OfflineI need a little insight with dealing with this owner. We had to move out of the other house that we were in and the house that we moved into has the option to buy. The problem is that the house price that he is asking for is $99,000 with an interest rate of 9% and with a down payment of $3,000. The other houses in the area are going in the $59,000-$84,000. With the high end being houses in really good condition. This house is good but not that great and I know that there are several things that need to be done to make it worth that much again. I would like to owner finance it at least till we can either get a loan from a bank or something else comes and we can actually buy it. How would I go about making a strong offer without offending the guy cause he is still my landlord but I do not want to pay more than $75,000-$85,000 with an interest rate no higher than 6.5% Any ideas will help immensely!
An Owner financed Property.
Posted on: Tue, 10/19/2010 - 14:37
Both of you will never know unless you ask
He might be flexible and if you've had a good history with you, might not have a problem. Explain to him the situation without being abrasive or combative and i'm sure things might just work out
First, Give yourself a break! You've done a good job in your research to make sure that you're buying right.
Second, Give him a break. That $99K may be what he owes(For his loan). I agree that asking won't hurt. The worst that could happen is that he would say no, then you have a choice to continue to stay on other terms or plan a move. Follow your gut.
Third, If you haven't already, Check your county auditors site to see what their tax assessed value is of the house you're in,(For room to bargain on price).
Fourth, You have a lease with the OPTION to purchase (Gives you the choice to purchase or not), Instead of a LEASE PURCHASE (which is I WILL purchase).
Fifth and Finally, You can get yourself Pre-approved for a loan, through an RE agent( who will use their resources to find out for you) or go to your bank and ask. So, you will know the amount of loan you would be approved for. ( If it's not $99k, no worries).
Hope this helps,
Tori
Approach your landlord gently and ask him where he came up with the 99k purchase price. I would explain to him that being familiar with the area and running the comps, you came up with an average of 59-84k.
If you purchase the home at 99k, you will end up with negative equity.
Be open and honest with your landlord, ask lots of questions, let him know your interested in possibly purchasing the home, but the numbers have to make sense for BOTH of you.
Good Luck!!
Kelly
www.ownusahome.com
As a lease option, one of the reasons for that type of pricing usually is to inflate the price some because the owner is carrying the lease/note on the property instead of a bank. Just some thoughts, I have two right now and both are within range of comparables, But still room for some profit.