Question about making an offer on a home

[Leelo]

Hello everyone - I have been reading this forum for a few days now, and think I can find the help I need here :-)


I am interested in buying a house. It is listed at $219,900, and is on 1.05 acres of land. (2 bed, 1 bath. 5 rooms total)
The problem is the house itself (the land is beautiful)

The things wrong with the house are:
Small crack in foundation.
Part of the house foundation is covered by soil (termite threat)
Cracked paint throughout
Needs new roof
Bathroom AND kitchen need to be redone
Basement has sump pump
Windows need replacing
Etc.

The seller is in a nursing home now, and when I called the realitor, she told me about most of these things straight away (the rest I learned on my own)

Because of the land, I want to make an offer, but don't want to go too low and lose it.
Considering everything, how low should I start?
I was thinking $150,000?

Also the sign in front of the house says "reduced", and there is a "for rent" sign there as well. Does this mean the seller is very motivated?
(I am in love with this land)

Thank you for any help you can give me!

[satxproperty]

There are too many variables and unknowns here... in some areas, the house might be a tear down, because the land is worth the price alone. In other areas, you might be wise to move on to the next property.

Don't call the agent whose name is on the sign out front, they represent and are loyal to the seller.

My advice is to find a local real estate agent and work exclusively with them, they will represent you, they will know the area.

[Dallas Broker]

Like Randy said, find a good buyer's agent, have them do research for you on surrounding property value and sold comps and then submit your offer accordingly.

Also, don't assume by going directly to listing agent on the sign in front of the house you are saving money by not using representation from a buyer agent.

For Example, in this example scenario, If the owner of a property is paying 20% commission to listing agency for selling their home and listing agency is offering 10% to any buyer agent who brings a ready, willing, and able buyer

Scenario 1: you work directly with listing agent and elect not to have a buyer agent represent you -listing agent receives full 20% commission and represents both buyer/seller as intermediary

Scenario 2: you take advantage of buyer agent services and have buyer agent negotiate for you and represent your best interest - buyer agent receives 10% commission of 20% commission owner is paying listing agency

Of course, this is all hypothetical and may vary from state to state as commissions do, there are no standard or normal commission structures. As a owner you may pay 0% to sell your home or 50% depending on the agreement with your broker.

[SLP-NYCT]

WHOW THERE DALLAS! PLEASE EDIT THIS ASAP! We do not need DOJ coming down on us! ANY talk of commission is a HUGE NO NO!

All Commission is negotiable so there is no way for you to know what is normal. There is NO NORMAL.

Thank's Dallas! MUCH BETTER LOL

[Dallas Broker]

WHOW THERE DALLAS! PLEASE EDIT THIS ASAP! We do not need DOJ coming down on us! ANY talk of commission is a HUGE NO NO!

All Commission is negotiable so there is no way for you to know what is normal. There is NO NORMAL.

better?, didn't want my message to be miscontrued, commissions can be spoken of as long as message is clear and intentions are to educate without imposing certain standards or norms

[SLP-NYCT]

We now Return you the the Discussion already in progress.

[Dallas Broker]

very funny! Larry, off topic, but how is biz in NY?

[thataway61]

Pay for an home inspection. Some of the issues may not be as bad as you think and there may be some issues that you are not even aware of. You could make an offer contingent on your approval of the inspection and if the home is not being sold "as is" you would request that seller cure any defects found in he inspection. As`previously suggested, you may want to have a buyers agent represent you and assist you in doing your discovery and due diligence.

[TheRealOBX]

Leelo


The best advice is to try and detach yourself from your love of the land and look at the home purchase as an investment even if it is your home. Since it is a large purchase, as homes are especially primary residences, being detached from the buy would assist you in determining what value the home truly has.

Definitely finding someone knowledgable in your area to represent you would go a long way.

[SELLITNOW]

You have to know, at the very least, the following:
--comps for the area within last 6 months (preferably) to a year
--inspections results (how serious is the foundation crack, termite threat, etc.)
--appraisal value (the loan company will not endorse a "bad" deal)

A buyer's agent is well worth the knowledge and guidance you get!