Posted by Bud Branstetter on March 11, 2000 at 20:52:28:
Similar properties mean that the square footage is within a couple hundred sqft, the number of bathrooms, and other amenities are the same, the financing is the same, the age is similar, etc. Don’t get traped by a comparative market analaysis done by a realtor that dumps everything in the area that has sold into one pot.
How bout this deal. - Posted by Eddie P
Posted by Eddie P on March 11, 2000 at 05:19:19:
Heres the situation. Owner wants to sell (They called me)
Asking $125,000.00
Comps $ 92,020.00
The house was built in 1996 and the owners have a 1st and a 2nd on it.
The first is $87,097.00 they put $0 down when they purchased
The second is $34,000.00
Total of both = $121,077.00
I am new to this but no rocket scientist degree required here, (It don’t look like it’s worth the time)
Any suggestions from another point of view? They say sometimes we fail to see opportunity. My question is (Does anyone see any opportunity here?) The reason I ask is because these people say “You Buy Houses” now why won’t you buy mine? I tell them yes I do buy houses, but I am no fool either! I do this to make extra money not pay extra money! Help me out guys!
Thanks,
Eddie
Re: How bout this deal. - Posted by phil fernandez
Posted by phil fernandez on March 11, 2000 at 10:38:43:
The idea is to make money not to have to bail someone out who has an overfinanced house. Don’t waste your time with this one. There are too many good deals out there.
Re: How bout this deal. - Posted by Robert McNeely
Posted by Robert McNeely on March 11, 2000 at 07:12:03:
Also be careful of sellers showing you an appraisal, gotten when the second mortgage was obtained. Second mortgage appraisals can be very high, only to justify the amount of the loan.
Re: How bout this deal. - Posted by JPiper
Posted by JPiper on March 11, 2000 at 05:47:49:
I was struck by your comp figure?..$90,020. Where did that $20 come from? Talk about accuracy. It almost looks like you averaged something?.which I wouldn?t suggest if that?s what you did.
Anyway, assuming your numbers are right, the only question remaining is ?what are the payments on those loans??. If those payments are something that is marketable and the house is in good shape, and owners aren?t in arrears, you might be able to tie the deal up with a lease-option or subject to and assign it to a retail buyer. It?s a long shot, but something you might want to check out.
Otherwise, tell the people you?re in business to make a profit. What I wouldn?t tell them but we all know is the truth, is that you?re not the savior of every Tom, Dick, and Harry that over-financed his house, and spent the money.
JPiper
Averaging method - Posted by Eddie P
Posted by Eddie P on March 11, 2000 at 13:48:52:
Hi JPiper;
That comp figure I listed was from an averaging system. I took all of the similar properties in that area that sold recently and did the ad em up and divide strategy. You stated that you would not suggest this. What way do you use to come up with a comp figure? , and should I be using your system? I read a how to article by JP Vaughn and she stated that one should take all similar properties that sold recently and to take the high and low sales prices and cross them off. Then take the remainder of the comps and use them to figure your numbers.
Did I read something wrong?
Please Advise
Thanks
Ed P