Chihuahua People Forum banner

1 - 20 of 28 Posts

·
Registered
Joined
·
41 Posts
Discussion Starter #1
We are looking at a new home...there are not a lot of choices in the area in our price range...but the one we are looking at is decently maintained. The selller wants 78000 but I pulled the card and he bought it in 1998 for 49500. He replaced the roof, which i consider to be maintaining a houses value not increasing it. Re-did the kitchen, his own craftsmanship i think(decent but not perfect) Garage is insulated now, no dedicated heat unattached.
1500 sq feet--basement is old and a bit of water seepage in heavy rains but they have carpet in one area of the basement and it is finished. (you can tell the block is old--about 50's im guessing if not even older)
1 full bath and stool in basement built in 1923 lot size 55 x100 hot water heat, no central air.. taxes 950 a month inc luded is water softner window treatments dishwasher washer dryer(old) 2001 new roof 2000 new garage door, 1999 new windows downstaris 3 new dorrs wireed teh garage... some new wirenand plubig in the kitched.. 03 patio and prvacy fence (this is very very small back yard area... ) Hardwood floors in good condition. oak trim.

The attic has blown insullation but the rafters are bare and I think that is where a lot of the energy inefficency for heat comes into play (130 a month even pay--when other houses of similar size are lower thn or about 100 a month) I would have to insulate more in attic. This house is in iowa.

Remeber he paid 49500 in 1998--- I figure that in total maybe put 10grand into it in improvemnets and other would be maintainace..
The seller has had the house on the market for quite some time--christmas tree is visible in the realtors photos. Also the lady that showed me the home said that there was a alot of items moved out so looked like they are moving items out.

I think I should offer 60000 and see waht the seller says.
 

·
Registered
Joined
·
525 Posts
I am getting ready to sell my house and if you offered me that much I would never accept. If you take a 5% increase in value in the last 8 years (which is what our market is here) than equity alone brings the value to $70,000. Plus you have to put into consideration all the updates that he has made. I would probably offer between $72,000-$75,000.
 

·
Registered
Joined
·
3,249 Posts
i would offer 72,000 and be willing to go up to 75,000 wihtout question
yes he bought the house for around 50,000, you said hes put about 10,000 in so thats your old value to 60, then theres your inflation and the rise in property value over the past few years, if he bought the house for 50,000 last year then fine, but with the past few years housing increase id say 75-80K is about right. since its been on the market for some time now he might be willing to drop back to the 72,000 but i very much doubt hed go any lower than that.

consider yourself lucky, where i am the average home value in our town has gone from $350,000 3 years ago to $550,000 today.
 

·
Registered
Joined
·
216 Posts
Sounds like he's put a lot of work into the place.
Home sales have risen dramatically since 1998.
I bought a 3 bdrm home in NY state in 1998 for $76,000.
Sold it in 2001 for $98,000. They are now going into the $300,000 for the same houses in the area.
I would jump on it!!!

I bought my house in Cathedral City for $255,000 in 2004. It is now worth $400,000! Crazy huh?
 

·
Premium Member
Joined
·
6,744 Posts
im sure prices have gone up alot in 8 years!! lol i dont think you can expect to make an offer based on what he bought the property for- id probably offer 5k under the asking price although priced at 78k he prob wants 75 which sounds great for a house near me a one bed flat is atleast £175k

my mums house has gone from £250,000 which she bought in 1998 to £450,000 now
 

·
Registered
Joined
·
41 Posts
Discussion Starter #7
But one thing to consider is where I live.... It is not a metropolitan area (the town is about 5500 people and there is no real expansion planned. So property values are inflated, in my opinion, artificially. It is not a suburb of a large town. the nearest is 20miles and maybe has 3-4 times the population (cause its a college town) I can make a low offer and see what they say. Im really going to consider a lower amount. The worst that they can do is say no...

It is a buyer's market though and I feel that they are asking too much...especially for this area. Rural iowa is just not a big boom town. Where I am living I commute 35 miles to work and the 4 bedroom giant home next to me selling for 40grand... the rental property (we rent in--pure dump) would pry sell for a tad above what the land is worth. maybe 15k...

I think i will talk to the realitor a bit more to find out the sellers motives and see what I can do for offers and what other homes are in the area. I might pull some cards on other homes that were listed several months prior to see what they sold for.
 

·
Registered
Joined
·
4,280 Posts
foxywench said:
consider yourself lucky, where i am the average home value in our town has gone from $350,000 3 years ago to $550,000 today.
Wow, in my area for $550,000 you could get a VERY nice VERY big house...like 5 bedrooms, etc.
 

