Wednesday, February 1, 2012

Update on the House

My mother comments on a Facebook post of mine where I posted a photo from Muscle Mustangs and Fast Fords showing a 2013 Cobra Jet (Mustangs are my favorite cars). My mom says 'call me' and with the issues with my dog, I call her immediately. She said my dad's aunt called the night before to talk about the house.

So apparently, she wants 320k for the house. Now, I wasn't in on the phone call, so I don't know all the facts, and since my aunt called late, I don't think my mom got a chance to really speak with her about it. Now, as I stated in the first post, this house is really run down. It's very old, the outside is old looking as well. Nothing was ever done inside to 'keep up' and modernize it. All the original appliances, etc are still there. 320k is VERY high for that house. It's a 2 bed, 1 bath ranch. My condo is a 2 bed, 2 bath condo, and it just got appraised around 200k, and that's with everything brand new and everything in tip top shape. So I don't know if she's totally out for money, or just doesn't know the market since she is in her 70s, or if maybe way back when they had it appraised back in the 90s maybe that's what it appraised for? I don't really now.

So, my mom suggested getting an appraisal, as did my best friend. He's the one that's going to be doing a lot of the work in the house if we get it, so he knows that end of it, but I'm more the negotiator and getting things done on paper person. So I emailed the guy that did our appraisal a few weeks back and he emailed me back this morning with the price, etc. My friend said after or even now, to get the software that you build your own house, so we can get his contractor contacts out to price us on what it will cost to build up the house (2nd level since my friend and husband can pretty much do the downstairs work). That way, we can go back with an offer with the paperwork in hand. We were looking to buy it for 100k TOPS. I know a similar house sold for about 120k down the street, but since we're family, you would think they would give us a deal or something. But 100k is pretty much our top offer at this point. It's what I think we can afford, and still afford our condo now that's underwater. Then down the pike, we can either sell or rent out the condo. I don't want to walk away since our credit is so good, I don't want to tarnish it, but that's a ways down the pike.

I don't know what to think of this all. My mind is a blur. She's family, and my father has done so much to help them with this house. Upkeep the outside, fixing things inside, chasing someone that tried to rob the house (another family issue, they were looking for 'hidden' money, that wasn't there), etc. And now, a price of that caliber when a nicer house (not by much, but a little bigger) sold for 120k? I just don't get it. I'm not sure how to take it, like is it a slap in the face b/c they just want money or they just don't realize that that house will NEVER sell for that amount? They pay the taxes on it, they pay the utilities, etc so it's money wasted each month that goes by. I don't know. The appraisal will cost $385, so that's not just a couple of bucks. My best friend said if I really want the house to do it that way it's on paper, then start the negotiating. I'm just unsure what to think at this point.


Precious said...

Get the appraisal and then negotiate with your aunt. If she isn't willing to negoitiate, RUN don't walk.

Mary said...

Funny, my answer is the same as Precious, before I even clicked to the comments page.


The lady is older - she's not ancient but probably doesn't use Zillow or know how to do a comparison. Anything coming from someone YOU hire is going to be seen as skewed your way.

Want to start bad blood in the family that will stick around for decades? You have the right attitude. Just keep on the path you are on. Haven't you ever heard the saying, "don't buy from a relative"? Cars, houses, you name it - you are going to end up on the losing side. People will think you gave her the shaft, poor old lady.

Trust me - there are plenty of houses out there that could be worth $300k with the addition of a story, but are only $100k with rehab needed. Find one of those. Keep looking. Turn away.

When she's sitting there in a year in a house that's way overpriced, you can say "told you so" and feel ok with it, and you won't come out the "bad guys" in the whole deal.

spaghetti0625 said...

We don't have the appraisal back yet, but I can tell by the way he was talking that it's not worth anywhere near what she wants. I can get 3 of the houses like hers for the amount she wanted. There can't even be a Certificate of Occupancy for it b/c of the electrical's way too old and a hazard or whatever, so there's the first issue he found, and that was the first area he went to. There were other issues with it as well.

Bottom line is we know how much we are willing to buy for. That's it...if she doesn't want to negotiate, then we walk. I'm not going up in my bottom line. But I do want the house for sentimental reasons. My uncle made that house, and my grandfather did all the electrical work (well over 50 years ago). Nobody will buy that house as she doesn't have it on the market, but I know it's just sitting there empty. But if she's not willing to come down to the highest price we will pay, then it's a no go. We will keep plugging away and saving for a downpayment on a bigger house (like a K.Hov house, where we build it to our specs, etc). We are in no rush to move out of this condo (although I'd love nothing more then to get out of dodge) but since the market tanked, we are underwater in it.

It's just a thought that I've always wanted the house and now that I'm back to working full time, I figured I'd try.....but we know to walk if she won't budge. Then it's on her to keep paying all the bills, the taxes, etc. My dad can't really take care of the upkeep (fixing minor things, lawnmowing, etc as he has his own health issues). And it will cost them $ to fix up some things to sell it to get the C.O for the buyer and to get all the stuff out of the house....all of which we would help with. We would need a dumpster and she can come and tag what she wants to keep and my husband can bring it to their house..that's not an issue for us, but for them, if they sold, they'd have to hire movers to get the stuff out, get a dumpster to throw the rest away, etc.

so it's all a waiting game at this point.