how much to offer advice (Lockport, Mark: short sale, appliances, house)

[giazma]

please, my mother i could handle.....My mother in law (whom I love) wants us in her subdivision.....Great for babysitting, not so great for sanity! We both would be going nuts....

I think I am gonna offer 279 and on counter tell her my Last and final offer....I dont see this house going anywhere for a while, since according to my RE is is still overpriced....Dont getme wrong there are homes that are worth and sold for 350-360 in that sub but it is one of those subs that one home is 3600 sqft and brick with all the bells and whistles and this home is no where near that. ....I would doubt it would get appraised for more than 289....

[giazma]

I found out they owe 240, but since it is divorce and a fire sale...if i went 279 final would that be insulting, keep in mind it is all siding....and i would be putting in about 30k in upgrades....that would make my mortgage 2500 after taxes of 600 a month, think it is smarter to rent a house in the area for a year since the market sucks? Then i pay 2000 in rent for a way nicer home (found one) and dont have to worry about taxes and can pay down some other debt with that 600???

[NYrules]

Originally Posted by giazma

I found out they owe 240, but since it is divorce and a fire sale...if i went 279 final would that be insulting, keep in mind it is all siding....and i would be putting in about 30k in upgrades....that would make my mortgage 2500 after taxes of 600 a month, think it is smarter to rent a house in the area for a year since the market sucks? Then i pay 2000 in rent for a way nicer home (found one) and dont have to worry about taxes and can pay down some other debt with that 600???

Except by renting, you cant take advantage of all the write offs that could get you about $3k-$5k back next April from the IRS as part of being a homeowner. Those little write offs, bring about a big enough return for most of us, that makes owning actually cheaper than renting. Figure it this way. You rent for $2000 a mo and get no write offs so you may get back $600 in April from standardized deductions. Meaning your monthy payment is really about $ 1950 a mo.

Now take the deal where you buy the home. It is $2500 a mo, but you will get back lets say $4000 in April because of the standardized deduction and all the write offs (property taxes, closing costs, attorney fees for closing, mortgage interest, property investment (windows, energy efficent stuff)) So now take your $4000 you get from the IRS and subtract it from your monthly payment and you are left with $2,166.67 for a mo. payment. So for $216.67 more a mo, you are building equity and a future instead of building a file loaded with rent receipts.

[giazma]

very true....i didnt think of it that way...now i gotta get a new job to afford a home thats super expensive on taxes alone! i can easily afford the house its the taxes that suck!

[NYrules]

Originally Posted by giazma

very true....i didnt think of it that way...now i gotta get a new job to afford a home thats super expensive on taxes alone! i can easily afford the house its the taxes that suck!

Do you know if the person who is the current owner has filed for the homeowner's exemption? This is something many people often overlook and it can make your taxes jump a good $800 a year if you fail to re-file.

[sgresident]

you can check out Real Estate Valuations, Homes for Sale, Free Real Estate Information | Zillow Real Estate and find a value for the home and many that are in the area. you can look at an aerial map etc. If I were you, I would do this, then offer just under what it says. I really think the info is fairly accurate for each area. I have checked values in my neighborhood and tend to agree with them.

[giazma]

see in my area my house gains and loses thousands of dollars a DAY so I dont agree with Zillow at all. I do know that the area itself has home values in the 300-350 range but this is one of those subs that have "basic" houses which are sided and plain....and then the upscale 450k homes and then townhomes, so it is really hard to go by the area itself. My dad is my agent and there is no way he would encourage me to pay anywhere near asking for this home, only the ex wife lives there, it is very very basic, landscape is unkept, siding is fading, basic carpet, vinyl etc. Now i been in many homes in that sub that are worth every penny of asking but i cannot afford those. This home is good for us cause we can do what we want to it over time, but i am not paying top dollar for plain jane when 15k more gets me wowza! you know what i mean.....I know shes desperate to get out, so she may take her gain since she paid 240 in 2003 (prolly owes 210?) assuming no equity was taken out (although doubtful)
and she is still walkin with at least 50k.....Am I a b*t*h for assuming thats fair thinkin? Isnt it sell or be sold?

[NYrules]

Originally Posted by giazma

see in my area my house gains and loses thousands of dollars a DAY so I dont agree with Zillow at all. I do know that the area itself has home values in the 300-350 range but this is one of those subs that have "basic" houses which are sided and plain....and then the upscale 450k homes and then townhomes, so it is really hard to go by the area itself. My dad is my agent and there is no way he would encourage me to pay anywhere near asking for this home, only the ex wife lives there, it is very very basic, landscape is unkept, siding is fading, basic carpet, vinyl etc. Now i been in many homes in that sub that are worth every penny of asking but i cannot afford those. This home is good for us cause we can do what we want to it over time, but i am not paying top dollar for plain jane when 15k more gets me wowza! you know what i mean.....I know shes desperate to get out, so she may take her gain since she paid 240 in 2003 (prolly owes 210?) assuming no equity was taken out (although doubtful)
and she is still walkin with at least 50k.....Am I a b*t*h for assuming thats fair thinkin? Isnt it sell or be sold?

Why do you care what the seller thinks of you? It's not your problem that she overbought or over-borrowed. NOT YOUR PROBLEM!

[giazma]

good to hear, I know i shouldnt need to be sympathetic but i wont pay top dollar for something that is not in top shape.....

[NYrules]

Originally Posted by giazma

good to hear, I know i shouldnt need to be sympathetic but i wont pay top dollar for something that is not in top shape.....

If the home had gold trimed faucets, Waterford chandeliers, perfectly manacured lawn, etc. then MAYBE $300K to even $350K, but for a beat up sided home? COME ON! On top of it all... IN THIS MARKET? What crack is she smoking over there to ask over $300K in the first place? I want some.