Falls Ferguson Rd

Listing Price: $89,000
Sale Price: $47,000
Rehab: $80-100,000

AVR: $250,000

We Buy Houses - Falls Ferguson Rd - Acquisition

What are a few things that scare most investors, termites, well and septic issues, water damage, foundation problems, poor drainage? This house had everything and out offer reflected the work that would be required. This house will take $80-100,000 in repairs. Our original offer was $44,000 and it was rejected.

The house went under contract with another buyer and fell through after inspection. We made another offer – same price – $44,000. Our offer was again rejected and the house went back on the market.

It went under contract again and fell through after inspection.We made another offer – same price – $44,000. It was a cash offer with no inspection contingency. That was done before the first offer. Unfortunately, our offer was again rejected and the house re-listed on MLS.

Another buyer made an offer and the house went under contract. Again, it fell through.

This time, we got a call from the listing agent, “What will you really pay for the house?”

You should be able to guess my answer, “Forty-four thousand dollars.” Then I said, “I’ll write an earnest money check for the full amount and I can close tomorrow.” Of course, no attorney could close that quickly but it sounds good to let the seller know you’re serious and ready to move fast.

A few hours later, the agent called to say they would take $47,000 and we signed a contract.

Could we have gotten the house for less? Maybe. Could the seller have gotten a higher price? Maybe. However, this was a price that worked well for everyone involved and left plenty of money to be made on the sale.

The point is this, never let the list price scare you away from a house. The list price isn’t what you’re going to pay. Never be afraid to make an offer, if the numbers work. The worst that can happen is the seller says nothing or declines the offer.

At We Buy Houses, the only ridiculous offer is the one that’s never made. Our discount was $32,000… only because we asked.

Never make an offer based on the listing price. Only make an offer based on the numbers; cost to rehab and After Repaired Value (ARV), and never think your offer is too low. It’s not. I promise.

Greg J. Gardner
We Buy Houses. ME

Acquisition – 422 S. Gaston St

Estimated ARV – $149,000

Rehab Cost – $45,000

List Price – $89,000

At first glance, this might not seem like a deal to most people. After Realtor fees and unforeseen expenses, this property could LOSE money. That’s what most people would see, unless you realize “list price” isn’t the price you offer or pay. Of course, “rehab cost” will usually miss at least a few items you weren’t expecting.

My first offer was $39,000 and the property went under contract for $44,000. Just because the asking price was nearly $90K, doesn’t mean anything. The offer price must be what YOU can afford to pay. It has nothing to do with value or asking price.

Actual rehab costs, including buying an enclosed trailer and a few new tools, were a little more than $55,000. After purchase, rehab, and holding cost, the property cost $105,000. With 6% Realtor fees and closing costs, the estimated ARV of $149,000 would leave $33,500 profit.

This wouldn’t be a bad deal and provides an ROI of 31.9%.

We did better…

The actual sale price of the house was $169,900 with sellers paying $5000 in closing costs. The check was more than $152,000. Thats a profit of $47,000 and ROI of 45%.

The house was on the market three days when the full price offer was received.

Any deal where you walk away with nearly $50K profit can’t be a bad one.

Remember… list price has nothing to do with the house value.

Remember… you offer what the house is worth TO YOU.

Remember… don’t let the list price determine the price you offer.

We Buy Houses ME Rehab