Posted by Randy on September 16, 2003 at 14:10:54:
Like I said, make your offer subject to a certified appraisal (sellers expense) and maybe a few other escape clauses just in case? you haven?t said if this ?Your New Home? your buying, or you exit strategy, rental-L/O-flip? How much does he want down and what terms? Will it cash flow as a rental? Do you have a buyer in mind? Questions, questions, questions?
First deal… need some help please! - Posted by Sherry
Posted by Sherry on September 16, 2003 at 13:00:39:
Here’s the scoop on the house: appraised @ $143,500 4 yrs ago. I am unable to find any comps for this. He owes $65,000. He wants to get $85,000 out of it. He is willing to do seller financing. The home has been completely remodeled, no work needed on it. Its a great house. Owner says that almost all houses on road are between 135k - 185k.
Payments & taxes are all current. No liens on homes.
Can I get some advice here on a deal to present to him. and what happens if you can’t find any comps for the house?
thank you
You NEED comps - Posted by Bob-MD
Posted by Bob-MD on September 17, 2003 at 14:45:56:
Without getting your own CURRENT comps, you have no idea what the house is worth or what to pay. You have to do your homework. I would never take the word of the seller and a 4 year old appraisal is worthless. The values could have gone up or down in that time.
Bob
Re: First deal… need some help please! - Posted by Randy
Posted by Randy on September 16, 2003 at 13:49:41:
If it appraised 4 years ago at $143,500 and he?s selling now for $85k? who cares about comps. BUY IT subject to a certified appraisal, it?s a lock at $50k-$100k profit. Buy it before he sobers up and wants $135k (the cheapest price on the road).
Now if he wants $150k ($65k owed and $85k equity) then you need work the numbers. Still make your offer contingent on a certified appraisal (at the sellers cost to be reimbursed at closing), if you don?t like the deal after that PASS.
Re: First deal… need some help please! - Posted by michaela-ATL
Posted by michaela-ATL on September 16, 2003 at 13:21:58:
What is the reason, that you can’t find comps? Is it the largest house in the neighborhood? Where does the seller get his numbers? Has nothing in the neighborhood sold in the near past? Is it the only frame house in between brick ranches?
It sounds like a nice deal, provided the comps are there.
michaela
Re: First deal… need some help please! - Posted by Sherry
Posted by Sherry on September 16, 2003 at 14:04:19:
I apologize that I wasn’t clearer. He wants to pay his note off (65k) AND get 85k out of it. So yes, He wants 150. I still believe that 10-15k could be made here.
Thanks!
Re: First deal… need some help please! - Posted by Arthur
Posted by Arthur on September 16, 2003 at 18:10:49:
Walk away. $10-15k is too thin a deal. What happens when you go to sell it and they haggle? Or you end up holding it for a few months and have to make the monthly payments, and what about all the selling costs etc. This isn’t a good deal, its just a regular sale.
All IMHO of course.