Posted by BIGDADDY(MD) on July 02, 2002 at 16:38:36:

I agree with Phil.
You should also explain to him the cost that he is going to encounter when he sells and especially if he sells via a realtor.

On a $199K sale price at 7% commision (common for my neck of the woods) your looking at a realtor commision of $13930.00 plus his portion of customary Closing cost of approximately 2% to 3%(another $3980 to $5970).
Not to mention all of the payments that he is going to have to make while this process is taking place. I would say at best another two months worth (assuming an almost immediate sale the day he places it on the market) and more than likely probably another 3 to 4 months worth of payments and association Fee’s. I hope this info. helps you. Good Luck.


Posted by Cary on July 02, 2002 at 15:30:52:

I received a phone call from a seller who was transferred out of state. He has a 2 Bedroom condo in my area he bought in February this year and his asking price (to break even)is $199,900. His mortgage is $178,000. Payment per month is $1423 + association fee of $130/month. he wants to sell it for the price he paid to break even. Estimated home value is $206,500. He is not sure he wants to work with a realtor yet he is hesitant to pay the monthly payment if I agree with him to lease/purchase while I look for a tenant buyer to place in the condo. SO, since he is already living out of state what is the best way for me to approach this deal?

That’s easy … - Posted by Redline

Posted by Redline on July 03, 2002 at 18:19:56:

As Phil said … tell him to go and get a Realtor, oh and by the way be prepared to bring a check to close because what you get probably wont cover the commission and what’s owed.

And this’ll be AFTER he writes 3-6 checks for mortgage, taxes, insurance and fees while he waits for that deal to close.

Are you sure you can even rent this for enough to make it worth while?


Re: HOW DO I APPROACH THIS ONE? - Posted by phil fernandez

Posted by phil fernandez on July 02, 2002 at 16:00:55:

Sounds like he bought at the top of the market. It will be your job to convince him of that fact. I’d do a lease option at the mortgage amount of $178,000.

If he doesn’t like that then he’ll have to start writing out $1,423 checks for the mortgage and another monthly check of $130 for the condo dues.

Hope you know what you can get for rent and an option strike price.