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Old 12-23-2009, 01:55 PM
 
Location: Hoosierville
17,205 posts, read 14,492,063 times
Reputation: 11462

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Quote:
Originally Posted by amerifree View Post
Hit the Nail on the Head! Why pay to make all of the sellers dreams come true?

I walked away yesterday on principal from a seller who didn't want to pay 2k toward closing cost....on a 497k OFFER!!!!!

Realistic, motivated sellers are very, very rare. Most are just hoping to hit the lottery, and believe it or not, there's plenty of stupid buyers 'negociating' 2-3% below asking price. GMAFB!!!

Buyers Agents need to start representing their clients, instead of continuing to commit fraud by saying things like; "motivated seller, great time to buy, prices are bottoming, etc".

The only thing I see 'bottoming' are buyers who put faith in the same snake-oil, used-house salesmen that helped perpetuate this mess.
It kinda sounds like you're the one hoping to hit the lottery by finding a desperate seller who will sell to you below market value.

Because if the comparables are selling at 2-3% below list price THAT'S the market.

Or did I just misunderstand you?
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Old 12-23-2009, 05:07 PM
 
Location: DFW
40,937 posts, read 49,032,812 times
Reputation: 54963
Quote:
Originally Posted by amerifree View Post
The only thing I see 'bottoming' are buyers who put faith in the same snake-oil, used-house salesmen that helped perpetuate this mess.
Pretty broad statement for the whole US. I just returned from Dublin CA near San Fransisco where our son lives. Homes there had dropped about 30-40% but since this summer is back up 5-10% with many homes getting multiple offers.

Sounds to me as of today their market has bottomed.
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Old 12-24-2009, 09:38 AM
 
Location: SC
9,101 posts, read 16,425,189 times
Reputation: 3620
Quote:
Originally Posted by middle-aged mom View Post
It ranks right up there with " this one won't last" on a year old listing.
LOL! Right you are! (There are a lot of those too.)
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Old 12-25-2009, 08:09 AM
 
Location: Cranford NJ
1,049 posts, read 4,013,667 times
Reputation: 405
seller motivated = price negotiable.
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Old 12-25-2009, 10:35 AM
 
Location: North Pittsburgh
353 posts, read 1,726,088 times
Reputation: 156
If someone took the time to contact a Realtor and place his home on the market, then I would assume he is a motivated seller. To me the term is redundant.
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Old 12-28-2009, 09:01 PM
 
14 posts, read 117,560 times
Reputation: 26
Hi,


I want to thank everyone for all of your responses, advice and suggestions. The day I went to view the house I took some pictures and wanted to share them so you could see the condition of the house.

Curb-side view

Just tree gunk on the newly painted roof I do like the porte-cochère with the front porch.

Back of the house

As you can see, the seller did not paint the back of the tin roof and it shows the rust, and just painting over it is not the way to fix a tin roof when it's rusted.


Side view.

The edging of the roof and the windows need major restoration.

Entrance in the back of the house.

Too many exposed cables around in this house.

Side windows

More exposed cables, plus cheap carpet indoors hiding the hardwood floors in unknown condition.

Foundation

More cables, and the masonry work does not look well done.

More foundation.

The neighbor mentioned that there were rats in the house. I wonder how they got in? They also mentioned that they had to recently put lyme around their property because roaches would come from the direction of this house.


As you can see the house needs restoration after years of neglect and through the window I could see some shoddy “repairs” done to the house to justify the listing price. I ran comparables and the houses nearby and in similar scope and in livable condition run in the $100,000 to $150,000’s.


I learned after research that at the peak of the market in 2007 on the same street there were two similar but larger bungalows sold in the $300,000’s, but they were authentically restored with no corners cut. I think the seller wants to sell between what he or she bought it for, and what the fully authentically restored bungalows sold for, but is not willing to put in any real effort to make the property worth the listing price. The basement will also need insulation and I can tell a lot of things will need to be fixed, like stripping the sheet rock and fixing the plaster that has been covered.


Upon further research, I found that the house has been on the market for well over a year now without lowering the price. Even in this economic downturn if a house is priced right, there would be someone to snap that house up as it is a fine example of an Arts & Crafts Bungalow. I would like to fix this house back to its former glory and fill it with Stickley furnitureas it makes the most appropriate furniture for a house of this time period, but I do not want to get ripped-off by over-paying for this house.


Everyone's comments have been really great and I enjoyed reading everyone's perspective and it has helped me and I would like more comments after you've seen these pictures.

Have a happy New Year in advance.

-Altstadt
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Old 12-29-2009, 04:58 PM
 
Location: SC
9,101 posts, read 16,425,189 times
Reputation: 3620
Altstadt,

If you WANT it and are WILLING to fix it up, go for it but I'd really low ball the offer. It is a cute house (or could be once you are done toiling over it). Also don't get it thinking that once you finish you'll be able to make a profilt and flip it. Homes are still losing value everywhere (just not as fast). Figure it is going to lose 1 percent per month for the next few years (thanks to all these dumb homebuyer incentives that artifically prop up the market). On the other hand, if you are going to live there, figure would a market rent would be and then if you had to sell it at a loss, it might not be a total loss if after everything, you were able to live there for less than you would have paid in rent.

Let's say you buy it for $60k and put $100k into it. You try to sell it for $250k but you only get an offer for $150k. if the going rent in your area would be $1000/mo and you lived there for 2 years, that's an expense of 24k. Even though you sell the house for less than your total investment, you are still $14k ahead (or maybe 12K ahead after taxes) than if you'd just rented.

Last edited by emilybh; 12-29-2009 at 05:09 PM..
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Old 12-29-2009, 11:19 PM
 
14 posts, read 117,560 times
Reputation: 26
Emilybh,

I am not trying to buy this property with the intention to flip it; on the contrary I would like to live there for the long term. I have been brought up to be financially prudent with my money and not to succumb to the hype. After all of the work that the property would need to make it livable after years of neglect and also undoing the shoddy repairs in addition to the restoration work I am trying to find a buyer’s agent without much success. When I see people trying to use the cache of a nearby hipster neighborhood and artificially inflate the price of the property it is questionable.

However, perhaps I am drawn to this house because I am fond of this architectural style and whenever similar houses go on the market they go for a higher listing price but often have been completely renovated inside where all the original charm is gone and in its place one finds sterile check-lists of “McMansion” features that do not appeal to me. I prefer a fixer-upper but just one that is priced as a fixer-upper, not one that is represented as a house that needs “light” upgrading and in a gentrified or tony neighborhood.
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Old 12-30-2009, 07:36 AM
 
Location: DFW
40,937 posts, read 49,032,812 times
Reputation: 54963
Sounds like the marketing on the house using the term "Seller Motivated" worked. It got your attention and caused you to go look at the house. It peaked your interest.

If they had just used normal description on this house you would have probably moved on to another home.
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Old 12-30-2009, 06:35 PM
 
Location: Charlotte, NC
2,193 posts, read 5,043,874 times
Reputation: 1075
THe house looks like it needs a lot more than a little 'tlc.'
Don't overpay for the property.
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