This is the first time I have ever purchased real estate, and both parties involved are selling by owner. I am considering a condo in a complex that ranges in price from $170,000's to $220,000's for 1, 2, and 3 bedrooms. The complex is 30ish years old. I am considering a 2 bedroom and the highest a comparable unit has ever sold in the complex is $192,000.
The unit I am interested in was appraised for $186,000 and everything in the unit was listed as in good condition. BUT the carpet is stained and torn, all the appliances but the fridge are still original and are rusted and dirty, the furnace is still original, and the kitchen floor (replaced 15-20 years ago) is peeling.
I have a home inspection scheduled for this weekend and the current owner is a very stubborn and doesn't seem to understand anything we discuss; he is still convinced he bought for $176k 9 years ago, even though the property transfer records say $116. He has done nothing, NOTHING, since he moved in. Any advice?
2007-02-16 07:29:04 · 12 answers · asked by Its Me 2 in Business & Finance ➔ Renting & Real Estate
2 answers for you:
1. Make a lower offer - deducting the amount it would take to make the improvements that need to be made. Have the home inspection report in hand or include pages from the inspection with the offer so the seller sees what the problems are that need fixing. That is one way to go, the other way -a more practical way - #2. Find another condo to buy. There are thousands of them out there in all price range and all conditions. I used to sell Condos in a bldg downtown. I worked for owners of bldg and they would do anything & bend over backwards to make a reasonable deal happen.
But, when you are dealing with a private owner, no realtors involved, they can be unreasonable & stubborn and usually think their property is worth more than it is. Tell him if he made all the updates and repairs, the price he is asking would be reasonable, but you are going to have to put money into the place to get it up to date and repaired. Not what a new homeowner and first time buyer really wants to do - unless they want a fixer-upper
.
Anyway - good luck and I hope you can talk some sense into him and get the condo you want.
2007-02-16 08:31:49 · answer #1 · answered by Judi H 1 · 1⤊ 0⤋
You seem to have answered your own question. If it seems too high -- it probably is, according to what you described. For sale by owner is not and Arm-Length transaction most of the time. The seller does not have a Realtor who would talk some sense into him. Usually when there is a Condo complex that is about 30 years old, some units are probably completely renovated, those are the ones that go for maximum price, the units that are all original, should sell for the price closer to the lowest comp. Forget what appraisal says, it is not a precise science. If the unit is all original, figure out how much it will take you to completely renovate it and add to what you're going to pay. I would say right now, I would just walk away and wouldn't even waste any money on inspection. Let that guy sit on it for a while and see if he gets a little less stubborn later. If he can't sell it, he will have to list it with a Realtor, so even if he gets the same 186K, he will have to pay 5-6% to a Realtor, so that will be 175 after commission. I suggest to you get yourself a Realtor, and look for a place, For Sale By Owner is not a better deal, contrary to popular believe.
Trust me if there were two Realtors involved, then your Realtor would talk to his Realtor and the price would reflect the true condition of the place.
But for Now WALK AWAY. This is a bad deal. Now is not the seller's market.
2007-02-16 07:49:51 · answer #2 · answered by Alexander K 3 · 0⤊ 0⤋
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2016-05-24 07:27:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Find another unit. The last thing you want to do is pay full price for a home that needs so much work. You'll be upside down for years, or have to live with the peeling floors.
Keep looking, unless you can get the seller to agree to fix everything on your inspection at his expense.
My best guess: He owes $176K. Which is why he can't afford to hire a realtor. So he'll say no to any offer that doesn't make him whole. And that's not your job to keep him happy. And he'll keep paying his mortgage for months instead of taking a lower offer and saving him from making those payments, ultimately he'll have to drop to a fair price and suck up his losses. But don't take those losses on yourself.
2007-02-16 07:46:54 · answer #4 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
Your bank is going to run their own appraisal when they approve the mortgage. But the appraisal is not always a good indicator of the sales price. Market demand can make the house sell for WAY more than the appraisal, and sometimes even less than the appraisal if the market is slow. If you don't agree with the price, don't buy it.
2007-02-16 07:39:14 · answer #5 · answered by dcgirl 7 · 1⤊ 0⤋
Ok, the appraisal came from him and it's not the bank appraisal.
Do what most have said, make an offer that you think is fair. If the owner doesn't believe it's a fair offer then move on to another condo.
El
2007-02-16 11:13:24 · answer #6 · answered by El_Nimo 3 · 0⤊ 0⤋
Look, there's nothing you can do to force the condo owner to sell for less than he's willing to accept.
Make your offer. Give him the facts, and tell him that's what the market is right now. If he refuses, or you can't come to an agreement, move on to another prospect.
2007-02-16 07:33:25 · answer #7 · answered by Uncle Pennybags 7 · 3⤊ 0⤋
Get your own appraisal done. The seller's appraisal may be high, since he is the one paying for it.
If you are trying to buy FSBO property, please use a real estate attorney. They will save you much more than you will pay. Don't sign anything without letting an attorney look at it. $500 is a cheap insurance policy for a $200,000 investment.
2007-02-16 07:35:40 · answer #8 · answered by J.R. 6 · 2⤊ 0⤋
Okay, right now I am too tired to explain this to you but right now is not a good time to buy anything, especially a condo for over $90,000.
Trust me and goto www.housingbubbleblog.com. You sound fairly educated so I'll let you do you own research and answer your own question.
Good luck.
2007-02-16 18:34:40 · answer #9 · answered by Chrisusc 2 · 0⤊ 0⤋
Well, the bank is going to want their own appraisal, and they won't lend you the money if the loan is more than the appraisal. Pay for your own appraisal if you really want to know.
2007-02-16 07:32:23 · answer #10 · answered by Blunt Honesty 7 · 1⤊ 1⤋