Thanks for the input Analyst. I’ll definitely keep all your points in mind.
This is a bit of a “sweet heart” deal due to the family friend tie. The owner’s father passed away some months ago and left this house to his son. At this point the son just wants to unload the house – and I agree that people don’t generally leave that kind of money on the table regardless of the circumstance. The 20% figure was just a number that I estimated based upon my own research. A friend of mine pulled recent comps in the area and I know the area very well also. Based upon this info., I figure the house could sell today for $290-300k and the number being kicked around for the sale is $240k.
As for the condition, I am going to make the deal contingent on a home inspection but what I do know is the roof is newer (5-7 years old), and the seller did say that the plumbing is functional but needs to be updated since it is galvanized steel. The house is on a raised foundation and I am going to primarily rely on the inspection to find out about the electrical, HVAC and pest/termite issues.
The house has been maintained well but you never know what lies beneath.
In terms of the house specs:
Location – LA County
Sq. ft. – 1600 house, 7000 lot
Year built – 1954
3 bd / 2 ba
All this said, I am proceeding with caution but don’t think this person is concealing any deal breaking info. since there is a family tie.
