Hello DG Members,
This afternoon, I received a call from a real estate broker about a new listing he received that needs a lot of work in a smaller town where the average 2 bedroom home is around $75k. Thus, I decided to drop everything and drive out to take a look at the home.
It is a small 2 bedroom 1 bath home with a garage and a basement. The roof is so bad, it needs to be completely torn off down to the rafters,. In both bedrooms the sheetrock on the ceiling fell in because of the water damage. The list price on this home is $24,900 (believe it or not). The after repaired value for the home would be about $60,000. It will probably need around $25,000 in repairs and updating. I thought about offering $7,500 for this home to give me plenty of margin for expense over runs.
The 2 questions I have are as follows:
1. Do you believe I should make an offer on this home for an extremely low price? If so, why?
2. What would be the most you would offer for the home?
Thanks for your feedback and comments. The broker would like an offer by Monday morning. Believe and Achieve! - Joe
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Joe Jurek CPA