Vacant Property In My Area! Need Advice!
Hello,
I have noticed a property and spoke with the owner. She wants to sell it for $30k, however, this is what I have noticed.
Land Use: SF
Land Value: 2,600
Improvement Value: 23,200
Total Value: 25.800
....Effective Date 1/1/2003
Land Value: 2,600
Building Value: 23,200
Total Value: 25,800
The house has been boarded up for years, needs alot of work done to it.
She said she wants only $30K. Can I make her an offer for the $30K even though it is assessed now at $25,800? She wouldn't take less than that. I contacted her to let her know that I would offer $29K, but if she doesn't accept can I go for the $30K that she wants?
I would like to flip this property over to another investor.
Please pm me or share advice right here. Thanks.
You can offer whatever you like. I can sell you my watch for $1000 or my car for a million dollars. The assessed value of a property is simply a determination on how much property tax you will pay. Oftentimes in my area there is a corelation that the market value of the property is more than assessed value and less than appraised value.
Rarely would I pay what the seller is asking unless it is truely priced under market value. It seems that the price is set at market value and I would work to get it lower. Search the area to find out what other homes will be worth to SELL. This involves searching for home sales in the past 3-6 months in the same subdivision if possible. Make adjustments based on lot size, sq ft, condition, other features, etc.
Myfrogger gave you very sound advice. Dont overpay for the house, have a realtor pull recent comps (last 6 months) for all sold/pending properties in that neighborhood.
The more homework that you make before you buy, the more money you make when you sell!
Best of Success!
BAMZ
THe first thing I woud do is go to the recorders office and find out if she is free and clear on the deed. If not I would use what is there to figure out what is owing on the property.
THen either get a realtor, or yourself to pull up comps. If there are other houses that have sold in the area in the last year then I would go to the recorders office and figure out what they sold for.
30k might not be bad if the terms were good depending on your financial situation.
I generally have three prices that I offer
The cash price
The owner carry price
A blended price/ or conventional financing price.
If this is a rehab and I stand to make 50K after buying it for 30 and putting 20 into it then I would see if she would go for 30k interest only first 6-12 months while I fix up the house and then a balloon in 5 years.
If there is financing in place I might buy it subject to.
There are many options on this one.
Good Luck!
[addsig]
Its free and clear.
I would just add that if you want sales comp info, don't use "pending sales" but only closed sales. Pendings aren't sold's.
I would do the comps first. Why waist a trip to the courthouse to see if free and clear if the property is only worth $30,000 fixed up and it needs all that work. Sellers are often loons and ask what they think it is worth and not what it is actually worth. Abybody can pay retail for property and loose money eventually. Make sure you have a bargain
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
Do the research on the property, and then bring it to the owner. Validate your asking price. She may say no, or she may say yes once she sees your reasoning for it. You never know unless you ask!!
Eric
[addsig]