i’m not CHP. i am a car nut, and also have a lead foot, hence the 23109VC handle… 🙂
like i said, i’m not an expert in mortgages, etc..and i know enough to think that putting down a purchase price that isn’t legit is probably a bad idea… but the way he talked about it, it seemed like it was fine. i asked if it was legit and he said it was… but i still wasn’t sure.. hence the post here.
i’m not going to do anyting that isn’t 100% legal. i am a moral and ethical person. i’m all about getting a good deal.. but if it is NOT legal.. then I’m not going to do it.
basically, after running the numbers, the only way this purchase would make sense is if the house sold at or near 300k…. and I did the standard 80/20 with the higher rates…. or i got this “loan” my lender mentioned where I got 100% of the price into a first at a lower rate.
i ran more comps ont his house via zillow… by looking at the actual recorded sales and while some of the older sales were going at about 245-250/sq ft…. that was older. the more recent sales are at about 211-220/sq ft.
a very recent comp was a 2400 sq ft home..a bit larger.. but it sold for $517k. 2440 sq ft. = 211/sq ft. it’s the same tract, same builder, 200 yards away..just bigger/2 story. i know smaller homes sometimes aren’t the exact same price per sq. ft… but it’s close enough.
most of the homes seem to be selling at this price.. so even using the 220 figure.. x 1875 sq ft… (my home’s size) you get to $412k. using the $211 figure you get to $395.
my guess is that if this home listed tomorrow…a listing price would be at $420… it wouldn’t sell for over $400k. this gy will maybe pocket #375-400, minus his commissions.. hence that’s why he’s offering it to me at $350k…that’s about what he will get – which also happens to be EXACTLY what he owes. i looked it up on the property records.. he owes exactly $350k…. he bought for about $450k.. but his loan wa only $350k. he just wants to walk away fro what he owes.
at $300 it’s worth buying. at $325 it’s *maybe* worth it. at $350k i’m better off renting another year and watching the arm tsunami hit and see everyone continue to lose their A$$.