advice on offering on a house

[Critter]

Wow, that’s scary. They are 28 years into a 30 year mortgage and owe triple what they paid in the first place. This is the real danger of HELOCs and borrowing against equity.

[Critter]

Wow, that’s scary. They are 28 years into a 30 year mortgage and owe triple what they paid in the first place. This is the real danger of HELOCs and borrowing against equity.

[NotCranky]

You might also say it is the beauty of buying instead of renting…Ouch ouch ..stop throwing those rocks..LOL
It is a joke.

[NotCranky]

You might also say it is the beauty of buying instead of renting…Ouch ouch ..stop throwing those rocks..LOL
It is a joke.

[Critter]

BTW, since they are elderly, chances are they are retired and that mortgage payment is a burden – especially since it has grown over the years.

Rustico, dodge those boulders!!

[Critter]

BTW, since they are elderly, chances are they are retired and that mortgage payment is a burden – especially since it has grown over the years.

Rustico, dodge those boulders!!

[SD Realtor]

Eccen…

Hear that sound… clunk clunk clunk… that is my head hitting the desk after reading your post…

“I will have to get comps from my agent but as far as asking him what to put down that’s not going to work because he really needs the sale and doesn’t want me to offer too low..”

Are you serious Eccen?

Is this agent a close friend or relative?

Look Prudential has listed this home and the seller is offering 3% as a co-op. At 700k that is $21,000 that is going to be split among your agent and his broker. Repeat after me… “I don’t care about the commission my agent gets. I want to get the best deal possible…”

So not only should you lowball, you should ask your agent to split the commission with you. Even 1% of that split would be 7k for you and that would most likely cover your closing costs. Stand up for yourself because your agent will not be making the monthly payments on this home, you will.

********

Okay so after a quick look the home was previous listed for 270 days with Prudential. As you said they started at 900 and by the end of the listing they were at 799k. Now they relisted with Prudential again at 749k on 6/5/07. This home is in mapcode 1130F2. There have been NO as is ZERO sales in this mapcode in 2007. There is currently 1 home in this mapcode in escrow and that is from the new homes on Emerald Oaks Glen. The last sale recorded on the MLS was the sale on Royal Oaks on 12/15/06. That home was approximately 2500 sq ft and they had a very nice view of the valley. Now I cannot comment on the debt load these people are carrying. What I see on the Realist report is the original purchase back in 1979 for 160k. Now in 1993 there is a loan for 173k and another in late 1993 for 85k. Then in 1999 there is a loan another 165k. To be honest I would assume that one was a refi. I dont know for sure but common sense would dictate that if these people were carrying a heavier debt load they would have refinanced back in 03/04/05 at much lower rates then the 1999 or 1993 terms. So I would disagree with those who implied these people are strapped by the payments they are currently making. Yes this is a speculative statement but I am willing to stand by it.

Eccen I could go on forever with the analysis but I would recommend checking the surrounding mapcodes as well. You have read enough of Piggington to know the prevailing opinion here on whether you should buy or not. I think starting at 675k is not a bad idea. Hopefully they will counter and not totally disregard the offer. How motivated they are is questionable. The home is vacant and held in trust and I don’t see a huge sense of urgency on their part. If you are shrewd, pick a number to hold the line at and be prepared to walk if you don’t get it… then come back to them in a month or two and try again. You may get the home, you may lose it. It is a long hot summer and I don’t see them getting it sold in the near term. I understand you have an extended family so the way that it is laid our may be perfect for you. Also note that the MLS states sale is AS IS. Actually this is meaningless and should not stop you from doing all of your diligence and asking for repairs or credits for repairs if they are needed.

Again, worry about Eccen’s money and not the realtors money.

SD Realtor

[SD Realtor]

Eccen…

Hear that sound… clunk clunk clunk… that is my head hitting the desk after reading your post…

“I will have to get comps from my agent but as far as asking him what to put down that’s not going to work because he really needs the sale and doesn’t want me to offer too low..”

Are you serious Eccen?

Is this agent a close friend or relative?

Look Prudential has listed this home and the seller is offering 3% as a co-op. At 700k that is $21,000 that is going to be split among your agent and his broker. Repeat after me… “I don’t care about the commission my agent gets. I want to get the best deal possible…”

So not only should you lowball, you should ask your agent to split the commission with you. Even 1% of that split would be 7k for you and that would most likely cover your closing costs. Stand up for yourself because your agent will not be making the monthly payments on this home, you will.

