Posted by Tony Dulgeroff on March 23, 2002 at 21:30:49:
Go for it!
Should I, or Shouldn’t I?? - Posted by Kris(wa)
Posted by Kris(wa) on March 23, 2002 at 20:15:24:
I am looking at a house that has been on the market for approx. 6 months. The seller is motivated, but has to sale for cash. His listed price is now $234,900. He would sale it to us for $219.000. (The house was appraised at $255,000 when they were looking to get a equity loan). Right now the agreement we have with the seller is when we find a buyer, we will purchase it from him. My question is, should we wait, or go ahead and purchase now that Spring is in the air and houses tend to move faster?
Re: Should I, or Shouldn’t I?? - Posted by Glen SoCal
Posted by Glen SoCal on March 23, 2002 at 23:08:24:
Kris-
RC has given you some EXCELLENT advice…don’t let
spring be your guide.
Reread RC’s post.
Re: Should I, or Shouldn’t I?? - Posted by RC
Posted by RC on March 23, 2002 at 22:01:57:
Kris,
This doesn’t sound like a great deal - what are the actual comps for the property? The appraised value means nothing, it could have easily been inflated and oftentimes are when it comes to equity loans. If this is the case you may be paying FMV at 219k. Even at 255k you’re looking at 85% LTV so, unless you are very confident in your areas market and have adequate reserves for holding costs, I would try to get a better price on this one or pass on it.
The only way I would consider this deal would be on a “subject to” purchase agreement. Have you looked into the sellers reasons for being “motivated”? Time on the market doesn’t necessarily make a motivated seller - if there are reasons they can often give guidance to advantageous solutions where you can make the “win - win” deals happen.