I learnt this weekend that one way to price a property for wholesaling is to use the wholesale comps from MLS, i.e. the lower range of prices. So considering a simplistic example of a property with an ARV of 100k and a wholesale comp of 60k, we offer 50k to make a cut of 10k. Right?
1) Do we do this *all) the time even if the house is in excellent condition with no amount of repairs whatsoever needed? I wonder, what is the incentive for the seller to get rid of the property at such a low price, knowing very well that its value is 100k. I fail to understand this point a bit.
2) What is the difference between pricing a property that is in bad condition and dong that to another property that is in top-notch condition?
Thanks,
Abdul
Replies
Thanks Alex. Then I guess those type of properties may not be idea for rehabbers/fix and flippers but perhaps those interested in rental properties.
if properties selling at wholesale needed work, but yours doesn't, you can come up on price.