?
Like the previous person said, it all depends on the market in your area. But I would offer 5000 below asking brice. so come back with a counter offer of 71,900.
Thats what we did. seller was asking 174,900.. we offered 169,000 and the offer was accepted. it all depends on how bad the seller wants to sell as well. And try not to have too many conditions on the sale either.
good luck and happy househunting!