Need Some Advice On Subject To Deal
Today I saw a house out in the country.
A very well built (1977) brick house with excellent windows (easy tilt and clean, dubbel pane), 1 story, 4 bedrooms w/built in spacious closets, 3 bathrooms, huge kitchen (all appliances stay except fridge)w/French doors to a would be patio (just a slab), large living w/fireplace, attached 2-car garage, there is damage to the sofets (is this how you spell it), especially on the West side of the house, front has small, that is, not wide porch, covered.
The house sits on 5 acres, on a hill, the driveway once had gravel, all gone with rain, since it slopes to the country road. At a considerable distance from the house is an outbuilding, well built, one part is for 2-car garage and has a bathroom, floor is nice concrete slab; through a door you get into another "garage", room enough for 2 cars, but overhead door is for only one, floor is asphalt, with weeds growing through it. There is an attic over this building, roof is OK. The whole place is quite run down, weeds up to my hips. Needs a thorough cleaning up and paint on the sides of the house where there is wood from the pitch of the roof till the windows.
The owners are sick and "old", don't have money to repair and clean up and are too weary to do so, would like to clear $ 90,000!and retire, live off of interest.
They want 120,000, have 1 mortgage for 45000 at 9% (3 or 4 year old - I cannot find it in the P. Records!), payments are 560/mo incl taxes and insurance. They bought the place in 1993.
Doing my yellow pad, and calculating all of the repairs + new roof/sofets, concrete driveway, etc. I came to about 26000. Too much for me and too little for them.
Is there any other creative way for this deal?
- They called me on recommendation from other sellers -
Ladybug
Ladybug,
What is the FMV of the house in it's present condition, and what is the ARV?
Do you feel that your offer is the best offer they would get in an open market, after all costs/expenses have been accounted for? If so, make it and leave them your card. I'd tactfully explain to them that the longer it sits, the lower the price will become due to more damages (neglect).
BTW, someone's figuring is a little messed up. If they're asking $120K, and the owe $45K, that's only a $75K profit if no costs. They'll never come close to $90K that way anyway.
Roger
Ladybug,
Knowing the fair market value of this property would help in making a recommendation to you.
John $Cash$ Locke
The fair markey value would be $ 100,000.00 - 120,000 (square footage price in this area is around $ 65 - 70)
Repairs are about $ 60-65000. The way it looks now it could sell for about 80,000.
They owe about 42,000 on the mortgage (it puzzles me that I cannot find anything in the County records, except a warranty deed)
Their payments are approx. $ 560/month including taxes and insurance, they told me. Mortgage is with Bank of America.
The place really looks very rund down, sad because it could be beautiful, it is located off of a highway that is well traveled, cutting through the county.
Sorry, I made a typing error on the post mentioning that I came up with 26000.
It should have been 5400.00.
Ladybug
[ Edited by Ladybug on Date 08/07/2003 ][ Edited by Ladybug on Date 08/07/2003 ]