Mary Lee, Both Buyer and Seller in 1000 allison dr., va...

Should I buy out my Orinda tenant in common for a great price?

Asked by Mary Lee, 1000 allison dr., vacaville Sun Nov 25, 2007

The question is this basically - I have the opportunity to buy all the equity in the house (I am a tenant in common) for 159K . The appraised value two months ago was only 850 even with a few problems and a loud pool behind it. It is a huge yard for one person to keep and I keep telling myself - keep it keep it. I paid over 100K down on it myself and my friend did the same. If we sell the house right now I just don't think it will sell well. The two tenants in common don't really want the Orinda home. However, an offer has been made from one tenant to the other - give me 159K and you can just take over payments of $3200 a month and of course our really big taxes go along with that. My attorney said that buying out the other tenant at a selling price of 600K, getting all equity for 159K, and no hassles, just keep my name on the loan and move back in. Of course it is a gamble. Do all home improvements have to be done by a liscensed contractpr in Orinda?

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3
Value is 10% lower today........
comps from a couple months ago relate to a seasonal surge in demand plus a drop in interest rates directly after Bear Stearns failed.
In June......... market values collapsed.
Interest rates soared........bringing the market to a grinding halt.

Mortgage financing has NEVER been harder to get......

be extremely careful

no sustained real estate appreciation until 2011
0 votes Thank Flag Link Thu Jul 17, 2008
Yes! Do it!
Of course, you need to be able to make the payments - so make sure you are comfortable with that.
This is not one of those difficult decisions to make. You are faced with a good opportunity to make some fast equity. Take it.
Worse case, you will have to sell the whole property later if the payments get too much to keep up with. Although in that case - you are going to win too with a much larger walk-away sum.
Best of luck!
0 votes Thank Flag Link Sun Nov 25, 2007
Mario Pinedo,…, Real Estate Pro in Beverly Hills, CA
MVP'08
Contact
Hi Mary Lee,
Just as in any area, Orinda requires a licensed contractor to pull permits for many renovations. That's not to say the majority of homeowners take this step; as an Orinda broker I see many unpermitted additions, modifications, etc. For the specifics on buying out another tenant-in-common, your attorney or accountant can give you the best advice. We can tell you that the Orinda market remains strong, even in this slower time. We still see multiple offers on some properties, especially in the over a million price range.
0 votes Thank Flag Link Sun Nov 25, 2007
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