Home Buying in Ocean City>Question Details

Jak1604, Home Buyer in Ocean City, NJ

Hello. I am trying to buy a house in a resort town of Ocean City NJ. We put an offer about 6 months ago for 850k and it was rejected. House is list

Asked by Jak1604, Ocean City, NJ Sun Feb 21, 2010

Hello. I am trying to buy a house in a resort town of Ocean City NJ. We put an offer about 6 months ago for 850k and it was rejected. House is listed at $1.1 million now. I believe the house is way overpriced. Also I don't have enough down payment. I spoke ot the owner and she is very interested in coming up with a solution. I mentioned a lease purchase and she wasn't interested in that. Any other ideas??

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Hi Jak1604, your comment that you "think" the home is over-priced causes me to ask if you are working with an agent. If not, you should be - now if this is a for sale by owner and you have a relationship established with the seller which includes having seen the home without an agent, the agent may have trouble arguing that she/he should be paid. But you will surely benefit from the services of a good agent.

One of the most important things we do is assist our clients with market and pricing analyses - a good pricing analysis will answer the question on where this home should sell in current market conditions - and that is what you and the seller need to focus on - what is the right price in today's market.

My recommendations:
1. Get a good agent to help you. Choose one that knows the market and inventory cold, and has the analytic skills to pound out a sound pricing analysis;

2. You need money to buy a home - if you don't have the down payment to support the purchase then save or find resources like family that may be able to help. Talk to a mortgage rep to discuss options - here too, just like a real estate agent can take the mystery out of pricing, a mortgage pro can answer the questions on the financing side. Need a good one, let me know, I have several I work with;

3. Nice idea on the lease/purchase idea but if the seller has rejected it, then move on to other ideas. Here again you need good resources to sit down at the table with you to discuss options. You can talk to them about holding the mortgage as Debbie suggests - but while it may get you over the hump if you don't qualify with the bank, but if I were advising the seller I would caution them to carefully evaluate your credit worthiness, ie ability to repay.

4. Bottom line, align yourself with the best resources - agent, mortgage rep, attorney and if you lack funds, focus on saving $$ so you are ready to buy. It is a great time to capitalize on relaxed prices, low interest rates, and the tax incentives - but you want to be sure you buying within your means and getting a good market value. There is no reason to go this alone, so get help and good luck!

Best,
Jeanne Feenick
Unwavering Commitment to Service
Find success at http://www.feenick.com
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Mon Feb 22, 2010
Jack,
Contrary to what the news would have you believe, there are still a few financing alternatives for people making a purchase without 20% down. As for your offer of 850k for a home that the seller is asking 1.1 million.... Without knowing the actual unit I oviously can't say if her asking price is exessive or not. What I can say is every seller has a different set of circumstances and if you offered 6 months ago and both parties have yet to agree on an adjusted price, it may be time for you to move on to other homes you like. I have been a Realtor in Ocean City for nearly 10 years and know market well. I also would be happy to try to connect you to a mortgage bank that can work with your lower deposit money parameters.
Carl Bradley ReMax of Ocean City 609-399-HOME.
0 votes Thank Flag Link Wed Mar 31, 2010
Hi Jak, I am not sure if you have found the solution to your housing situation, but from what you say it seems the owners is willing to work with you to a degree, she wants to come up with a solution. If that is the house you want and your Realtor has shown you comparables that make your offer of $850,000 reasonable then it seems to me it may be in the best interest of a solution for you to all meet face to face and see how you can generate a solution. I have some ideas, but it would depend on the the amount the seller owes and what it is she needs to do once it sells? Has she shared with you what her mortgage amount is? It may be that she is unable to accept $850,000. If your Realtor is not familiar with creative financing please feel free to have them give me a call... or contact me via my website. http://www.lindaconner.com
0 votes Thank Flag Link Sun Mar 28, 2010
Hello Jak1604
If you want to buy a home in Ocean City there are many ways to make sure this happens it takes a broker who is willing to work with you in putting together a deal that makes sense to all parties which is not always traditional financing. I can understand why she would not be interested in a lease purchase they have a bad wrap and they can be very complicated for sellers who just want to get out.

