[R7d61]

Originally Posted by Rapunzll

I llooked up the cabin on realtor.com and it doesn't look too bad. I've certainly seen a lot worse up here!

think it's worth the 47k? or do you think I could get away with 38K? and I know what you mean about the shoddy cabins lol I have seen plenty in my searchings lol

[Torrid]

Hey, I just checked it out on the AuSable Valley website. It has 15 acres, give or take. The cabin is cozy looking but, definitely small. If each acre sold for 2K, that'd be 30K in land. The cabin is certainly not worth another 17,500 (it has no potty!!! lol, no running water and no garage). Honestly, after actually seeing it, I wouldn't offer much more than 38K for it either. I am not familiar with where Curran is but, the cabins I've seen (comparable to this one) in the U.P. are going for 10-20K less than what they are asking for this one.

[R7d61]

Yeah it's armed only with a hand pump and a "path to bath" LMAO

I wonder if it's the old school tub where you gotta put a fire under it to warm the water and put wood planks in it so you don't burn your bottom haha

[Torrid]

LMAO!!!!!!!!! Well, if you're looking for primitive, you've definitely found it Just remember, don't throw the baby out with the bath water LOL! If the cabin was twice as big and had a potty,...and, in the U.P...... it'd be exactly what we are looking for. Have you contacted the realtor about it yet? If it has been on the market at 47.5K for a while, I can see why. Unless it was waterfront, I don't ever see it selling for that price.

Originally Posted by R7d61

Yeah it's armed only with a hand pump and a "path to bath" LMAO

I wonder if it's the old school tub where you gotta put a fire under it to warm the water and put wood planks in it so you don't burn your bottom haha

[R7d61]

I asked for additional pics/info, but she didn't really have much additional info and no extra pics.

I didn't want to start sounding like I was ready to buy it just yet, but just a bit interested.

I'm going to contact her again this weekend after I look at a few more properties and compare them.

[Torrid]

I wouldn't beat around the bush. I'd get to the point and ask the all important question...."Are the sellers firm on the price?".....The answer would help you decide if it's worth pursuing or not. Good luck!!

Originally Posted by R7d61

I asked for additional pics/info, but she didn't really have much additional info and no extra pics.

I didn't want to start sounding like I was ready to buy it just yet, but just a bit interested.

I'm going to contact her again this weekend after I look at a few more properties and compare them.

[trunkslammer]

I would look some where else to buy, but not in curran, those people think they are the big city.

[trunkslammer]

realator and people who live in curran are use to the bears and other wild life, they are not afraid to go anywhere, you should not assume, besides the residents can be worse than the animals. dont get involved in the politics it gives back stabbing a new name. But check out the Bar and resturant there they are not half bad, really friendly people.

[Coldjensens]

With a 30 year loan, you get a lot more flexibility. Make sure you have no pre-payment penalty on the loan. Then you can alwyas pay it off early if you choose. I am pretty sure that if you double the payments, you will pay it off in less than 15 years. However if you get into any kind of financial trouble, you can go back to the 30 year payments in improve your cash flow instantly. If you have a month when you need extra cash for something, you can pay hte minimum that month and make it up later (or don't). It could be a critical benefit to you.

A 30 year morgage will have a higher interest rate than a 15 year morgage. That is because their money is tied up longer and the money is at risk longer. However it is usually not a huge difference. If you do manage to pay it off in 15 years, the total amoutn of interest will not be much different than if you had gotten a 15 year loan. The flexibility is well worth it.


Keep in mind that you cna write off your morgage interest from your taxes. Depending on your tax rate, a 4.5% interest rate may really amount to something like 3% or even less. This will further decrease the net difference in interst rates between a 15 year loan and a 30 year loan. Although you will pay slightly more on the 30 year loan, you will have a slightly larger write off. (Lets say that a 30 year loan costs you an extra $100 per year over a 15 year loan. However you are writing off that extra $100, so at a 25% tax rate, you are paying $75 extra, not $100 extra for the flexibility of a 30 year loan).

Unless the difference in interst rates between 15 ad 30 years is huge, I would pay the difference for the flexibility and added security. If your payment on a 15 year loan would be $750 per month, but on a 30 year loan $500 per month you can always pay $750 per month, but if you lose your job or something, you could work at McDonalds and cover $500 per month. If you end up on disabilty with 60% of your income, it may keep you out of forclosure if you can reduce your monthly payment by 40% as well.

Back to your original question what to offer depends on who is selling the house, how much oyu want that particular house, and many other factors.

If it is a private homeowner sale, they probably have a morgage. They are not likely to accept an offer less than the amount of their morgage or an offer that leaves them no downpayment for a replacement house.

If it is a builder, they have specific price points at which they will not sell the house. Usually it is not more than 10% below the asking price. However it they have had the house on the market for years, they may have written it off as a loss, and they might take a lowball figure.

If it is owned by a bank, they may have a minimum figure that they can take for the house. Below that number and they are better off keeping it to show it as an asset on their balance sheet. Many banks offer foreclosed houses at close to their bottom line. They want to move the house as fast as possible. However if the bank did nto foreclose and buy the house withthe debt, then they have to sell it for a fair market price or the former owner may claim they gave it away and sue them for its value.

An individual seller may get ticked off at a lowball offer and refuse to sell you the house for any price. I have seen it happen. A company or a bank will not care about a lowbally offer. They will just say "No"


IN my experience what a sller deems a big discount and what a buyer sees as a big discount are always very different. Even on an expensive house a seller sees a price drop of $2500 as signifcant. A buyer sees a price drop of $5,000 as inconsequential. At the lower end, the numbrs get smaller. thus your seller may be reluctant to come down $3000 on the price. An offer $10,000 below asking price may be offensive or at least send the message that you are just playing around. A business seller will reject such an offer. If you then go up substnatially, they will perceive they can get you up quite a bit more. They may stand their ground knowing that you will eventually come back with a higher price, and if you do not, they can sell it to the next guy. Lowballing can sometimes result in a higher sales price. It can sometimes result in a tremendous bargain.

It is a bit of a gamble. Do you want to gamble?

[bongo]

This thread is from over 5 years ago!