Before meeting with the seller, make sure to do your homework.
You should be understanding of the surrounding area and the homes recently sold. I mean in the last 6 months, to have a decent judgement of the current market value.
I go ahead and find comps that are as similar as possible, to the home in question.
Usually try and find 3-4 homes at the least and then find the mean price per square foot.
Then take that number and multiply it by the square feet of home in question.
You should also call a relator that is selling a home close to the one you are looking at and pick their brain.
You should ask what kind of price they think a home with your footage can sell for. You should always throw in there, that you will be looking for a realtor to sell the home. That will most likely get them to help you with what ever kind of questions you have.
After you get a the median number and found out your ARV estimate. Do the math on how much closing will be for when your buyer purchases it and sells it again. Add a realtor fee for when your buyer sells. You need to add those rates in the equation or it will kill your profit.
You should have the knowledge of how much everything costs for repairs that maybe needed. If you are unfamiliar, call around to some licensed Contractors and ask them what they would charge you on certain fixes. Practice is key and doing your homework is the ticket. When you do the walk through you should be calculating as you go and taking costs off the top number.
Then before you summit your offer make sure to remember take off the most important number, your profit.
Doing your homework and being prepared before you do the walk through is vary important. You want to be knowledgeable and a solution to the sellers problem. You may not give them an offer the first meet up but just incase, you will be ready and accurate. Renegotiations are a killer to a good deal. Don't let it stop you from going through the home if you must before you do homework, but be hesitant to make an offer. You never want to shoot yourself in the foot and leave meat on the table. Every situation will be different in some way or another, but you should be prepared to each and every single one.
I will try and put up 4-5 tips a week. Let me know if anything every helps you. Or if you have any suggestions or comments please let me know. I am an avid investor and only want to learn more!
**Legal Disclaimer:
This is only my opinion, make of it what you wish. What does this mean?
It means it's not advice nor recommendation to either buy or sell anything!
It's only meant for use as informative or entertainment purposes.**