Challenging Deal For Newbie-Pls Help!
Hi,
I have a potential good deal but I am too confused to move forward. In theory, it is a typical wholesale deal----house needs considerable repairs must be bought at a discount. The house has been on the market for at least 2 months. To make a long story short, I offered 29,000, the owner countered with 20,000. I was really happy at first, but there are two things I have to consider:
1. The house next door to mine is in worse condition and a major eye sore. Do you think I will have a really hard time passing off to a rehabber because of this(I am currently trying to locate the owner for the neighbor house, but in the meantime I must move forward.)
2. The seller only has a quit claim deed and not a warrenty deed on the house--does he have clear title to sell it to me then?(He bought it a tax sale)
I am so confused! Sorry for the long post, but I wanted to be clear. All sugggestions are really appreciated!!
I haven't had to deal with this yet. I'm working on my first deal, but I think If I were in that situation, I would call a local title company and ask them about the deed situation.
As far as the house next door, you'll have to use your gut. I've seen houses sell with a privacy fence and I've seen them sit on the market because of bad neighbors.
Sometimes, appraisers will give you comps over the phone for free. Or, some realtors will help you.
Once you have a couple of comps in the same neighborhood, go look at them. Do they have crappy neighbors? How much did they sell for? That could give you an idea. If you're in a hot market, it may not matter who's next door.
If I had crappy neighbors, I'd make their life HE double hockey sticks until they cleaned up their act or moved out.
Is the house next door empty? If you had an offer on both ugly houses, I know I would likely snatch them up from you.
These are just a few suggestions from another newbie. I hope this helps.
Ronnie
[addsig]
Thanks for your suggestions.
To answer your question, the house next door is vacant and it has been a nightmare trying to locate the owners. I think the vacant house next door is the reason why the house has been on the market so long.
Has anyone else ever experienced a similiar situation?