My brother wants to buy a home; however, it has been empty for two years. Doesn't this change the value?
2007-03-10 09:02:31 · 5 answers · asked by Catherine F 1 in Business & Finance ➔ Renting & Real Estate
The REAL QUESTION here ... WHY has the property been vacant for TWO years at this point in time?
IF this is true ... there are a couple of situations where I would DEFINITELY Want to have investigated ... and they do involve a bit of time and money ...
1. IF I were your sibling ... I would definitely HIRE someone to do a Walk-Through and evaluate the home's condition BEFORE an offer is made .. and this needs to include documentation (written) of all the problems that they notice when they complete this review.
2. When this evaluation is done (and you have the results), use those results as a basis to NOT give an offer at the asking price (especially if you know there are conditions in the home that will require major work or expenses within a year or two -- like roof replacement, water damage, plumbing work, electrical, etc).
3. SEARCH the property specifically to see if there are any problems with the Deed or other problems. SOMETIMES ... the home won't sell because ... well, let's just say bad things happen (like a crime was committed there).
4. IF it is sitting that long on the market ... you know that it is WAY overpriced for the market conditions ... and yes, that is another reason to be careful.
5. IF it is as a result of having multiple 'heirs' (or a messy divorce), then again, be careful. This could be a contentious, nasty, greed-filled disposal of the asset, and yes, again, go into this with your eyes open and mark what you KNOW is difficult for the sale of the home.
6. ON your first walk-through, DO take photos .. and yes, that way you can also make your own decisions on what is good, bad or going to take a LOT of work.
2007-03-10 09:22:38 · answer #1 · answered by sglmom 7 · 0⤊ 0⤋
The value of any property depends on what someone is willing to pay for it.
If it's been empty (and for sale) for 2 years, I'd say no one is interested in it at it's selling price, therefore, your brother should offer a lot less than the price listed on the property.
2007-03-10 09:07:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It doesn't change the value of the house, since the structure is no different than when the owners/tenants were there.
When he moves in he will need to make a lot of repairs, due to the house being empty, mainly plumbing.
ST
2007-03-10 09:49:42 · answer #3 · answered by Anonymous · 0⤊ 0⤋
A house will only depriciate in market value due to it's comparables or area decline.
It may also be functionally obsolete. Is the property stigmatized?
Ask for a Free CMA from at least 3 Realtors
2007-03-10 09:12:48 · answer #4 · answered by Bob 3 · 0⤊ 1⤋
no. after your brother buys it it won't be empty anymore...
The only effect that could have on value is as an indication that the sellers are very eager to sell, and may respond to a low-ball offer.
2007-03-10 09:14:53 · answer #5 · answered by sdmike 5 · 0⤊ 0⤋