Home Buying in Chicago>Question Details

arjacobs47, Home Buyer in Chicago, IL

Looking at a total rehab with new everything. Priced 70k more than any property in the area sold for in the last year. What do I offer?

Asked by arjacobs47, Chicago, IL Mon Dec 16, 2013

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Answers

21
Where is your real estate agent? If you do not have one, get one. They will help you determine the best price to offer.
1 vote Thank Flag Link Mon Dec 16, 2013
GOT REALTOR? Before you make an offer, get a Realtor, a buyers agent works for you and get's paid by the seller. They provide:

1. Negotiates the best price by researching properties sold and listed in the area
2. Ensures the property is inspected
3. Finds listings specifically for you
3. Gives you customized tours
4. Explains the process to you
5. Protects you throughout the transaction
6. Guarantees you pay the right price for your home!!!

Without a realtor, you have no idea if you are getting the bargain you thing you should have. Call Manuel Brown - he'll do a great job for you! Let me know if you need a pre-approval.

With warm regards for a great New Year

Mary Kay Laurent
Vice President of Mortgage Lending
marykay.laurent@guaranteedrate.com

http://www.guaranteedrate.com/MaryKayLaurent

o: 773.516.6859 - m: 312.403.4150 - f: 773.328.1740
3940 North Ravenswood , Chicago, IL 60613
NMLS ID: 870598
1 vote Thank Flag Link Mon Dec 16, 2013
Have your realtor check the history of the property, when did the current seller buy it, how much did they buy it for, compared the condition description from the previous sale to the work done. How much would this work have cost you to do it yourself. That would be your price, roughly.
1 vote Thank Flag Link Mon Dec 16, 2013
You and the agent your working with should have a very good chat about this.
0 votes Thank Flag Link Fri Dec 20, 2013
email me at jmichaels@remax.net and I will send you my list
0 votes Thank Flag Link Thu Dec 19, 2013
Offer what you and your Realtor think it's worth to you. Don't worry about offending the sellers.
0 votes Thank Flag Link Tue Dec 17, 2013
Good question. What you offer has to be based on a combo of two factors. First, how much rehab work do you estimate putting into the property. And Second, what do you estimate the MARKET SALES PRICE to be after your rehab/improvements to be. Factor in what the final sales price will be and work your numbers backwards. Prices are going up and have been climbing up steadily for just over 12 months now.
0 votes Thank Flag Link Tue Dec 17, 2013
First you need a realtor , second to find a property .
0 votes Thank Flag Link Tue Dec 17, 2013
email me at jmichaels@remax.net and I will send you my list
0 votes Thank Flag Link Mon Dec 16, 2013
You will want to partner up with a good buyers agent to help you with this -
You so not have to pay the agent and they will be able to assist with all of your needs
0 votes Thank Flag Link Mon Dec 16, 2013
Offer 70K less or if it is an REO you might just have to wait until they lower it. Why would you want to pay 70K more?
0 votes Thank Flag Link Mon Dec 16, 2013
Ask your Realtor. If you don't have one , get one NOW!
0 votes Thank Flag Link Mon Dec 16, 2013
It really depends on the area and the property along with the finishes. Your Real Estate Broker should be able to discuss in more detail based on the details of the property.
0 votes Thank Flag Link Mon Dec 16, 2013
It really depends. Simple maths shows us that if the nicest thing in the area needed $70,000 in work to be exactly the same thing as the subject than that isn't such a bad deal. However, if I was going to do all that work I'd want some sort of profit margin- say 10%- built in so I'd need to pay a little less if that was the case.

The reality is new construction moves price points in neighborhoods and it's usually a good thing but the biggest problem is appraisal. Make sure whatever lender you choose, if you move forward, has an appraiser who understands new construction or he could come back with an incorrect value and jeopardize your deal.

I have great financial resources and also understand the new construction segment very well so I'd be happy to help.
0 votes Thank Flag Link Mon Dec 16, 2013
Ask your broker. They can help better than we can blindly throwing suggestions out.
0 votes Thank Flag Link Mon Dec 16, 2013
Dear Home Buyer,

As Jacqueline stated. Hopefully your broker is doing that for you to best advise you on what you should offer.
0 votes Thank Flag Link Mon Dec 16, 2013
Make sure you keep another 50k free in your bank. This will help pay for all the repairs you'll likely to need after the pretty sparkles of the granite and stainless turn into faulty electrical, plumbing, HVAC and anything else you thought was new. This is often the Welcome to Chicago Quality Construction moment that effects many rehabs in the city.
0 votes Thank Flag Link Mon Dec 16, 2013
Hello,

Are you being represented? If so, have your real estate agent run some comparable's for you. If there are no recent rehabs sold in the past six months expand to a year. If still no comparable's then price will be determined based on improvements. There are many factors in play and we cannot suggest a bid unless we know the property and the sale terms. Good luck
0 votes Thank Flag Link Mon Dec 16, 2013
Thanks... my realtor has pulled the comps and the highest in the last year was 282k, 70k less then they are asking.This wasn't a rehab..
Flag Mon Dec 16, 2013
Where are you getting your information?
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Your REALTOR will be able to provide you actionable data.
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What are the other Totally rehabbed" homes with everything new, on same size lot, same community, within the past 90 days selling for?
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Were they financed? You may have a appraisal advantage.
Cash buyers....you'll very likely need a pile of cash to make up the appraisal difference.
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There are other issues to leverage. You local Chicago REALTOR is your best resource for relilable, actionable information.
0 votes Thank Flag Link Mon Dec 16, 2013
You should ask your realtor to run comps for you. You could also hire an independent appraiser to do comps for you as well. Appraiser will cost around $350.00
0 votes Thank Flag Link Mon Dec 16, 2013
Work with a good realtor who can send you comparable properties in the area. If there is nothing in the neighborhood to support the price you are willing to pay, you will probably run into problems with the appraisal.
0 votes Thank Flag Link Mon Dec 16, 2013
Thanks... my realtor has pulled the comps and the highest in the last year was 282k, 70k less then they are asking. I don't want to insult them but I don't know anything over 300k makes much sense.
Flag Mon Dec 16, 2013
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