OfflineI am interested in a piece of property that is on 5 acres with a home, barn etc. The owner wants 99900.00 for this property and when I do the comps the house with improvements is only worth 51,390.00 The seller is asking 48,000.00 way over appraised value. I was wanting to do a Lease-Purchase Option with this property but I learned that the owner says they need the money and cannot go lower nor can they do a Lease Purchase Option as they need the money up front. I do not believe in the current market they will not be receiving this amount of money.
I feel like the Realtor is not encouraging the seller to be realistic with this property but the realtor is asking me what I think about their offer. Other properties on this street are selling on an average of 60,000.00 at this time. I see this property as an opportunity because the property is nice but how do I motivate the seller to deal creatively here.
JButcher
You might have to just wait it out. It might take awhile for the seller to realize that no one will pay that amount, and for the denial to lift. Also, there may be an emotional attachment that over time they'll let go of. Of course, if it's something YOU really want (you didn't say the purpose you intend for the property) take the future value of it into consideration. Just because it's worth so little now doesn't mean that it won't be worth much more in the future. We bought a house a couple of years ago from a friend at full price, $92,000. 2 years later, in a DOWN market, it is appraised at $120,000. And, of course, the renters are paying for it anyways.
Take everything into consideration.
Good luck,
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Rina,
Thank you for your assessment of the situation. I think they owe too much on the property as they have put improvements in and could not sell for less but you are right I might be off base and perhaps there is a personal attachment to this property. Yes, I wanted to build a Kennel there and the property was just beautiful. I will go back and do my homework on it and perhaps in time they will change their minds.
Just one question. When you look up the appraisal value of the property with the county it only tells you what the apprasial district assesses what the property is valued at. I was going on what the realtor told me and now I think I calculated incorrectly as well. I will have to search the actual value of the property. I may have miscalculated.
Thank you for your feedback and sorry I missed the call last night. I was working and in the middle of a storm here I plugged into the call and caught the tail end of it. Thank goodness it will be placed on audio review.
Thanks for all you do!
JButcher
is the property worth? whats the assessed value? SULLY.
YOUR HERO, SULLY
JButcher,
I appreciate all that you contribute to the forums. You are really an asset to the community.
Just one question. When you look up the appraisal value of the property with the county it only tells you what the apprasial district assesses what the property is valued at. I was going on what the realtor told me and now I think I calculated incorrectly as well. I will have to search the actual value of the property. I may have miscalculated.
I'm thinking you meant assessed value through the county. Here we have assessed value and Fair Market Value in the county tax records. And different townships have different mill (?) rates.
I still have a really hard time with comps. And usually the county's FMV is less than what the appraised value ends up being, so I have to say I use that as a base. I'm not saying you should do that. I AM trying to do it the "right" way now, with comps. I'm just saying that is what I've always done.
See if you can get a realtor to get you comps. That would be best.
Thanks again,
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
JButcher! Sounds like you've done your research and and if you feel like the property is overappraised, then walk away. Keep looking for more properties. However, be courteous and and politely tell im that you really appreciated his time. Make sure you give him your name and your phone number and part as friends. If he doesn't get any calls on that property within months, i gaurantee he will be calling, and then you might be able to offer him a little less than what you originally offered. Good luck!
____________________
Lloydsap
i have friend who have great deals that he can get hold to but neither one of us have good enough credit to put the deals togather will the hard money lenders that we have available through pmi work for me.
Bilal S Ali
remember Dean said full price is not always bad and if some one is paying for it.
Mr.Bill
Rina,
Thank you for your take on the situation and I seem to get ahead of myself at times but I am making progress. I am having a difficult time with comps but there is nothing like good old leg work. I have a meeting with my realtor and will see if I can make it easier on myself that way with her providing that info. I may come back to this property or rather give the seller a little room to think about ths situation. Moving on and looking for other properties.
Thank you for your imput,
JButcher
LloydSap,
I think that is exactly what I will be doing. I Appreciate your feedback. I shelfing this one and need to move on to some other properties I have located.
I will just give the seller a little breathing room and leave the door open.
JButcher
Hi Jackie, Yeah I would follow everyones advice and maybe in a little time, the owners will start thinking, hey this property isn't making any money just sitting here, maybe i will call that lady and take her up on her offer.
cindy REI
Just a note- If you dont have a realtor to pull comps for you (the best way)you might want to check out the sight electronicappraiser.com for $9.90 you can get comps of houses sold in the area of any address you type in. It gives dates sold, amounts and a little map to see how close they are to the one your interested in. It has helped me alot.
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
Laura,
Much appreciated I will check this particular site out!
JButcher
I have saved the site; http://www.electronicappraiser.com/ to my favorites.
Has anyone else used it and found it to be accurate?
Laura, not that I don't believe you, please understand that I like to know that others, particularly the DG Superstar/inner circle people approve of it. I would hate to use it if it proved to be in-accurate.
Thanks for the link Laura!
Deb
I always welcome advice from the inner circle group myself! If you dont investigate things you're not doing your job right! My check and balance was to use it and then check it against what my realtor ran and it came in right on target.
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
Laura, I just checked out this sight and it looks great. It offers a lot of information. Do you use it only on the houses you know you're going to make an offer on so you can better determine what you're going to offer?
Thanks,
Roni
Yes, I have only used it on the houses I was seriously considering that were FSBOs. On the few I had a realtor showing me I let her do it. But I found it very comprehensive and on target with FMV - which is the number you need to know in order to figure an offer price that will allow you to make money. So it is worth every penny! Good luck!
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
You always wanted to leave the homeowners with a good impression and i bet you if no one call within a month or two about their property, i have no doubt they will call you again and take up your offer.
I have a deal right now i'm going through the same thing. My realtor called me back over the weekend and asked me if i could go up a little bit more, but i've taken a stand. No one else has made an offer on the same property and soon or later, the bank will have to take the best offer and take it for what is worth. They are the one loosing money just sitting on it, not me. Glad i could help. Good luck and happy investing!
Lloydsap
Lloyd,
My realtor did the same thing. I understand what is going on with this property as they took out a second mortgage and need the money they are asking but I did do my homework with the properties on the same street and what they have sold for. I am also leaning with working with another realtor that is money motivated and working with me alittle. I am moving on too right now and I think you are right. So far this property has not sold yet and I am quite sure they will come down a bit. Until then, Movin on to the next property. Thank you for your advice and good luck to you as well. Let me know if it works out!
JButcher