It has been great to hear all the support and encouragement from every one over the past few days to get my offer in. I am definitely getting more confident when talking to sellers and with the possibility of an offer actually getting excepted. When I met with the seller last Thursday I told him I would call him back on Monday (today) with an offer and if it was in the ball park we could setup another appointment so I could bring a contractor in and come back with a final offer. When I said I’d call him on Monday he was like, or Tuesday or Wednesday we know how Monday’s slide. I promised him I’d call on Monday though and I did.
Alright Alright, I’ll get to what he said about my offer. I told him I couldn’t meet his 400k asking price, but could do something in between 330k and 360k depending on what my contractor found. The reason I gave him a range with my MAO of 330k as the low end was so I could get my contractor in there. My 50k estimate in repairs might be low or high, I really have no idea but the contractor will. DellJacobs asked me a good question…
I have a question. In your calcs you say you are assuming your usual 50 K for repairs. what is that based on? It seems like you have a large unknown in the roof. Replacing the roof will blow the 50K estimate out of the water
The reason why I picked 50k is that after doing some research I figured that would cover the standard bathrooms, kitchen, floors refinishing and other general repairs in a house plus some 50% more for incidentals. I’ll never give my final offer based on that 50k repair estimate, but I use as a starter. If someone has a better methodology like a % of ARV then I’m willing to listen. Hope that answers your question DellJacobs.
Getting back to the offer, Jim (the seller) said he is going to take the highest offer between me and the other 2 contractors that he had in. Two promising things came out of this, one he asked when I could bring in my contractor to give him my final offer and the words “Well sometimes you don’t get what you are asking for” (refering to his asking price of 400k). This tells me he is willing to go below 400k and that the other offers (if he’s gotten them) where lower then mine or about equal. Jim is going to give me a call back when he next plans to be back up in the area because he lives in Virginia.
I’ll report back when I get more information. Thanks again for the support everyone!