The Story: We track newly listed and newly priced bank owned properties in MLS. This one was listed for $63,000 for 64 days. We made an offer and negotiated to a $50,000 sales price.
If you look at before and after photos you will note this house needed a lot in renovation including foundation repairs. For a total renovation of $53,720 and took about 2 months to complete.
We marketed this home by listing it for sale in the MLS and holding 2 open houses and inviting in all the neighbors personally with postcards hand delivered by us to their front door. We also put a ton of open house signs up on the major street to the subdivision. The very first couple who walked through ended up being our buyers and writing a contract on the home for $129,900 2 weeks later.
All in all we spent $50,000 on purchase, about $900 in holding costs, about $5600 in settlement fees, we got by with no Realtor Commission on this one for a total profit of $19,586.36.
We cut the sale price down to the bone by a considerable amount, but we really wanted to help these people into a home and we wanted a fast cash sale, note before we closed these people we had 2 other back up offers, actually that would have paid a bit more. But as they say a bird in the hand is worth two in the bush and we did not want to wait for those two higher priced offers in the bush because we may not have landed them as easily.