Determining the value of a house just by asking the right questions.
The following is a post created by Phyllis Rockower in 2014 but is still relevant. Her son, attorney, and real estate investor, William Bronchick, is continuing her blog as per her wishes to continue to educate real estate investors.
By getting the right information from a FSBO on the phone, you can save yourself a lot of gas and time. There is no point in going out to see a house that does not make sense as a deal. Even if they are willing to cooperate, it still may not be a deal.
When you are on the phone with a FSBO you are trying to get info about 3 things:
- The condition of the house
- The condition of their lives
- The condition of their mortgage
You want to be able to determine before you leave your house whether or not it’s a deal. One item is determining the after repaired value of the house. The 2nd item is how much money will be needed to bring the house to that condition. If you ask the right questions, you can get a pretty accurate idea.
First, you ask them:
When was the house last remodeled?
Many times they don’t know so you have to ask further questions.
1. Year built?
2. Are the windows tic-tack- toe style wood windows?
3. How old is the roof? Leaks?
4. In the kitchen, where does the hot and cold water spout come out of? (wall or sink) If it’s from the wall, nothing has been done and you will have to remodel.
5. What color is the plumbing pipe under the sink in the kitchen and bathroom? (if it’s aluminum or copper and not shiny new, then nothing has been done. Upgrading is PVC pipe (white. Green or black).
6. Do you have circuit breakers? (if not they will be glass fuses. this is an expensive upgrade.)
7. How old is the a/c unit? Is it central air?
8. Is the heater a wall or floor unit or central?
9. When has the carpet been replaced?
10. When is the last time the outside and inside were painted?
11. What about the lawn?
We sure hope that helps. Don’t run out unless you have decided how you can make money here and if they are on the same page as you are. Most times it’s a follow-up situation.