In the last few months we have been negotiating some incredible deals for our buyers. I titled an earlier article that "The time for investors to buy is now." I need to edit that title a little bit that the time for "buyers" to buy is now. Sales are very slow right now, many sellers are desperate, some sellers are willing to walk away. I am seeing many motivated sellers willing to sell at prices from 2003 and 2004 right now.
This fourth quarter of the year is where many sellers especially REOs (banks that have foreclosed on a property) are willing to dump their property before the tax year ends. Here are some numbers from real deals that we have sold recently.
1. Altamonte Springs 3/2/2 block house. Comparables show it was worth $210-220,000 in move-in condition. The house needed about $20,000 worth of repairs - new roof, new AC, update kitchen and baths. This was an out of state seller situation that I bought via a referral from another Realtor. I bought this one for myself and negotiated the price down to $133,000 and then assigned the contract prior to closing to another investor.
2. College Park 3/1/1 block house. Comparables show it was worth $240-250,000 in move-in condition. It was listed in MLS for $249,900 for several months. This was a probate situation and the heirs were fighting amongst themselves. The house needed a roof, had extensive termite damage, and the kitchen needed updating all to the tune of about $25,000. We were able to get this one for $150,000 - THAT'S RIGHT, $100,000 UNDER LIST PRICE. 2 months later it is all fixed up and the owner just listed it with us for $224,900 (priced 10% under market for quick sale).
3. Southwest Orlando 4/3/2 block house with pool. Comparables show it was worth $220-$230,000 in move-in condition. It was listed in MLS for $219,900 for nearly 6 months. The tenants were moving out and the landlords were professional people and just plain old tired of dealing with it. The house had major roof leaks and the tenant's dogs had basically destroyed the inside. It probably needed $25-30,000 in repairs. We negotiated the price down to $140,000 - NOTICE WE GOT IT FOR $80,000 UNDER LIST PRICE.
4. Apopka 4/3/2 block house with pool. Comps show it was worth around $400,000. It was listed in MLS for $399,000. House was in mostly move-in condition except for a few cosmetic items. We negotiated the price down to $330,000 for our buyers. This was an end buyer who would owner occupy the house.
We have other deals like this in the works right now that have not closed. If you want a skilled deal finder and negotiator to assist in your deals, please give me a call. Now is the time to buy. Make an offer, you might just get a great deal.
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Rob Arnold, ABR, CPL, GRI, Full service and investor friendly Realtor, Managing real estate broker, Licensed mortgage broker, Notary Public