I just spotted a property, it was on the market for 3 month, a fixer and upper, the owner passed away a year ago and attorney is sellling it. The only medical lien would be cleared once taken over. It was listed 54,000 on the paper and the realtor told me that 45,000 would be line of the attorney. Its a 2+1 bedroom and 1+1 bathroom house. Foundation is solid, need siding and some paint work. it has basement, and the drop ceiling frame is hanging level and tight. it is almost a century builded property with the oil operated furnaced. I am very very interested in it because it is close to the local university. Siding could be done in the later period, all i need to do is to clean the house. Still I am thinking of 35,000. Am I going too far?
I have compared the price among the neighborhood, and via the internet. It appeared that the property worth like 72,000 after fixing. Am I going to far to offer 35,000?
What is the appraised value, how much can you rent it for?
$59146
monthly rent within the area with similar characteristic range from $500 to $695
From my own experience what a realtor says is the bottom line, typically is pretty close to the bottom line. Its not the rule but I have found this to be true.
If your market is decent you always need to ask yourself “If the property is so great why hasnt anyone else bought it?” Good responses to this question would be a substantial recent price drop, a substantial change in seller motivation, or a new listing that nobody else knows about. Those are the only 3 factors that I have found, would make a house worth buying.
Its a bit more complicated than this but always ask yourself this question.
I cant speak for everymarket, but I can speak for what I have found to be true from experience.
Eric Medemar
Well, an offer is just that, an offer. Who knows maybe they will accept it maybe they won’t. It depends on
the sellers motivational circumstances. Some of my greatest profit margins have come from making ridiculously initial low ball offers & surprisingly having them accepted or having them counter with an amount that was close to it. If 37k works for you then make the offer, more likely than not they will counter offer you but may possibly be lower than that 45k figure. What do u have to lose? If they want to sell the property then you should be able to purchase for amount that u r comfortable with… Good luck.
That’s so true.
And I am a first time buyer though actually, should i get myself a real estate lawyer?
It does’nt matter if you are a first time buyer or not you should Always have a good r.e. attorney present
at any purchase transaction. One reason is because you truly do not know the seller and his crew, not
saying that they aren’t legit but desperate/greedy people can do some pretty crazy things for a dollar.
Not trying to scare you just making you aware. Sure it may cost 300/500 bucks but the peace of mind
you have is well worth it.
Get an attorney, cpa, realtor, contractor to complete your team!
ok, I had been preapproved by eloan, I am thinking of getting a home inspector and an appraiser to the property before making an offer, am I in the right track?
Yes you are ;D Although you may be spending some $$ up front it is much better to know what you dealing with now before getting in too deep then discovering major issues. As you do more property you will
get a better feel of what issues to look for, so a good (free) contractor’s estimate will go far later on.
I suggest getting a property inspection when in the offer phase because it can provide you
with much needed ammunition in a hostile negociation. If the seller is not as motivated as they
should be then an inspection report showing how many repairs are needed is essential.
As far as getting the appraiser out right now it may cost 300 for full appraisal. Rather spend 50.00
for BPO from realtor or price check from appraiser. I think u said it was valued @ 59k as is.
59k is what he told me. Should I hire my own appraiser?
I would say that you should-but try Not to pay the full fee (300)
Also if you have a lender in mind maybe they can send an appraiser
on your behalf, (maybe for free) and you can pay at closing. This way you can use the appraisal for the loan as well.
that’s true.
How about a home inspector vs a contractor?