Wayne,
First you need to know how much the other homes in the area are selling for. You know, sales comparables. That way you know whether or not she is indeed asking too much. Second, if the house is competitively priced, you need to find out what the broker is doing to sell the house, so you know whether or not the sales strategy is aggressive enough. If not, you need a new broker. This is where I would start.
Good luck, and good investing.
Rocky
Posted by Wayne ¶ on December 16, 2002 at 10:37:49:
Hey everyone,
I’ve been studying this site for a couple of weeks now in order to get into some real estate investing. I’ve concentrated mainly in the mobile home area simply because of the lower risk capital. I have broused throughsome of the “real property” sections and have picked up some ideas which I might try when I feel a little more comfortable.
Now for the situation. A good friend of mine moved from her existing home to her mom’s because of the size and it is set up a little better for her family. Her mother took out a $40,000. equity loan (which my friend is making the payments) to make improvements and fix up to accomidate the new tenants (owners). The deal as I understand it is that my frind will buy the house when her’s sells.
Her old house is now empty and for sale through a realtor. It has been for sale now for about six months with little activity. She has lowered the price twice and the realtor is suggesting it be lowered even more. I did the work on her mother’s house and she has asked me to do some more fix at her old house to make it a little more desireable. She figures she can go another month or two before the two mortgages (old home mortgage and new home equity loan) will start to become too much.
Bottom line. House originally listed for $220,000. Now down to $200,000. Mortgage info including payments are not known but I can find out. Don’t know the equity situation either. It appears from my limited exposure to this stuff that a L/O may work. I need some one to give me some help on what questions I need to ask and the opinions that might best fit the situation. I’m trying to help her out and would like to make a few bucks for the effort. (Friendship is nice but I still need to eat).
Any help would be GREATLY appreciated.
Wayne