If you’re trying to buy as an investor, why not try an offer at what the 3br homes are selling for or a little less. You’re trying to get a deal here , right?
The extra 2 bedrooms were probably added because the seller needed them. Fine. He built them and used them and got his money’s worth from them. That’s his problem now. There are lots of overbuilt houses in neighborhoods. Thet’s the choice of whoever overbuilt them. Not your fault. The seller will have little possibility of recovering their extra money spent. The area is only worth what it is worth. Their reward for overbuilding is the use and enjoyment they got from the house while they had it. Keep your bids in the area that works for you. To overpay for an overbuilt house is “not prudent”, IMHO.
I am in negotiations to purchase a home in a neiborhood where most of the houses are 3br/2ba. It is fairly easy to get the market value for those homes. The problem I am having is getting a good market value for the paticular home I am purchasing in that neiborhood. The home I am purchasing is a 5br. The owners added 2brs over the past 10 years. With the two additional (big) rooms and the added square footage, the house has to be more than the
other homes in that area. I usually compare like houses but their are not any in that neiborhood. Do I have to get a appraisal (which I really dont have the finances to do)
or do you know of another method?
I am in negotians to purchase a home in a neiborhood with homes of different sizes (big and bigger). The seller owes a mortgage of $199,000.00, he is asking $220,000.00 (I will definately negotiate a lower price). Once again how do I find the market value? I believe one of the courses I studied stated you should get a appraisal if the house is over $200,000.00. Is this true? Thanks in advance.