What do I have here? - Posted by Eric (IL)

Posted by JPiper on May 31, 2000 at 18:54:15:

You really don’t have enough information to comment at all as to whether this is a deal. You need better comp information, and numbers on repairs.

Assessed value tells you next to nothing about market value. What if the property that “varies widely” from it’s assessed value is the subject property?

The tax information should show the square footage of the properties that have sold. I don’t know if octitle provides this…but if they don’t, it should be available through the county.

You might call a few Realtors that work the area…ask some questions about value…have them provide you with a list of comps.

If you have better information on comps and repairs then we (and you) will have a better idea of what may be possible here.

By the way, mortgage information may also be available at the county. Or, if the Realtor is cooperative, he may be able to ask the seller…you need the information so that you may decide if you would like to pursue an assumption.


What do I have here? - Posted by Eric (IL)

Posted by Eric (IL) on May 31, 2000 at 13:13:22:

I know, you guys get about 2400 posts a day asking, is this a deal? Well I’m doing it anyway, because everybody is usually extremely helpful :).

Here’s what I know about a given property:

Lot: 100 X 220. Techinically this is 6 lots, but they are apparently small. The realtor said I wouldn’t be able to divide and sell them. Cattails in three of the lots. Waterfront (river).

Building: Small, 500 sq. foot approx., although I only have definite data on the dimensions of some of the rooms. Two story Cape Cod. 2 bed, 1 bath. Needs face-lift, roof work, foundation possibly unstable (this is a deal-breaker for me) , and probably a new septic tank.

Tennants: Month-to-Month. The realtor does not have the rent info. Reluctant to move out. Described as a problem by the realtor. Wanted to buy the place, but couldn’t get deal.

No appraisal has been done. The realtor was not privy to mortgage info.

Comp sales data:
Unfortunately Octitle is a bit sketchy on this. None of its comp. sales have square footage, so it’s difficult to tell using the method here. They do have assesed value, so I might try going based on a ratio of selling price to assesed value, and eliminate any that vary widely. I don’t know if that will work. As it is, they vary from 100K to 150K. I can’t imagine a house of 500 sq. feet going for that, but it is waterfront prop. with a large lot. The current asking price is $87,500.

So I ask, is it possible to flip this if I can come up with more accurate comp. sales and repair data, or are there too many problems. Thanks in advance.