Help With a Possible Deal!

I have a motivated seller in my area selling her 3/2 2148sq ft home. Built in 1963. Recent appraisal was 115000. How much confidence do I put into the appraisal, it seems like most comparable homes are selling btwn 100-125. Needs probably 5k or less repairs. All she owes is 43k on home equity loan. I am thinkin of first offer around 65k under an option to purchase. It would be a wholesale deal for me. This is my first so I am a little unsure what my first step should be. Any advice would be greatly appreciated.

Also, where do I figure my closing costs. Who pays those?

Does she have any other loans on the house? what did she ask for? Make the offer and see what she says… as far as closing costs goes, you’ll pay them at this low of an offer but that too open for negotiations :slight_smile:

She was asking 115, now 110 plus 4500 toward closing. All she owes is the 43 and they are very motivated. Listed since early Sept and her husband is driving 100 miles to work until they can sell. I need to go look at house tomorrow and I will make offer after that.

Thanks for your help.
Oh, so I just figure in about 3k or so for closing when I make offers? Does that sound fair?

It depends how you are closing and where you are closing, for 60k 3k is about right. This may not turn out to be a deal. Make sure you can justify your offer because she will need some convincing.

Okay, thanks. I am just going to make the offer and see what she says. If she accepts or we negotiate something I am going to use an Option to Purchase Agreement. I am hoping to have her direct deed the house to my buyer, but I am not sure if that is considered a simultaneous close or not or if it makes a difference. I have contacted a local Title Company and hope to hear back from them soon.

Again, thanks for all of your help!