It depends! Some local investors paying "all cash" will use a popular formula like this one:
Purchase price = Repaired Value x 70% - repair costs.
Repaired value =$100,000 (this is what the home would be worth in good, repaired condition)
Repair costs =$10,000
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