********

Okay so after a quick look the home was previous listed for 270 days with Prudential. As you said they started at 900 and by the end of the listing they were at 799k. Now they relisted with Prudential again at 749k on 6/5/07. This home is in mapcode 1130F2. There have been NO as is ZERO sales in this mapcode in 2007. There is currently 1 home in this mapcode in escrow and that is from the new homes on Emerald Oaks Glen. The last sale recorded on the MLS was the sale on Royal Oaks on 12/15/06. That home was approximately 2500 sq ft and they had a very nice view of the valley. Now I cannot comment on the debt load these people are carrying. What I see on the Realist report is the original purchase back in 1979 for 160k. Now in 1993 there is a loan for 173k and another in late 1993 for 85k. Then in 1999 there is a loan another 165k. To be honest I would assume that one was a refi. I dont know for sure but common sense would dictate that if these people were carrying a heavier debt load they would have refinanced back in 03/04/05 at much lower rates then the 1999 or 1993 terms. So I would disagree with those who implied these people are strapped by the payments they are currently making. Yes this is a speculative statement but I am willing to stand by it.

Eccen I could go on forever with the analysis but I would recommend checking the surrounding mapcodes as well. You have read enough of Piggington to know the prevailing opinion here on whether you should buy or not. I think starting at 675k is not a bad idea. Hopefully they will counter and not totally disregard the offer. How motivated they are is questionable. The home is vacant and held in trust and I don’t see a huge sense of urgency on their part. If you are shrewd, pick a number to hold the line at and be prepared to walk if you don’t get it… then come back to them in a month or two and try again. You may get the home, you may lose it. It is a long hot summer and I don’t see them getting it sold in the near term. I understand you have an extended family so the way that it is laid our may be perfect for you. Also note that the MLS states sale is AS IS. Actually this is meaningless and should not stop you from doing all of your diligence and asking for repairs or credits for repairs if they are needed.

Again, worry about Eccen’s money and not the realtors money.

SD Realtor

[sdrealtor]

It is definitely a long hot Summer and its only starting to get hot. Try selling a house like that in Mid July when it is 105 degrees.

[sdrealtor]

It is definitely a long hot Summer and its only starting to get hot. Try selling a house like that in Mid July when it is 105 degrees.

[what_a_disasta]

Also, don’t forget that buying as a collective has its own problems. People you love dearly have a way of getting on your nerves when you are forced into close proximity for extended periods. I imagine that problem will be compounded more by a remote location.

You should all agree on an exit plan just in case you cannot stand it after a few years. i.e. What will you do if one co-owner wants out, but the rest dont want to sell? If its all agreed beforehand you will avoid some big problems and ill feelings later on.

[what_a_disasta]

Also, don’t forget that buying as a collective has its own problems. People you love dearly have a way of getting on your nerves when you are forced into close proximity for extended periods. I imagine that problem will be compounded more by a remote location.

You should all agree on an exit plan just in case you cannot stand it after a few years. i.e. What will you do if one co-owner wants out, but the rest dont want to sell? If its all agreed beforehand you will avoid some big problems and ill feelings later on.

[jennyo]

You might as well offer them whatever you feel is appropriate–don’t be concerned about your agent’s income. My husband is currently trying to sell two houses and a fourplex as an executor of a relative’s estate, and in this market, he is seriously considering every lowball offer that comes in if the other terms are favorable (cash/high down payment/willing to have a longer escrow due to legal notification/as-is sales). His real estate agents are not thrilled about this, but they knew the deal when they signed up for the listings. If the house in Escondido is vacant and held in trust, it might be the same type of situation. Also, Mountain View is (at least used to be) a pretty nice street. You could do alot worse in Escondido.

[jennyo]

You might as well offer them whatever you feel is appropriate–don’t be concerned about your agent’s income. My husband is currently trying to sell two houses and a fourplex as an executor of a relative’s estate, and in this market, he is seriously considering every lowball offer that comes in if the other terms are favorable (cash/high down payment/willing to have a longer escrow due to legal notification/as-is sales). His real estate agents are not thrilled about this, but they knew the deal when they signed up for the listings. If the house in Escondido is vacant and held in trust, it might be the same type of situation. Also, Mountain View is (at least used to be) a pretty nice street. You could do alot worse in Escondido.

[sdcellar]

Near as I can tell from looking at the property is that it looks to be one and a half houses. That’s half of what it sounds like you have now. I’ll grant you the large lot, but unless somebody’s idea of the high life is living in a tent, I’m not sure how this place is going to work for what sounds like three families. That would be my biggest concern if I were you.

Granted you’ve seen it and I haven’t, so I may be missing something, but I’d also consider what_a_disasta’s comment on buying as a collective. And not to mention that $425K nets you $1,750 a month before taxes pretty easily.

And yeah, finally, take the advice of the others who’ve posted and don’t worry one bit about getting a sale for your agent. He works for you and the purchase has to make sense to you (and your group) both financially and with regard to quality of life. You’ll be living with your decision for a long time.

[Author]

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