You need to know the market value. I do not recommend buying properties unless you do.
There are several ways to go. Study all the recent sales in the town and see if you can determine a market value. Hire an appraiser. Talk to the appraisers in the County Assessor’s office and ask his/her thoughts on market value of such a property. Talk to a lot of the real estate agents in the area.
It is perfectly sensible to pass up a property if you don’t KNOW that you are getting a good deal. My motto: Better to miss two good deals than get stuck with one bad deal.
I am wondering if you could take a look at a potential deal for me and let me know if it is a DEAL. (I do have a contract on it, the owners are willing give me deed and walk away)
House is located in Elk County PA. Owners have already moved to another state.
It was listed with a RE Agent (not any longer) for $60,000
They owe $47,000 on the house.
I am unable to comp the house but will try a few REA’s (dataquick does not cover Elk County), but I do know that there are 3 other houses for sale in the town…they have one less bedroom and slightly less sq footage. They are “Listed” in the mid $20,000 range and this scares me a little.
I am located a few hours away from the house and do not have intimate knowledge of the town.
There are, it seems, many L/O buyers and CFD buyers in the area, but most have very little available for a down payment. ($1,000 - $2,000)
What questions should I be asking and what information should I have to decide to move forward? Like I said, I have the house contracted but have weasel clauses in case the deal is indeed NOT a deal!