Thought? A rent analysis of this particular area ranges from 1750-1850 making the average $1873. Based on a 6% cap rate which is low the value of this property is $380K. Since they gave a value range of 500K-562K they are looking to lock a potential sucker in at 528ish.
Instead of meeting with the agent, call title companies ask them to run a property report on this property ~public information isn’t America great! Of course mention you will use them if the deal goes through ~makes the report free!
Now this is the info you will use for your offer~ the report will tell you any liens on the property 1st 2nds and property taxes allowing you to know exactly what the banks are owed on this particular property~ Then call the agent back and go in to the property and evaluate cost for fixing it up.
Based on the amount owed on the property, minus the work the property needs. Using comps for the area, the amount owed, minus the work needed= price.
Side note on shorts ~be prepared for a long process especially if you plan on low balling.
Low balling is an over used term similar to “I love you” and you will begin to see it even more loosely used as this thing unravels. Truth is a ‘low ball” is a mathematical process and when used correctly and in the right environment it can land us a deal.