·
Registered
Joined
·
706 Posts
real estate property usually increases in value...regardless of any improvements as long as maintained. with that being said i just sold my old house that i paid $27,000 for in 1994 for $76,000 and closed on Friday. the house was purchased under value and we sold it for less than it appraised for but only because my sister bought it. the house i am living in and just bought last march has increased by $40,000 in just a few months due to about $4000 in improvements. it was just appraised again after the improvements. it sure helps to have a good friend in real estate to find the diamond in the rough :)
you can lowball the seller but dont be surprised if he doesn't counter offer and will not look at another offer from you again.
edited to add i read where you are from iowa. i am from south dakota and it will not change the fact that property values increase. when the listing agent listed this house he did a fair market value and compared to houses on the market in that area.
good luck to you
 

·
Registered
Joined
·
3,249 Posts
katie18: yeah crazy huh?! but thats ct for you...
550,000 will get you a 2-3 bedroom house with 1-2 full baths on about 1/4 an acre right now. with between 1500 sqft and 2000sqft.
a 1 bedroom "nothing special" apartment goes for between $1000 and $1500 a month. a studio or efficinency apartment usually goes for aroudn $850-$1000 a month...more if you want pets, the cheapest pet frinedly ive found so far is $1300 a month for 500sqft studio apt.
this is why im so happy my parents have the space to expand, theyve turned the old garage into a small studio apartment and ill be paying $500 a month instead of the $1300 a month for a pet friendly studio apartment, i cant move out of town because were opening a store in town and i need to be neerby, but theres no apartments in my price range right now.
 

·
Registered
Joined
·
41 Posts
Discussion Starter #11
The house we are looking at appraises at 62840... and most homes in the area sell AT or slightly below appraised value... (a few sell above--good homes that are not appriased high or a good realator and desperate buyer)... I think if I start at 65000 we might close on 70k... but not telling anyone involved that.... I need to do another look through on the home. Thanks for the feedback.. it helps me think in new directions. Even if i think your comments are crazy or way off the mark...*(which they may not be for your realestate market) they help me get my opinions more grounded and take off the rose colored lenses.
 

·
Banned
Joined
·
6,248 Posts
Katie 18 said:
Wow, in my area for $550,000 you could get a VERY nice VERY big house...like 5 bedrooms, etc.
Here too Katie... In fact only the wealthy own homes in that price range in my area. 550K gets one all kinds of extras here... usually is set up in some way for house help. Doctors and Lawyers etc. etc.
 

·
Registered
Joined
·
1,592 Posts
Same here. A starter home is going for around $250,000 to $300,000. $500,000 would get you a pretty nice spread but the doctors and lawyers are going for the bigger houses. $500,000 is basically just a little above average. They say that the average house price now is over $400,000.
 

·
Registered
Joined
·
706 Posts
fedge said:
The house we are looking at appraises at 62840... and most homes in the area sell AT or slightly below appraised value... (a few sell above--good homes that are not appriased high or a good realator and desperate buyer)... I think if I start at 65000 we might close on 70k... but not telling anyone involved that.... I need to do another look through on the home. Thanks for the feedback.. it helps me think in new directions. Even if i think your comments are crazy or way off the mark...*(which they may not be for your realestate market) they help me get my opinions more grounded and take off the rose colored lenses.
who appraised the house? your realtor? an appraiser? if the house only appraised at $62800 no bank is going to loan more than the house is worth and not even full appraisal if there is not a down payment. the house would not be worth the credit risk.
 

·
Registered
Joined
·
706 Posts
Your lender will require an appraisal when you ask to use a home or other real estate as security for a loan, because it wants to make sure that the property will sell for at least the amount of money it is lending.

Don't confuse a comparative market analysis, or CMA, with an appraisal. Real estate agents use CMAs to help home sellers determine a realistic asking price. Experienced agents often come very close to an appraisal price with their CMAS, but an appraiser's report is much more detailed--and is the only valuation report a bank will consider when deciding whether or not to lend the money.

This from my realtor friend in an email when i questioned her.
darla
 

·
Registered
Joined
·
1,375 Posts
I think it's a tricky time to buy a house. The housing market is tanking right now so the price should drop, however, interest rates are looking to be on the rise by March.

We bought our home for 36k three years ago and it was appraised by a bank appraiser for 110k now. We have dramatically changed it though, it went from being the second worst house on the block to the best. People drive by and stare :)
 

·
Registered
Joined
·
41 Posts
Discussion Starter #18
This is the best time for us to buy if we don't now we pry won't for long time or end up in a dump (money pit)...
 

·
Registered
Joined
·
1,218 Posts
First of all, wow, I thought Texas was cheap. But was that $950 a MONTH for taxes? Or a year? My daughter is thinking of moving to Iowa...she did tell me housing was very affordable there. I told her she would be cold! :)

Anyway, I support you going in lower only because it's been on the market so long. It doesn't sound like you are "in love" with it (which you never should be when buying real estate). You really don't have anything to lose. Here where I live, it's more about location than about new roofs or insulation anyway...and it sounds like location-wise, you would know more about the right price than any of us do. I do think you are doing the right thing to buy now, because prices are lower and also...20 miles from a big town is considered very desirable!

Good luck. People pay so darn much to live in most of the US. Texas is still affordable, but to me, it has high property taxes. It's always something!
 

·
Registered
Joined
·
1,375 Posts
Dolly's Gma, Iowa is starting to creep up in price but it's still nowhere near what prices are in other places. We also bought the little cottage next door for 18k. Less expensive than most new cars.
 
1 - 20 of 28 Posts
Top