Home Buying in Manahawkin>Question Details

G6r, Home Buyer in Lavallette, NJ

if a home was just reduced from 379,000. to 349,000. what should i offer?

Asked by G6r, Lavallette, NJ Thu Nov 18, 2010

The area is saturated with homes for sale. It is a duplex amongst all single family and is soley a rental, and investment property.

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Answers

11
Hi G6 -

Find a good agent to pull the comps for you.. Due diligence is the key, complete your research and make a sensible offer!

John Sacktig
Orange Key
2 votes Thank Flag Link Thu Nov 18, 2010
Hi there, good advice so far, I would just add that particularly if you are looking at this as an investment property, strip away any emotional attachment - make it ALL about the numbers, and be sure to build in a buffer to cover a period of non-rental. Offer what the numbers support, if they bite great, if not, move on to the next one.

....and repeat.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Sun Nov 21, 2010
Real estate will continue to decline so you need to get next years(or the year after) prices today. One must not be a bag holder. Do not make someone's overpayment mistake your mistake. Consider parking in gold / silver until many more sellers are flushed out of realty.
0 votes Thank Flag Link Tue Aug 2, 2011
For an investment property (assuming you will rent both sides) comps mean less than monthly (or annual) income from the property. You should work your numbers. first, find out what both sides are renting for and get a handle on the number of months you can expect the units to be vacant between leases. This will tell you what kind of total income you can expect.

You will want to know what you will pay per month for the purchase loan. You also will want to project anticipated maintenance costs and other costs such as utilities and property taxes.

Once you have a handle on all your expenses, the math should be pretty straightforward. Reduce everything to monthly figures, then subtract expenses from income and see if you can make enough money to create an acceptable return from your investment.

Best,
Ron
0 votes Thank Flag Link Sun Nov 21, 2010
You should find out what the comps tell you its worth and then try to find out the sellers motivation in selling and what they own on it. If there are many homes on the market that are similar, find out what the absorption rate is to see how long it could take the sellers to sell and present that information to their agent. Finally, do the math and see just how good of an investment it actually will be, based on prior rent roles, etc. Depending on how much you have your heart wrapped around it, (which considering it's an investment property, shouldn't be too much!) go in low. You never know.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Sun Nov 21, 2010
How much does it rent for, if your only going to net $1000.00 per month after monthly expenses, its going to take more then 30 years to see a profit, and that doesnt take into considertion, repairs, and maintnence for those thirty years. The price of this duplex makes me doubt that its a profitable rental.
Web Reference: http://www.sjrates.com
0 votes Thank Flag Link Sat Nov 20, 2010
If you are purchasing an investment you need to ask your agent to run the comps as everyone has said, and obtain past rental information on the property. Run the numbers, and see if it provides you an acceptable return on investment (ROI).

Make sure the Stafford Township Building office recognizes it as a duplex.

If you're planning summer rentals in the Beach Haven West section of Manahawkin, please take note of the lagoon location (access to open water) and lagoon depth. These will be important to comps and for rental purposes if you purchase.

Laura Giannotta
Keller Williams Realty - Atlantic Shore
609-384-6121
0 votes Thank Flag Link Fri Nov 19, 2010
If you are talking about the property in Manahawkin,that price reduction is almost 3 moths old now and that property has been on the market for over 2 years.
If you are not working with an agent and you'd like more information on that house we would like to be of some help.

Feel free to email or call us.

Curtis Lee ~ Eileen Murphy
Prudential Zack Shore Properties
1-800-594-3315
info@MurphyLeeTeam.com
0 votes Thank Flag Link Thu Nov 18, 2010
Agree with Marge. Definitely have your agent run sold closed comparables within the last 4 months to give you an idea what the property is worthe in that area in today's market Good luck!
0 votes Thank Flag Link Thu Nov 18, 2010
There is no proper answer for that. Even if there are limited comps there will be some to help determine a reasonable offer price. Just stating the list price does not determine a reasonable offer. The reduction could be a reduction that is still overpriced, or it could be priced to sell, not a one size fits all situation.
0 votes Thank Flag Link Thu Nov 18, 2010
Ask your agent to do a CMA for you and make your offer based on that information
0 votes Thank Flag Link Thu Nov 18, 2010
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