Help me please!

joshua · Joined: 25 Jul 2006 Posts: 13

Hello!

I found a condominium in Orange County which came on the market just 2 weeks ago for $775,000.00

Then on mlslistings.com website I found that the price of this condo was reduced to $740,000.00

I asked them why they reduced price of $35,000.00 after the property was on the market for only 2 weeks. They told me, and I saw the documents, that the current owner bought this property last year in October of 2005 and he just lost his job, and he is 59 years old. Based on the paperwork he bought this property for $750,000.00 with 20% down payment. I made an offer of $725,000.00 and “verbally” they told me that he is ok with my offer because he needs to get out of this property as soon as possible because he has no money to pay, his property taxes are also due soon. They told me that the bank which loan him the money to buy this property need no review my offer before we go any farther. What do you think about this situation? What should I do? Is this is a good buy or I better wait for better times? Please give me your professional advice.

Best Regards,

Joshua.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Joshua,

Nobody on this message board could accurately state that the property you are looking at is a good buy.

If this is a place you want to buy, and it seems like a good price, then jump on it. If you are more concerned about the value of the property itself, do some research. Find out more about the home, and start finding out what similar houses have been doing on the market. Find out how long those types of houses have been sitting, because that could mean a problem for your value...maybe.

My concern would be if he bought it for $750,000 last year, and he dropped it down to $740,000, why has it not sold already?

joshua · Joined: 25 Jul 2006 Posts: 13

Haplo wrote:
My concern would be if he bought it for $750,000 last year, and he dropped it down to $740,000, why has it not sold already?

Actually the units in that community are selling very fast, there are similar property just remodeled just came on the market couple days ago for $779,000.00 same size.
They told me the reason is that the current owner is not a young guy and he is very stressed because he just lost his job. First they list the property for $775,000.00 because the seller want it to get at list his down payment back, but when they find out that there is another property is coming on the market right now they reduced the price to $740,000.00. I saw that the price was reduced before they made changes on the fliers. I apologize for my English.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Ah gotcha.

Sounds reasonable to me. Make sure the property is in decent shape, and it sounds like the price is pretty good.

joshua · Joined: 25 Jul 2006 Posts: 13

Haplo wrote: Ah gotcha.

Sounds reasonable to me. Make sure the property is in decent shape, and it sounds like the price is pretty good.

Thank you Sir, I will have a home inspection. Thank you again.

chow · Posted: Sat Oct 07, 2006 9:29 am Post subject:

I bought a ton of loans from banks down in FL a few years back. I couldn't believe what condos went for! My sister's outlaws have one they bought for 55K about 10 years ago, it's well over 1MM in value now.

joshua · Joined: 25 Jul 2006 Posts: 13

chow wrote: I bought a ton of loans from banks down in FL a few years back. I couldn't believe what condos went for! My sister's outlaws have one they bought for 55K about 10 years ago, it's well over 1MM in value now.

Wow! Yoy did very well :)

This property is not exactly from the bank. I think the seller doesn’t have enough money so he is willing to lose on this property. My friend told me that this is a “short sale”. What are the advantages and disadvantages short sales? Do you think is a good idea to buy this property or I should wait?

chow · Posted: Sun Oct 08, 2006 10:36 am Post subject:

A true short sale is when the bank that holds the loan has agreed to take less than the amount owned. By the time a property goes through foreclosure, the costs just for payroll and legal fee's can eat into about 10% of the loan amount-or property value. Many banks will work out short sales if approached upfront.

joshua · Joined: 25 Jul 2006 Posts: 13

chow wrote: A true short sale is when the bank that holds the loan has agreed to take less than the amount owned. By the time a property goes through foreclosure, the costs just for payroll and legal fee's can eat into about 10% of the loan amount-or property value. Many banks will work out short sales if approached upfront.

Thank you :)

chow · Posted: Sun Oct 08, 2006 3:49 pm Post subject:

Is there a Realtor involved or are you two just working it out with the bank? They will most likely want doc's showing your proof of financing and all details of the transaction. They have to have that to know they are making a sound choice. Don't worry about giving them what they need, they are protecting themselves by working it out with both of you. They can't share that information with anyone. About the only way you lose is if they get a better offer.

I've seen some of these turn into bidding wars! :roll: (but that was when the price was really good, and the area was really hot!)

joshua · Joined: 25 Jul 2006 Posts: 13

chow wrote: Is there a Realtor involved or are you two just working it out with the bank? They will most likely want doc's showing your proof of financing and all details of the transaction. They have to have that to know they are making a sound choice. Don't worry about giving them what they need, they are protecting themselves by working it out with both of you. They can't share that information with anyone. About the only way you lose is if they get a better offer.

I've seen some of these turn into bidding wars! :roll: (but that was when the price was really good, and the area was really hot!)

We have the same Realtor represent us both, he was a sellers agent first then I made an offer directly trough the same agent. Can you tell please what are the buyer and seller fees at the end includint the realtors commisions. Can you give me this information in numbers please.

Best regards,

Joshua.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Quote: We have the same Realtor represent us both

RED ALERT

This is very often a very, very bad idea. It might be ok in your situation, IF everyone is telling the truth.

I have a list of people that tried buying through the same realtor and in ALMOST every case they never bought the house AND they lost money on it because of various realtor-related issues.

Keep in mind that their paycheck is solely based off of how high they sell the house for, and that is obviously NOT in your best interest.

As far as costs, it would be difficult for any of us here to identify specifically what the costs will be both sides. It depends on how it's listed, on what lender you use for your loan, on what the tax stamps, escrow fees, appraisal fees, etc. cost in your area. It could be as little as $2000 or as much as $15000 (assuming you paid a point) and on the sellers side, well that depends on a lot of potential items on his side as well (pre payment fees, taxes, etc.)

Without seeing the listing, and seeing your actual loan scenario, it's tough to give you a cost.

chow · Posted: Sun Oct 08, 2006 9:27 pm Post subject:

joshua wrote: chow wrote: Is there a Realtor involved or are you two just working it out with the bank? They will most likely want doc's showing your proof of financing and all details of the transaction. They have to have that to know they are making a sound choice. Don't worry about giving them what they need, they are protecting themselves by working it out with both of you. They can't share that information with anyone. About the only way you lose is if they get a better offer.

I've seen some of these turn into bidding wars! :roll: (but that was when the price was really good, and the area was really hot!)

We have the same Realtor represent us both, he was a sellers agent first then I made an offer directly trough the same agent. Can you tell please what are the buyer and seller fees at the end includint the realtors commisions. Can you give me this information in numbers please.

Best regards,

Joshua.

uh. my best friend in the whole wide world (not including my hubby, is a Real Estate Broker, and one of those highly certified appraiser persons. The kind that can do Right of Way, Commercial, "Stuff" and a boring old house with stuff!)

There is no way on God's Green Earth she would ever let me go into a transaction without my own representation. If you were just doing this between yourselves...well, okay...

I'll let you in on a very bad kept secret in my house.

We love Relitter's, BUT---- Not all of them. And- I would never let anyone have both halves of that pie. For a few dollars, you can hire an appraiser to give you a OPINION. (that's what appraiser's do) If the Realtor is doing both sides, then I would engage my own appraiser to give an OPINION. Ask for a range of value. Pay for it upfront and make sure they are not associated with the transaction, or the people in the transaction.

joshua · Joined: 25 Jul 2006 Posts: 13

They asked for the check written to the title company, I refuse to give the original check and I gave only the copy of the check. After we can get the lenders approval I am planning to have a home inspection and appraisal on my own. I won’t open an escrow until I am ok with all the terms in the contract.