Where to start - Posted by BrianW

Posted by Brian W on July 22, 2003 at 06:01:56:

I spoke with the seller last night. He said I could go through the house during the day on wed, I just did a walk around and looked in the windows yesterday, and make him and offer. He said he also was showing the house to another potential buyer that day who made a verbal offer of 118k and that he would take it if the other buyer brought a deposit. I said that was no problem but I was not making any sort of offer yet. I am hoping this other buyer passes and I can make an offer around 90-95k. Does that sound too high?

Where to start - Posted by BrianW

Posted by BrianW on July 21, 2003 at 17:35:48:

Hi all. Newbie here and am looking to start in REI I just located a FSBO I am interested in possibly purchasing for my primary res for a few years then turn into a rental. The owners deceased father had and heres what I have so far:
asking price: 130,000 no outstanding financing
Assd value total:$105,000
2003 tax: $2259
14 comps in area
Average: $106,435
high: $139,900
low: $77,900

The property looks a bit rough as far as cosmetics and I haven’t looked inside yet like I said vacant since the dad died…My question is where should I be starting my idea for an offer, I am not by any means attached just looking for a good deal. I’m pre approved for about 110,000 my self at 5.125 fixed 30 and have about 5000 cash? please oh great gurus shed some light.

Re: Where to start - Posted by Joseph Zimny

Posted by Joseph Zimny on July 21, 2003 at 21:29:24:

How motivated is the seller? Are they anxious to get rid of the property or are they just looking for someone to meet their asking price? The price appears to be at the higher end of the range and given that it needs work, as you say, might the cost of repairs push the total investment to the highest end of that range?

A good deal might be had here still if you can negotiate a few points in your favor including a reduction in the asking price to account for repair costs and OWC financing at 30-35% LTV.