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Hi Jackie; Have a couple considering using our HBS offer. I have attached a home inspection report done on 8/22/2016. The duplex is being rented out. The 2b/1ba unit A for $1000 per month, and Unit B to a section 8 tenant for $1000 a month is a 1b/1ba. Two bdrm is 1k sq ft and 1bd is 701 sq.ft. Duplexes are a rare find in San Diego so very few comps. Most comps showing recent sales in the $400-500K area. Owners have received an estimate from a Renovation Realty company of 36K for rehab cost, Suggested pricing without rehab by brokerage is $360-390K. Owners have a mortgage balance of approximately $250K. Owners would like to clear $125-150K, or nothing lower than $400K total sales amount. Give me your insight on how I could construct this deal please? Let me know when I can send the inspection report to you Jackie.
HI Abe
I don’t need to see the inspection report.
If the sellers insist on getting $400k and a real estate company things the list price needs to be $360k-$390k, I don’t see how you can make any money on this deal unless you can get the sellers to come down on what they expect to get at closing.
Sounds like the sellers want retail and they are not very motivated.
The only way you can make a profit when doing a Highest Bidder Sale is when you are working with a motivated seller who is willing to take a discount for a fast sale.
If the sellers sold using a real estate agent, they would pay an estimated 6% or $24,000 based on a $400k sales price.
If you’re willing to get the house sold for a flat fee of less than $24,000 it may be appealing to the seller.
Would you do a highest bidder sale for a flat fee of $12,000 or $15,000? Would the sellers agree to this?
Would the sellers accept a cash offer if it were less than $400k if it could close in 2 weeks?
If the answer to the last two questions is yes, then you can put a deal together. Make sure you get everything in writing.
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