Posted by JHyre in Ohio on March 19, 2002 at 06:51:37:
I generally like to see my post-downpayment investment in a home equal 40% of the note involved. Just a rule of thumb, it varies based on circumstances.
John Hyre
Back to bizness - what about DWs? - Posted by Steve W (WA)
Posted by Steve W (WA) on March 14, 2002 at 14:10:08:
I have a buyer for a repairable repo 1982 3/1 DW (AV=15K & change) that the finance company told me the day before they would take 6K, but not my 4K. Buyer has signed a purchase agreement for 12K financed - now I have to buy the place! (Talk about virtual dexterity!) I faxed a concession offer of 6K this morning, and by telephone, received acceptance (for what that is worth!).
Here’s my Q:
I know Lonnie goes on about one 5K deal vs. 2-2.5K deals, and I agree, BUT . . .
that is pretty much regarding SWs. Somewhere in the last month or so someone commented on value comparisons with something like, “double the house, double the value.” (I think it was Chuck AZ!) That sounded like a reasonable rule of thumb to me, and it is what helped to guide me to realizing that I think 6K => 12K is within Lonnie guidelines. . . FOR A DOUBLE WIDE
Opinions?
BTW, are these butterflies from selling a home I do not yet own normal??!!??
I did let the buyer know that I only had an offer in, but that I wanted them to see it before anyone else. So I have an out if it falls to crap, even though they will be disappointed . . . just have to put them in another!
Re: Back to bizness - what about DWs? - Posted by JHyre in Ohio
Posted by JHyre in Ohio on March 14, 2002 at 14:50:00:
The numbers matter…if you had a SW for $6k cash that you could sell on a $12k note, there is no difference between the same numbers on a DW. I wouldn’t do this deal unless the buyer had at least $2,700+ down.
John Hyre
%? - Posted by Steve W (WA)
Posted by Steve W (WA) on March 14, 2002 at 15:35:29:
How do you arrive at 2700? I am expecting 2 or 3K - gonna push for 3