How would you handle this opportunity?

General Real Estate Investing
1

Hi Fellow REI’s,

I’m still a bit of a noob but keeping at it. Anyways, we’re relocating to another area and really like this house we saw (to be our new primary). There’s only a couple of problems (i think) we have.

  1. the house is a 3 bedroom listed and priced as a 4 bedroom house. It’s in a great location and needs a little updating. I only want to offer as the house is worth and not pay for the “missing” bedroom.

  2. We have to sell our house. I’m not sure if we’ll sell it before having to start the new job. So … we’d have to rent (anyways).

So, how would you play this?

Would you make your offer a lease option? What kind of strategy would you use in this position?

Best,

Mike

2

First find out what the true value of the home is worth by checking the recent sold comps. Since this is a 3 bedroom check for recent 3 bed homes with either the same or close to the square foot.

Once you find that start negotiating with the seller to get the price that is both acceptable to you and the seller.

3

right. We put in the first offer and it was rejected mainly because we have to be contingent on selling our current home.

any options around that?

4

Yes. Don’t buy until you sell the current home! That’s exactly what has financially ruined lots of people! Two houses, two payments and now what happens if the new job doesn’t work out?

Two of the above (selling the house and the new job) are not in your control. Other people make the decisions affecting you.

I would get a budget month-to-month rental apartment so you can still handle the old house payment, maybe rent out the old house for now at a discounted rent while it is up for sale.

If your employer is offering financial help like a home buy-out I would take it. I don’t know of anywhere in the US today where it is a seller’s market.

Be conservative. Plan for the worst…house sits vacant and unsold for 18+ months. New boss is a total jerk and the job doesn’t work out. You have to relocate once again for a better job. Or you have to go back to your old house.

Maybe I’m just being a pessimist today, but your scenario screams “Warning! Warning!”

Furnishedowner