What Should I Do?
Ok here is the story.
House appraised 2 years ago 220k back in year 2002. The owner bought back in 2000 for 207k. Before renovating it, it looks much better now by looking at the older pic when they first bought it. What’s confusing to me that it has been on the market for about 2 years now. Between 2002-2003 listed for 225k then dropped to 210k no sale, then between 2003 till end of June from 210k then dropped to 199k and still no sale. I looked at the house and I like it a lot, tax value alone in 207k, plus appraisal back in 2002 for 220, to me it at least worth that if not more. Needs no work at all tried to call the listing realtor to see why no buyers, but she did not cal back. The bottom of the story is I can buy now for 165-170K the seller is motivated and then will but some money at the closing, I would buy it in a heart beat if I was going to live in it but its about 40 min from where I live, and I don’t want to list it and people will see how long has it been on the market and become gun shy. What do you all think and any better methods to advertise it without listing it for the reason instated above.
Thank you
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I suppose that I do not know enough to "tell" you what to do but from the information that you have given, I will make a few observations.
I would be a little concerned about buying a house that someone else could not sell earlier unless you can spot a potential problem. Is it something with the house itself that is not appealling or is it in a bad location? Is the house in an area where most people do not make enough money to afford a house with that type of payments? Large local layoffs? I am not sure what the average wage earner makes in that area but that price alone in this area would severely restrict the number of people that would be able to purchase the house. What are your plans for the house if you purchase it, flip, rent, etc.??? Have you run numbers to make sure that it would be profitable in a scenario that is likely to happen??
Sorry to ask so many questions, but if you can answer them, I think you will get more help for people on this site. Looking forward to your reply!!!
jameel,
If you like the house well enough to continue put it under contract subject to inspection and appraisal and subject to partner approval. This will lock it up.
At the very least get a home inspection done while you do the other facets of your due diligence. Mike had good suggestions that you should find answers to. Good Luck.
Dave
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"Opportunity is missed by most people because it is dressed in overalls and looks like work." (Thomas A. Edison)[ Edited by dealfinder on Date 07/09/2004 ]
Thanks mike and Dave,
To answer your question, I don’t find anything that is not appealing to me, I have better feel to it than other houses that I bought and not felt good about it and still made money. Location is a great location, nice neighborhood, cul-de-sac lot on top of mountain, potential winter view when leafs fall from tree blocking the views” beyond the point”, as for the property price its average for area and square footage if not little below. Does not need any work. Plans for the house is really flipping it my first choice, Like I said in my post I would love to live in it but its about 30-40 min from where I live.
Dave I thought about the inspection part I guess If I decide to I need to do it soon, because they want to close before end of July before the bank takes it, it is being assigned to me by another investor for that price and the seller will come up with the difference at closing about 25K.
I hope that helps looking forward to your replies.
Thanks
judging from your info. there is some reason it is not selling. priced to high for the area or problems with the house itself. if you continue to buy and find no problems in either case i would buy knowing full well past history and be in a finanical situation where i could hold for a period of time. i would pass if i could find the problem...kenmax[ Edited by kenmax on Date 07/09/2004 ]