Hello all. I just found this forum and am hoping to get a little info. I’m not really an investor…yet. Rather, I’ts something I’ve been thinking of for quite a while and since I’ve jsut recently started looking at bigger homes, I’ve found a property that is intriguing to me.
First, a short bit about my situation. I’m in a 3BR/2BA house that will probably sell for about 165K. My wife and I are looking for a house that is in the same pricing ball park but with significantly more living space (about $200K or less).
With the help of an agent, I’ve come across a house that is listed at 195K. It’ has been on the market for 190 days, and started at list at 225K. Comparables in the neighborhood have not sold for less than 215K for over a year. In fact, the houses in this subdivision are worth between 220-450K.
The seller is motivated: widowed, moved out of town, etc. etc. The seller has already replaced carpet and paint throughout the interior. By my uneducated opinion, this is a house I could easily buy for under $190 and sell for about 210 or more easily.
Here’s my question: I’m positioned financially to be able to offer without a sell-contingency. IN otherwords, I can work it so I can offer and buy it, without selling my own house.
I think I’m the only buyer, because the listing agent is calling my buying agent 3X’s daily. What should I offer? Since I’ve never done this type of thing before, I don’t know what is considered TOO LOW to offer, but I’m wondering if they’d jump at something like 155K.
The hosue has had foundation issues, but they’ve been piered and are warrantied by the engineering firm. It needs some work, but mostly cosmetic: the siding is butt ugly, the interior trim is very dark and the cabinents are ugly, has dark panelling. This is all stuff that could EASILY be worked out.
Anyone have any ideas??? Please help. Sorry if this is a dumb question but like I said I am VERY new at this. I was planning to “flip” a property, but with this thing, I could flip it and profit or have a darn nice place to raise my small childeren and have lots of equity built in.