Offer and Valuation

The offer math in this SOP is a working starting point that Jason is still reviewing, so treat every number here as a figure to confirm before quoting a seller, not a locked formula. This is how KOD arrives at an offer number for a pre-foreclosure property: the comps, the after-repair value, the repair estimate, and the two pricing paths, cash/as-is versus terms. Walking into an appointment with a grounded number instead of a guess is what makes the offer step in sop-kod-close-appointment land instead of stall.

• Before any appointment where an offer is going to be presented to a seller
• A lead has moved far enough through enrichment or scoring that it's worth running real numbers, not just a rough badge estimate
• Re-pricing a deal that stalled, went cold, or came back after a first offer didn't land
• Prepping the range to hand off to whoever is running the appointment, whether that's Jason in person or David online

• Comparable sales (comps) pulled for the property, both as-is condition comps and after-repair-value (ARV) comps
• A rough repair scope, even a walk-by estimate is enough to place the property into a repair tier
• Current equity position known or estimated, which ties back to the badge scoring in sop-kod-cadence-by-badge and the enrichment fields in sop-kod-lead-enrichment
• Access to your cash buyer list to pre-shop the deal, which connects to sop-kod-disposition-assign
• Know whether a foreclosure sale date is already set, since that changes the payoff math and the clock you're working against

• Both the as-is/wholetail number and the flip number were calculated before the appointment, not improvised at the table
• The repair estimate is tied to an actual observed or reported condition, not a default middle-tier guess
• Equity position was checked against the 50 to 60 percent minimum and the roughly $100k gold-deal marker
• The deal was pre-shopped to at least 3 cash buyers before the final number was locked
• If a sale date is set, the attorney fee add-on was built into the payoff math
• No raw number was given to the seller before the options and house-walk sequence in sop-kod-close-appointment was complete

• Problem: The as-is and flip numbers are close enough that it's unclear which one to lead with. Fix: Let the buyer comfort range from pre-shopping break the tie. Lead with whichever number your actual buyer pool is more comfortable moving on quickly.
• Problem: No repair scope was ever walked, so the tier is a guess. Fix: Use the cosmetic tier as the conservative floor and flag the file for a real walk-through before the offer is finalized. Don't build a flip number off a full-gut guess with no eyes on the property.
• Problem: Equity doesn't clear the 50 to 60 percent minimum but the seller is highly motivated. Fix: Motivation doesn't override the equity floor. Route the lead back through sop-kod-lead-enrichment and sop-kod-cadence-by-badge to confirm the badge and equity numbers before spending appointment time on it.
• Problem: A sale date got set after the numbers were already run. Fix: Re-run the payoff math with the roughly $3,000 to $5,000 attorney fee add-on before presenting anything. Don't present a stale payoff number against a live sale date.
• Problem: Pre-shopping the deal came back with buyer offers well below your formula number. Fix: Trust the buyer comfort range over the formula. The formulas are a starting point to confirm, the market is the actual answer.