What are investors really willing to pay for homes?

Asked by Janine Mazzuto, Lakeland, FL Thu Jan 10, 2013

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Milton De La…, Agent, Lakeland, FL
Thu Jan 10, 2013
Hi Janine,

It depends! Some local investors paying "all cash" will use a popular formula like this one:

Purchase price = Repaired Value x 70% - repair costs.

Example

Repaired value =$100,000 (this is what the home would be worth in good, repaired condition)
Repair costs =$10,000

then,

Purchase price = $100,00 x 70% -$10,000 = $60,000.

Of course, many other "investors" do not use this criteria, or even any "formulas." In fact, I know some which sometimes pay/offer as much as the full repaired value!


Milton De La Cruz
Certified Distressed Property Expert (CDPE)
Real Estate Owned Specialist (REOS)
Lakeland Homes & Realty, LLC
Lakeland, FL 33813
Ph: (863) 248-7260
Fax: (877) 580-4068
http://www.LakelandHomesAndRealty.com
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