Posted by Dan W. (NY) on December 10, 1998 at 14:12:34:
Something smells funny to me on this one!
I have bought eight houses over the last two years and looked at dozens more, and I have never met an owner who did not know pretty much what their house was worth. Especially if the house is in good condition! Especially if it is in an appreciating neighborhood! And especially if they have worked with a real estate agent who has told them the fair market value!
Real estate investors usually make their money by purchasing properties from owners who for one reason or another HAVE to sell for less than what their property is worth. I don’t believe that wanting to buy another house is a good enough reason for your seller to “throw away” $25,000.00, do you?
Ask the following questions:
For what price did they list the house with the real estate agent?
Did they sign an exclusive listing?
What does the city/town have the house assessed for?
Is their current mortage assumable?
Ask yourself “Why would these people want to sell ME their house for less than what it is worth?” If you don’t know, then you could be the one taking the loss!!!
HELP, 1st deal, and I want it ! - Posted by Rob (Georgia)
Posted by Rob (Georgia) on December 10, 1998 at 13:30:57:
I found a house (2 bed/ 1 bath) frame in a very nice area that’s appreciating in value with no repairs. The home owner sought me out from a previuos deal I did with a friend of his. Now he wants me to BUY his house because his family is looking for another house. The payoff is $44,000 and the value in this area is $65,000. The seller doesn’t need alot of cash. They will take anything they said ($500 -$1,000) They just want to sell it, and go to another home. Also They just listed it with a real estate company on monday December 7th for 6 months.
Now what do I do, because it’s a GREAT investment home, and an appreciating area ?
Other questions:
How can I get rid of the real estate agent ?
Can the seller Deed the property over to me or something like that, were I give him $500 and he gives me the deed to the property.
Can I assume the loan from the mortgage company, and if so how will that work ?
I really want this house, so please give me some suggestions on how I can get it without any money from my pocket. It’s my 1st investment deal
The agent now has a contract with the sellers. He make agree to only take the contracted listing fee if you discuss it with him. As Dan W. said exercise caution. If it looks good immediately put it under contract with a clause that it is contigent on your approval of inspections.
You do not want to assume the existing loan yourself. You do need to find out if the loan is assummable before you know wether to take it subject to or not.
Find us some more information.