Re: Need some Heads Up Quick!!! - Posted by JimFL
Posted by JimFL on January 31, 2002 at 22:04:55:
As was already said to you, there is some due diligence you need to complete.
I’d be right up front with the seller and tell them you need to verify some things before going totally ahead.
But, in the mean time, you can offer her a sub2 deal, sign a purchase agreement with her, including a clause that the closing is contingent on you verifying all information regarding the house, to your satisfaction.
This way the house is at least tied up.
Get comps, this is important.
Since Yahoo gave you such a wide range, you know this is not too accurate.
Try contacting a local title company and if they won’t comp it for you, try some local RE agents.
Tell them you will be buying this house, and may later need to list it, therefore getting some comps will help you.
If you cannot find someone to give you comps, then go ahead and gather some from Yahoo, and then drive them.
See which ones most closely resemble the house you are looking at, and get them that way.
Not the most accurate, but a ballpark smaller than $88k to $115k.
Get the seller to sign a loan authorization form and find out about the loan status, payments, balance etc.
Check the title, get a title search at the minimum.
Once you get good comps on price, get some numbers for market rent.
You may also want to check out the area and see what other homes are doing.
Are they selling fast?
Is this a house you can sell quickly?
What are your plans with this house?
You should know your exit before you buy.
If all the numbers check out, and you are satisfied with your due diligence, then go ahead and sign her up.
Try to get the seller to cover as many payments as possible after you take possession.
Then market the house like mad.
One other thing I neglected to mention “Yet”, check out repairs, and the status of all major features in the house, like heat, A/C, roof, plumbing, electrical etc.
Are they in good shape?
do they all work?
Will they need anything any time soon?
You can get all this done in a matter of days.
Again, if all looks good, then sign it up, and then market the house hard for sale.
Offer terms, or a L/O, and it should move fairly quick, as long as you get the word out that it is for sale.