Possible First Deal? Need Opinions, Please. - Posted by Steve (FL)

Posted by JoeB(Atlanta) on February 01, 2000 at 21:59:45:

Steve, sounds like a good deal & offer. Keep in mind that on these old houses we usually have to update/all new plumbing, central heat/air and electric to conform to the new city codes…if you’re permitting it w/the city.

Food for thought,
Joe Brillante

Possible First Deal? Need Opinions, Please. - Posted by Steve (FL)

Posted by Steve (FL) on February 01, 2000 at 11:53:35:

SFR built in 1949 (vacant)
2br, 1ba, 3rd room could be br; 1372 sq. ft.
1 car detached CBS garage
Good roof, asbestos shingle siding

Needs:
carpet
paint i/o
possibly furnace (don’t know if it works yet; has window unit a/c)
landscaping
new switches, outlets and (1) ceiling fan
could use new windows, too

Lower income neighborhood, but in “historic distric” and safe. Asking $99,900. FMV on after-fixup $115-$120K.

I figure $8K on repairs. Offer $75K, seller pays all closing costs; contingent on title, inspection, etc. Don’t know about the existing fin. yet, but I’ve been pre-appr. for $100K. (Comps. range from 85-95 per sq. ft.)

Whaddya think, gang? Thanks.

Re: Possible First Deal? Need Opinions, Please. - Posted by James

Posted by James on February 02, 2000 at 01:35:51:

Hi.
Since the house was built in a historic distric in '49 I don’t know if this would apply but do you have to deal with a “Historic society” for updates or rennovations.

I have and I can tell you it can be a real pain. I was an electrician so it did not affect me too much but the other contractors had to give detailed plans on all the work they did. All material had to be approved so that the building would match it’s original state. You couldn’t just go in and throw some paint on and some new switches in they had to match the original
specs all the way to the color of the paint and the wood or tile used. If a floor was wood forget about carpeting. Anyway… you get the picture! What a pain.
Something to think about.

Re: Possible First Deal? Need Opinions, Please. - Posted by Sheldon B(North Dakota)

Posted by Sheldon B(North Dakota) on February 02, 2000 at 01:06:04:

I am currently doing a deal like yours right now. To get a more realiable asking price - Get the city and then the tax assesed value. Add 10-15% to each and then average the two - this will give you the market value.Then, deduct any repairs you will have to do - but try to have a detailed written estimate of these repairs - to show the seller you have done your homework. First I would offer what you are offering - you never know - they might take it - never know till you ask. This is just a different angle at it.
Good Luck!