I am getting a townhouse in Loudon County, Ashburn VA for 460K that has been assessed for a value of $512K by the county for tax purposes. The house has 2800 sqft 4 bed/3.5 bath and 2 car garage. The seller is doing a FSBO and hence the low price. Comparables in area are selling for 485K. Is this a good deal or should I wait for some more time for prices to go down further? Given the rising interest rates is it a good investment to live in for next 5 years?
2006-06-28 03:25:34 · 7 answers · asked by GreenAlien 2 in Business & Finance ➔ Renting & Real Estate
The owner of the house is known to me and he is leaving the country for good. Moreover he has another SFH that he will use to maintain his investment, hence he is selling it for cheap to get rid of liability. The comparables in the market have been sold for anywhere between $465-$500K in the last 3-6 months.
2006-06-28 03:33:46 · update #1
It's a tough decision, cuz no one knows exactly what the market will do now. It sounds expensive to me, but I bought in a more rural area, so perhaps prices are different there.
When you use comparables, I'd look at sold prices, not asking prices...I assume you are. Also, look at VERY recent sales only, because something even 3 months ago was in a very different type of market. Prices are definitely dropping, but rates are also definitely going up. I'd make a lower offer and see if he takes it...like up to 20% lower, just to see. I think it will be good to buy sometime now, but I like lower prices if you can get them.
2006-06-28 03:28:06 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Find out why the seller is wanting to sell the house...Especially if you are doing this as an investment..
Depending on the sellers circumstances for wanting to sell the house you may be able to get the house for less than what they are actually asking. A lot cheaper..Perhaps .50 on the dollar. Remember everyone circumstances are not the same. Meaning this person may not be desperate as of yet to accept the offer you give them. Don't be afraid to ask questions.. Also find out how long the house has been on the market. That's another sign that the seller may want to get rid of the house..Sitting too long on the market.
Motivated sellers...Needed to sell their house yesterday.
1. Divorce.
2. Purchase another house, and paying two mortgage payments.
3. Lost their job, not able to keep up with the payments, worried about their credit, and the house going into foreclosure.
If there are any repairs needed tell the sell you'll make the repairs. By offering to make any repairs on the house if needed. Gives the seller an outlet for not spending money they don't need to before selling the house. You can include that amount into the offer you make them..
For example..You see their asking price is 485K..You could make them an offer at 255-320K depending on the cost of repairs. Have a contractor to come out to assess the repairs for you, and give you a cost of how much it will cost..include that amount in the offer.. Again, it depends how badly they want to get from under the house.
Also do the research to find out how long it's taking for homes to sell in the area...You did the comparibles for how much the homes are selling, do the math for how long it's taking the homes to sell.
Keep in mind..Town houses take longer to sell. At least in my area it does.. One other thing I forgot to mention..Tell the seller you'll pay the closing cost as well.
2006-06-28 03:40:23 · answer #2 · answered by WhatEVER27 4 · 0⤊ 0⤋
although you are not using a realtor, i still HIGHLY recommend that you get a home inspection and an appraisal done on the property IMMEDIATELY, and before purchasing.
this will let you know what condition the home is in, as well as the current market value of the home. this will be extremely helpful to you.
ps: assessed value of home means nothing more than what the county says it's worth for tax purposes only.
best of luck!
2006-06-28 05:46:24 · answer #3 · answered by thetoothfairyiscreepy 4 · 0⤊ 0⤋
it sounds good on the surface--- but get it inspected for defects. No one sells a home that much under fair market value with out a reason!
2006-06-28 03:30:22 · answer #4 · answered by golferwhoworks 7 · 0⤊ 0⤋
Interest rates are not going down. It seems as if you've found a good property, value wise. If you like it, esthetically, then take it while you can. If you wait, chances are your rate/payment are going to be higher.
2006-06-28 03:29:42 · answer #5 · answered by Tom S 3 · 0⤊ 0⤋
If you plan on living in it and depending on the market in your area but it seemsl iek a good deal.
2006-06-28 03:29:32 · answer #6 · answered by royder1976 3 · 0⤊ 0⤋
i dont no
2006-06-28 03:29:24 · answer #7 · answered by Anonymous · 0⤊ 0⤋