- Purchase a home at a Trustee’s Sale for $48,000 and change at a time said homes are selling in the $50s in the same neighborhood.
- Fix up said home, pouring however many thousand dollars were necessary
- Put said home back on the market at $68,000 – roughly 25 to 30 percent above current market value.
- Inform potential buyers that the seller will not accept any offer below 98 percent of list price, or just slightly less than 25 to 30 percent above current market value.
- Inform potential buyers that since the sellers can’t control the appraisal, the sellers will not adjust the purchase price on a financed offer should the appraisal come in below the offered price – say, for example, at market value.
- Send buyers’ agent a spreadsheet of all of the sellers’ properties, the vast majority of which are equally overpriced.
Here’s a hunch. If a sub-$100k home has been on the market since mid-October in these market conditions, it’s either shredded or miserably overpriced. There are no other options.
No worries, though. In a few years we just may have appreciated enough to make that price 25 percent above the current market.
Hopefully the seller has time.