Do I have a possible first deal??? - Posted by Leap of Faith

Posted by Lyal on June 29, 2003 at 07:43:03:

Haven’t read the whole thread here so my input may be redundant. Taking this subject to would just make here problem yours with possibly disastrous results. It’s upside down and you arent’ sure of the real value.

Do I have a possible first deal??? - Posted by Leap of Faith

Posted by Leap of Faith on June 28, 2003 at 08:52:05:

I have a lead on a possible deal and I wanted to get preliminary advice from the more experienced.

My sister-in-law called me last night and told me that her best friend who recently got married is desperate to sell her house because she and her new husband are to close on their new house July 31. She said she even said she’d give it away (I know this girl and I seriouly doubt that), but that statement does signal “motivated” in my mind. I don’t know if this is a possible sub2 deal, I would like your advice on how to proceed.

I did some research this morning on her property. It’s located in Cypress, Texas (Harris Co) The house is a 3/2 on 1 acre. It has 1,973 sq.ft. living area. My brother says that the garage was converted to another room (office) and there is a barn and carport on the property(not mentioned on HCAD site). According to the appraisal district data it was appraised in 4/03 with an appraised and market value of $180,000. She told my sister in law that she was asking $250,000, had a buyer but it fell through. She told her to tell me $199,500 and for me to call her. She is fed up with realtors because they aren’t showing it. She already fired one and is not pleased with the other.

There are 2 other properties on her street. One is appraised for $219,000 and has 2,384 sq. ft 4/3.5 bath on 2 acres. The other is on 1 acre, 2.472 sq ft 4 br/2.5 baths 2 story appraised for $166,200. The closest comps I can find are 1.75 miles away. One is for $237,937 on a 2,549 sq. ft house and the other is for $139,384 on a 1,865 sq.ft. house. Both of these houses are on much smaller parcels (11,600 for the first and 6,765 sq.ft. on the second). Most of the sales in the last year were for house with 3000+ sq footage and the values were way up there.

One more thing, my sister in law told me that she’s pretty sure her friend put at least $40k down on the property when she bought it a couple of years ago. I would appreciate your assistance with advice on how to proceed, or, if to proceed. This property is outside of my farm area and priced above what I was looking at, but I don’t want to pass up a good deal is there is one here.

Thanks for your help.

Only if you can get it for less - Posted by Jim

Posted by Jim on June 29, 2003 at 04:19:03:

If it’s not going for $250k and she’s going through realtors… then you probably won’t have much luck either. $200k is a good deal only if you can make $$… check more comps, talk to the realtor, find out why it’s not selling. Ask the Realtor what she thinks the FMV should be.

Don’t think so - Posted by B.L.Renfrow

Posted by B.L.Renfrow on June 28, 2003 at 19:19:08:

First, whatever the seller paid for it, however much she put down and what it appraises for are all worth the same thing: nothing.

What really counts is comps. Can’t you look more than 1.75 miles? I live in a small town, so comps are often difficult to come by, but try looking in a wider area.

This doesn’t sound like a deal. It sounds like a seller dreaming, with lots of wishful thinking. Give her a call after she’s been making two mortgage payments for a few months and see what she says then.

Brian (NY)

Re: Do I have a possible first deal??? - Posted by david

Posted by david on June 28, 2003 at 12:20:37:

If I understand you correctly, her asking price is way above market value as appraised, is that correct? I see the comps are all over the place too. Am I missing something? Id say offer to move the house as a Lease Purchase in 30 days and profit from the middle. Only my humble opinion and I dont know as much as others around here. Stay tuned…

Re: Do I have a possible first deal??? - Posted by Leap of Faith

Posted by Leap of Faith on June 28, 2003 at 13:04:57:

You are definitely not missing anything. One thing I thought about was to buy Sub 2 with her making August’s and September’s payment. That would give me time to find a T/B. What do you think?