For heaven sakes, figure out the value of the property. If it is a condo, you can probably see what the other units in the building have sold for, or are being offered for sale. If necessary, get out and scout up other similar properties. Talk to real estate agents who specialize in that area. If necessary, tie it up with a contract and meantime get a professional appraiser to rush an appraisal for you.
What if the property value is less than $600K now? Are you still interested?
Urgent Advice Requested - Posted by Tracey Boudine
Posted by Tracey Boudine on August 11, 2003 at 01:24:30:
I need help evaluating/structuring a potential offer. I must have it to the seller in 48 hours or less.
I have an out of town don’t wanter and property. Guy called 5 times trying to reach me over the weekend. Seems eager to unload.
Two years ago this guy put a 20% down payment on a to-be-constructed $810K condo. It was not built at that time, so the price reflects a pre-construction developer discount. The price supposedly reflects a discount on the market price of two years ago.
Now he does not want the condo. Initially he mentioned something about wanting to get rid of it so he could purchase a different property. The first closing date is this Thursday 8/14, but he can postpone it until 8/29 (two weeks).
The balance on the mortgage is $648K. He’d like the $162K back - ideally.
It just seems like this $648K mortgage balance could be a huge discount of 33% to 40% or more - to get into it and assign or flip, especially to an end user. Or it could be nothing at all – just an alligator that wants to eat me alive.