Dear Edgar,
Our purchase decisions are based on our own evaluation of a property, current market conditions, and its value as an investment. They are not based on what the current owner originally paid or how much has been invested in improvements.
When we evaluated the property, we saw a wood-frame duplex that had been converted into a single-family home. While we recognized improvements such as the newer roof, based on the property’s condition, configuration, tax assessment of approximately $14,000, and publicly available valuation estimates under $35,000, we did not arrive at a value exceeding $100,000.
Without knowing what you had spent on the property, we made an offer of $45,000 based on our evaluation. It was only after receiving our offer that you explained the improvements you had made and indicated that you found our offer insulting. From our perspective as an investment buyer, the conversion from a duplex to a single-family home also reduced the property’s investment value.
We make offers based on what we believe to be fair market and investment value. We have never represented that we will pay the highest possible price for every property. In many cases, the highest price will come from an owner-occupant purchasing a home for personal use. We purchase properties for investment purposes, so our valuation necessarily considers factors such as rental potential, configuration, condition, renovation costs, and expected return.
We are particularly concerned that your review states that we offered $25,000, because that is factually incorrect. Our offer was $45,000. Publishing inaccurate information about our company is unreasonable and, when presented as fact, may be potentially defamatory.
We completely respect your decision not to accept our offer and your right to seek a higher price elsewhere. However, we do not believe a one-star review is warranted simply because our valuation was lower than the amount you wanted for the property. Declining to overpay for a property does not mean that we acted improperly or treated you unfairly.
We wish you the best with the property and hope you are able to achieve the price you are seeking.
Sincerely,
LOYD Holdings.