There are many other ways of putting a deal together if you want a Broker who knows that market and is able to make recomendation as to financing or other options that maybe available then you need me. I am a buyers broker and can show you many ways to make a deal work for you as well as a seller that will not be scary. The other issue is what ever other things that can be put together in financing will the person be able to afford the payments and pay off the debt.

If you would like to know more about how to buy in Ocean City then contact me at 800-610-3599 or visit my website

I would like to be of service to you

Tim Robbins Exclusive Buyers Broker

Better Homes Realty
Web Reference: http://njbuyersonestop.com
0 votes Thank Flag Link Tue Mar 23, 2010
Hi Jak- Let me say I live, year round, in OCNJ. There are many things to choose from...if that homeowner says no...look for something you can afford and move on. Many properties "sit" because homeowner thinks it worth more than it is...sad but true. It is usually a personal and emotional as well as a financial issue. Perhaps they owe more than the $850 you offered...therefore, they CAN'T accept your offer. I say, keep looking for what you want...something WILL come along-

Good Luck-
0 votes Thank Flag Link Tue Mar 23, 2010
Jak

If the price of the home is listed for 1.5 most likely it is worth today around $850 to $950 but not having enough money down does create a seperate problem maybe you can get a sellers second on the property she most likely would not except a lease purchase because she is either upside down on the property or she can receive more in rents for the summer. I am very up on Ocean City this was my main market for over 16 years as a Buyers Broker. You may want to consider looking into other properties or finding out what her motivation is and where she is as to mortgage amount verses sale and value. If you would like help contact me
Tim Robbins
Better Homes Realty
800-610-3599

info@njbuyersonestop.com
Web Reference: http://njbuyersonestop.com
0 votes Thank Flag Link Tue Mar 9, 2010
Hi Jak,

I see your posted question and I would like to ask you a question. The subject property you feel is worth $850 but you dont have enough down money, how much down money do you have? When buying realestate you often need to back into the deal to see what you can afford. There is no reason to get your hopes up on a property that you may not be able to afford.


I think I know the property that you are looking at and there is a reason why the seller can not do a lease purchase. If you would like a few other options give me a call.

Edward ( Augie ) Augsberger

Weichert Coastal REO / Short Sale Division
Direct # 609-338-1189
Office # 609-523-1112
0 votes Thank Flag Link Thu Feb 25, 2010
Jak, I may have a solution if you clarify...

My main questions are, what price is the seller agreeing to now and how much do you have for a downpayment?
0 votes Thank Flag Link Sun Feb 21, 2010
Jak - are you saying the seller will now entertain your original offer of 850,000?
How were you planning on handling this purchase 6 months ago with little down payment?? What was your plan then?
Obviously, you need to first agree on a price. Do you have an agent?

One option is that the seller holds the mortgage.

Just how much do you have to put down? Can you comfortably handle the payments and taxes?
Lots to think about.

Good Luck.......
0 votes Thank Flag Link Sun Feb 21, 2010
I would be glad to help you out but I would need more information. There are plenty of options out there. Give me a call at 609-432-8025 or e-mail me @ mawagner@kw.com we can discuss what would work best for you.
0 votes Thank Flag Link Sun Feb 21, 2010
Without knowing the particulars of the property, I couldn't comment on its value. If you feel that the property is overpriced, you should ask your agent to provide comparable sales that justify the value of the house. Most good Buyer's agents try to get their client the home that they want at the best price for them. Don't believe the hype about agents trying to drive the price up so we can collect a higher commission. A satisfied client is far more valuable than a few thousand more in commission. If your agent is able to justify a higher price based on comps and the seller is not willing to budge, you could ask the seller to hold a second mortgage. Determine what you can comfortably put down, what you are qualified for a mortgage and ask the seller to hold the balance. Be careful not to over-extend yourself financially. The fact of the matter is, you may not be ready for that Million Dollar Home just yet. Maybe you should look into something for a little less and upgrade when finances change and you gain equity in your vacation home.
0 votes Thank Flag Link Sun Feb 21, 2010
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