So I've been in like 50+ houses at this point.... Had my list of top 5/10 narrowed down and I saw a FSBO while just driving around (wasn't posted online)... thats how I missed it.
I am taking my 2nd walkthrough today with my Dad (realtor and master handyman) as well as his buddy (makes his living as an inspector and flips houses).
So the place is great to me:
2 car - two story garage (lots of storage on the second floor)
great neighborhood only .6 miles from the local University (rental potential)
New in 05' - 20x30 addition of a HUGE family/great room - gas fireplace added and new windows on 75% of house (other 25% are the windows that go into the 3-season porch)
new in 07 - appliances, roof, furnace, water heater, floors redone, house exterior painted
The place is beautiful but above my initial ballpark price range (this house is asking 145k).... but after my initial call to the owner (FSBO) he seems like he NEEEDS to sell this house.
- offered a lower price before I mentioned price at all
- has missed taxes for the last two years
- has another house and mortgage
My thoughts are the following on an offer:
Assessment = 133k
Average selling price in the last 12 months is 3% less than assessment ~130k... He also said he would NEED until January/Feburary to move out... but if we had a contract he said he would "RENT" the house from me with the time/rent being taken off of the final sale price.... I've ballparked the 4 months needed to around $4800 ($1200/mo. x 4 mo.) ... now we're at 125k
I am factoring in a dishwasher to be added, new fascia, bathroom finish on the main floor to be around 4k.... now I'm at ~120k
If I offer what I feel is fair (120k) and it is accepted, I will also be saving the 6-8% on realtor costs seeing as it is a FSBO... thats a win to me.
Seeing as this guy has been behind on taxes, is really getting hard up, what is a reasonable offer given the assessment, his situation, and items I feel "de-value" the assessment?
Even at 120k it is bar far the best "bang for the buck" I've seen and 100% move in ready which is nice.
House pictured below:
Old Living room to Dining room
New family room addition
Family addition to the old living: