Home Buying in 79924>Question Details

Luca, Home Buyer in 79924

Buying our rental? Price is waaay too high....

Asked by Luca, 79924 Sat Mar 3, 2012

My hb and I rented a home that was for sale, and the owner (a local broker) said he'd take it off the market for 7 months for us. We like the house (and the area) but it's priced at 109,000 in 79924! There are homes at that price here, but this house is nowhere near them in terms of condition (our windows our falling out, cracks in the ceiling, rotting shed in the back, and a deconstructed kitchen that will need to be rebuilt. EVERY window will need to be replaced, and the water doesn't work in one bathroom. Oh - and we have peeling linoleum floors, painted tile in bathrooms, and two dead trees (one fell and crushed half the shed)
is offering $80,000 reasonable? We don't know if it will pass inspection, but we kinda like the house and want to fix it up. Besides, he bought it for $60,000 as a foreclosure 2 years ago and made no improvements! Opinions?

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8
I know this posting is a little dated but just to put this out there... Since your currently renting it in this condition, I would simply explain this to him. Odds are that since he can rent it out as is(as you are a current renter) they would probably want to continue to make money off of it. Not to discourage you but as this is an ongoing trend, it does not hurt to ask. All he could say is no. Also, if your interested in the house or just interested in living there because of the area, ask for discounted rent for work(If your handy with tools). Its called Work in exchange for discounted rent. This way you may stay there at a discounted monthly rent and if the landlord purchases the product/material you can have your way without sacrificing money, only time and Labor.

Just a thought,

Jose
0 votes Thank Flag Link Wed Nov 28, 2012
It sounds like this house has seen better days! I think more like $70,000-$75,000 is reasonable, depending on the sq. footage and area its in. Thats more than fair for the owner who bought it for $60,000 and didn't do a thing to it. Have you estimated the cost for improvements? You need to find that out before deciding on a fair price and finding the value of the home in this current market once improvements have been made. You don't want to buy a house for too much in the condition its in and end up spending too much money fixing it up and having more in it than the house is worth. If all the windows need replacing, you may end up in $10,000 just in windows depending on how many windows need replacing. I hope this answers your question. Me and a group of people at KB Realty have an investment branch that looks for distressed properties and we rennovate and flip them so we have knowledge about this sort of thing. Since you will be buying to live in it you can probably pay a little higher price than we would because we need to still be under market after repairs to be able to flip for profit. You can call me anytime and we can talk about this more. If it doesn't work out why not find you a nice resale home in northeast in better condition and price? You can also go to my website to search all available homes in the northeast.
0 votes Thank Flag Link Sun Mar 4, 2012
Buy something better and avoid your landlord/broker.

Best of luck .. Bruce
0 votes Thank Flag Link Sat Mar 3, 2012
Thanks for all the responses! We are just renting, not doing a "rent to own" We rented over the phone moving from the Northeast, when we pulled up there was a "for sale" sign and we threw a fit because no one mentioned it to us! They agreed to take it off the market because we said we would consider buying a possibility but we wouldn't pay more than 90 (all verbal agreements...we hadn't seen the house and were tired from driving for 4 days) To be honest, we have kept our eyes open for something similar, and haven't seen anything we love yet, but we do like this house, and are willing to do the repairs, and yes we are prequalified for a much much nicer home, but we just wat to fix this one up. I just can't figure out how to explain to the broker that it's not worth 109! We're coming up on the house going back on the market and trying to make a decision
0 votes Thank Flag Link Sat Mar 3, 2012
To me with all those problems it sounds like you really don't want the house.
Financing it may be a huge issue.
First get a lender. Get prequalified.
The discuss the condition of the house with him to see if it will meet appraisal.
Then if you really want to buy, pay a realtor a small fee to provide you with accurate values for the neighborhood.

Then if you really really want to buy it, have a board certified real estate attorney to write the offer for you.
Offer what you all together have come up with as a reasonable offer.
See if it works.

Why do you think the value is so much less now than when you originally saw it and moved in? Most of the issues you describe are not new and were there when you fell in love with it. I'm guessing you thought the $109,000 then was fair. Why the big discount now?

Perhaps the better alternative is to find a home in better condition. Good luck.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Sat Mar 3, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Howdy again Lucas
Absestos shingles and what else? Your concern list is growing I think. Sounds like you have some serious questions. You might listen to your questions. You are the drivers seat! You might also have a experienced REALTOR represent you so that you have the best advise and YOUR respresentation and best interests in a high priority.l
Web Reference: http://www.EPHomeSearch.com
0 votes Thank Flag Link Sat Mar 3, 2012
Howdy Luca
Not sure of your address but if you give me the address I will run a check for you of value. If you are going to finance the home it will have to meet the appraisal value and no mortgage company will finance more than the home appraises for. Additionally the mortgage company can also demand repairs if the appraiser so notes. Rent to own is a strange agreement as no one knows what the market value will be at the time of the sale. Many of these agreements end questionably. This is a curious time and definitely a great time to buy.
Web Reference: http://www.EPHomeSearch.com
0 votes Thank Flag Link Sat Mar 3, 2012
I forgot.....we have asbestos shingle.....that has fallen off the house and into our driveway! We calculated it'll take about 25-30,000 to fix her up. (without any major structural issues)
0 votes Thank Flag Link Sat Mar 3, 2012
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