Real estate value ??

I never agree with Ron, but he's right.

One thing I always do is look up the deed and any notes on the house. This particular house the current owner is aslmost 3 years into a 30 year $158k mortgage and the house has been on the market for ~100 days, he's being a little greedy, it's a cool ass spot but more of a 205-210k offer type spot. Right now all of his buddies have told him "its a crazy sellers market right now you can get whatever you want, sell!" but over 3 months into being on the market and not being under contract he's probably starting to realize there's a limit and banks could give a shit about the land and they are likely going to really scrutinize loaning 265k on a 1100sf house on septic/well in the county. Good luck but don't overextend yourself and end up with a house you could never sell for near buying cost.
 
braxton357 said:
I never agree with Ron, but he's right.

One thing I always do is look up the deed and any notes on the house. This particular house the current owner is aslmost 3 years into a 30 year $158k mortgage and the house has been on the market for ~100 days, he's being a little greedy, it's a cool ass spot but more of a 205-210k offer type spot. Right now all of his buddies have told him "its a crazy sellers market right now you can get whatever you want, sell!" but over 3 months into being on the market and not being under contract he's probably starting to realize there's a limit and banks could give a shit about the land and they are likely going to really scrutinize loaning 265k on a 1100sf house on septic/well in the county. Good luck but don't overextend yourself and end up with a house you could never sell for near buying cost.
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Yessir and thank you. That’s the biggest thing I’m trying to wade through is value vs. cost. Like I said I’ll pay for a property that I like but I’m not in the market to make someone feel good cause they wasted their money and think they have the golden goose just cause it’s more of a sellers market right now.
 
The other thing is they might not want to sell...but will for the right price.

You dont know their situation....

I'll say this, offers are free. They paid 158k according to Braxton... well mortgaged 158k probably means they paid 189k? Not in a place to look. Braxton can tell you how to find out.

Offer 10k over what they paid, if you like it.

If there is a situation forcing them to sell they may jump on it or they will counter woth closer to real. If they don't counter or stand pat...they don't really want to sell .
 
Ron said:
Depending on county they can be nearly identical or totally irrelevant.

I've seen tax values 10x actual market value and vice versa.
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Yep. We recently bid on a property that had a tax value about 3X the actual market value. It was a damn nice but needed some updating. House eventually sold for 1/4 of tax value, barely more than what we bid. It sat on the market for like 2 years even at 50% tax value.

No way in hell would I pay taxes on what they said it was worth.
 
You also have to look at what the bank will loan on the property. On an 1100 sq ft house, regardless of amenities, most banks will have a hard time loaning $240/sq ft. Their LTV must work out reasonably. If the house appraised at $175, any selling price above $175, you’ll have to pay out of pocket 100% since the bank won’t ever loan more than appraisal.
 
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