Just looking for option with my parents situation - Posted by will

Posted by will on March 24, 2006 at 19:24:58:

Shelby Township, Michigan

Good suburban area. Minutes from unbelievable shopping and etc.

Just looking for option with my parents situation - Posted by will

Posted by will on March 24, 2006 at 19:02:07:

Backround info:
My parents are going to be moving to another state. They are semi-desperate to get rid of the place, not because of financial problems but because all other plans are in place except the selling of this house. The day the hosue is sold, they are gone but they are not in too much of a rush either as they don’t ‘need’ to sell soon.

-6 bedrooms total (1 master, 3 regular, and 2 semi-finished in the basement)
-3.5 baths w/ whirlpool in master suite
~2800 sq. feet
-2 story
-All walls in house have been repainted in last month

-Mortgage balance is $316k
-Monthly is $2100
-Comps are $360-390k
-Current listing FSBO is $359k

Current situation:
-They mentioned to me during conversation that they may have one of my uncles take over current payments and have him sell the house. All they want out of it is the mortgage balance paid off. All profits would go to my uncle. At this point it is just random talk from my parents. Nothing official has happened. I told my father to hold on to the deal because I would be interested.

I just have to take over the mortgage until the house is sold. I’m aiming for a profit of $15k so the house can be sold quick and it lowers my holding time. Thoughts?

Look harder… - Posted by David Krulac

Posted by David Krulac on March 25, 2006 at 06:18:58:

There really is not enough info. The $15k profit seems slim for a $330,000 house. The top 10% of the value of a house is vapor, it can disappear quickly particularily with holding costs, seller concessions or either price or closing cost help and market conditions.

  1. You don’t say what the market locally is like. Good market, seller’s market, what is days on market? buyer’s market, crash or stagnation.

  2. How good are the comps? the best comps are ACTUAL sales, not asking prices, of similar properties as close to the subject as possible and settled in the last 6 months. If it hasn’t settled in the last 6 months its not a comp.

  3. Basement bedrooms don’t add a lot of value and the standard appraisal methods do NOT count square footage below grade, even slightly below grade. There are some basements that are 100% above grade but they are few and far between.

  4. Keeping the mortgage in place until you sell will cost you at least $2,100 a month not counting utilities, maintenance, repairs for anything that breaks, taxes, insurance, home inspection fixes, seller help for buyer’s closing costs and any other expenses. A friend of mine bought a house and on the day that he bought it the sewer backed up into the basement. The roto-plumbing guys, I’ve never seen a female sewer person, fixed the problem. He owns the property for 7 years never had another problem with the sewer. the day that he settles to sell it the sewer backs up again just in time for the buyer’s pre-settlement walk through. He had to call the roto guys again, fortunately one last time, a couple hours before sttlement, guess who paid?

  5. I’m not saying don’t do the deal, I’m saying make sure of your comp numbers and make sure you consider what extar costs you could incur. The deal at $15 k is thin and could go south in a hurry. Be careful out there.

Where? - Posted by Mary

Posted by Mary on March 24, 2006 at 19:21:56:

Where is it Will?