Posted by Steve Henry on May 31, 2000 at 14:23:19:
Thanks folks, what a wonderful resource this board is!
Steve
$100,000.00 on the table? - Posted by Steve Henry
Posted by Steve Henry on May 31, 2000 at 11:30:54:
House is huge-4000 sq. ft. and a 1000 sq. ft. daylight basement. It’s in immaculate condition in a highly sought-after neighborhood. The husband transferred out of state and left the wife to sell the house.(can you say motivated)
A recent bank appraisal has a value of $442,000.00. It’s a FSBO and they’re asking $342,000.00.
I think I see $100,000.00 on the table…am I dreaming? The comps I ran from Octitle are sketchy to say the least.
In this area(Lake Oswego, Oregon) it’s a hot mkt. How long will it take to find a buyer by offering seller financing and then selling the note? I plan on a simultaneous closing. Any thoughts you can share will be appreciated.
Steve
Re: $100,000.00 on the table? - Posted by Mark-NC
Posted by Mark-NC on May 31, 2000 at 13:23:38:
Steve,
Bud is right. That is a tougher and riskier price range to deal with as far as Selling the Note at close. In fact the Note buyers are so reluctant to do them you might be better off going to a good mortgage broker instead.
And generally buyers in that price range are more sophisticated and will not go for the higher rate needed for a note purchase. I don’t want to put a cramp in your deal but like Bud said it looks more like a possible lease option candidate than a note deal.
Good luck!
Mark
Dream on - Posted by Bud Branstetter
Posted by Bud Branstetter on May 31, 2000 at 12:06:20:
Steve,
The typical property has the top 10-15% of value that is hot air. On a higher end property that can increase. What I mean by that is the vaue and what it will bring in a quick sale are very subjective. The longer the time to market the closer to the stated value you can get. The higher end house has much fewer people to market too. If 80% of the houses within a mile radius are not in the same class you have an anomaly. Even if the property is consistent there are still fewer buyers that can afford those houses. How much are you willing to spend on marketing. Ads, brochures etc can run several thousand. Add the time to market to realtors and HR people at surrounding companies.
Great idea to do a simultaneous close. However, note buyers look differently on jumbo notes above the 250K-300K range.
Is it worth making any payments-No Way. An option-if it doesn’t cost but a few dollars-sure. You have to be better able to market it than the owner. More than a sign in the yard and a 2 line ad in the paper. Helping the seller sell is another approach. Raise the price, have them cooperate in showing, and sell with the owner financing. Find out how much they can carry as a second and how much a note buyer will buy. Interest rate will of course depend on the buyers credit. As most deals you have to find out what will solve the sellers problem. Maybe even a L/O could work.