Seeking advise on 1st deal - Posted by Dave(WI)

Posted by Ronald * Starr on July 09, 2001 at 16:06:39:

Dave (WI) --------------

Good for you, figuring this not a good deal. You’re absolutely right, a house that has been on the market that long is not worth the asking price. It would be good for you to know how long it usually takes to sell a house when the price is right. This is called “days on market.” Ask the agent who has the listing to get you the recent statistics for that area.

It is probably over-priced by at least 10%, perhaps more. If if were closer to market, it would probably have elicited offers.

I don’t deal with properties with so little equity. So I can’t give you advice on the matter.

Good Investing******Ron Starr************

Seeking advise on 1st deal - Posted by Dave(WI)

Posted by Dave(WI) on July 08, 2001 at 21:49:14:

Here’s my first venture into SFH. Looking for suggestions from the experienced investors.

Loan balance - $136,874
PITI - $1,533.00
Interest rate - 11.025%

Seller called me telling me his house was appraised at $172,000 2 years ago. This was probably done when he refinanced. He’s paying the high interest rate because he had some problems with outstanding medical bills.

Seller told me all he wanted was for me to take over his payments and give him $4,500.00 so he could pay off a loan he has. He’s willing to sell on Land Contract.

When I visited him at the house I found out a realtor had listed it for sale. The asking price is $151,900 and has been on the market for 7-8 months.

Here’s where I have questions.

#1 I don’t mind taking over payments of $1,535.00 per month and giving the seller $4,500.00 if the house was worth $172,000 two years ago. However, if it was appraised at $172,000, why doesn’t it sell at $151,900?? Since I don’t know this area very well, I was thinking of having it appraised before finalizing the deal. If it’s only worth $151,900 I don’t see any reason to give the seller an additional $4,500.00 for his property. Then the monthly payment may be too high for me to L/O. Please provide some options for me.

#2 The house is listed by a realtor. Should I wait until the listing agreement expires before finalizing the deal?

Thanks
Dave(WI)

Re: Seeking advise on 1st deal - Posted by Ronald * Starr

Posted by Ronald * Starr on July 09, 2001 at 16:09:26:

Dave (WI) --------------

Good for you, figuring this not a good deal. You’re absolutely right, a house that has been on the market that long is not worth the asking price. It would be good for you to know how long it usually takes to sell a house when the price is right. This is called “days on market.” Ask the agent who has the listing to get you the recent statistics for that area.

It is probably over-priced by at least 10%, perhaps more. If if were closer to market, it would probably have elicited offers.

I don’t deal with properties with so little equity. So I can’t give you advice on the matter.

Good Investing******Ron Starr************