Advice On Presenting L/O Offer
I have found a house on the lake that I would love to buy for myself. The owner is willing to lease/purchase with very good terms but the final price is too much for the house we are wanting to buy especially for the market. It is a new house that he had built and was going to live in but for some reason his situation has changed and just put the house on the market instead. From the price he has offered as a monthly pament he only owes around 400K for the house from what I can tell, and I looked up and saw he paid 210K for the lot which he bought in 06 and then built on in 07 I assume the lot was paid for in cash. He has had it listed for 899K and has not dropped the price but is willing to lease purchase for 2800 a month and 1% down, which I can definetly live with. I would like to do this but I want to be able to make improvements that are needed and be able to make the payments at the end of the term or have enough cushion to be able to sell it easily. I think the house in a better market the basement finished and a little landscaping would be worth over 1 million. Any advice on what I should offer him that would be a win win for us both?
Thanks for your replies. I have been working on this for a couple of weeks and the property is still available. I have decieded to offer him a sub2 deal since his terms are so good with $10,000 up front. What do you think? I would also give him some more money over time but I thought I would leave that for him to negotiate. Any more suggestions? I appreciate the feedback. Thanks
Also you had mentioned the comps. House right next door that joins this property just listed yesteday for 1.3 million. Older home just down the street listed at $900,000