Hey DG Fam,
I have a property under contract in the ATL for about 2 weeks now & it's not looking promising at all. The issue is the asking price & the ARV. See details below...
4Br - 2Ba SFH
ARV - 110K
Cost of Repair - IOK
Asking Price - 55K
Equity - 45K
Sqft - 1158
Lot Size - 5001
Built - 2004
Here is the problem...when I asked the seller how he arrived at 120k for the ARV, he told me by comps. I ran the address through zillow & it came back with an estimate of 110k. Looking at the #s it looked like a good deal so we went forward with the contract. Now, I've gotten a few responses about the property but they were all curious about how I arrived at the ARV of 110k. I told them by comps & they were saying that the ARV is inflated.
I recently ran the address through Dean's totalviewrealestate & to my surprise it came back with an estimate of around 54k...that's 1k less than the asking price. I told the seller about what I've discovered & he is saying that he is not budging on the asking price or else he'll be losing money.
Now looking at the #s it seems as if there is no equity at all in this deal if I don't drop the asking price. DG Fam, what do you think I should do with this deal?
"A Winner Never Quit And A Quitter Never Win!"