Last week a lady contacted me wanting to know if I could tell what a "Junker" (ie. a house in disrepair) in Winter Haven was worth. I suggested to her that what she needed to do was to get an construction contractor's estimate of what it would cost to put the home in livable condition for her husband and her. She said the house has not had AC for a number years and mold and mildew was present on the interior along with many other needed repairs.
I told her that my role in this would be to estimate the value of the property after all the repairs were made. Also, I suggested that she should include some money in addition to the contractor estimate for time spent managing the repair project and for closing costs in getting a loan. The difference between my estimated value and the expenses would be the amount her husband and she should offer for the property in the current condition. A mathematical example is shown below.
$70,000 My estimated value as repaired
-$30,00 Construction contractor estimate for repairs
-$ 3,000 Buyer's fee for managing the repair project
-$ 7,000 Buyer closing costs
$30,000 Maximum that should be offered for property is current condition
A way to get this project financed is by getting an FHA 203K loan which is a program for property repair projects.
The lady was unsure if her husband and she were really up for project such as this. She was going to get back to me if they decided to proceed. I have not heard from her.
Thank you, we'll be in touch!