Is this a good deal? How should I approach this.

[JuanaH 0]

Help!

 

There is a one family home 4-5 blocks from where I live. I have scheduled an appointment to see it in 3 days. The house was just built more than 8 months ago, has a FSBO sign on it and it's still vacant. I called the number and the price is $439,000.

 

I offered him $3,000 as an incentive for a lease purchase option for 2-3 years. I asked that a percentage of the monthly"rent" be applied towards the purchase price. He told me he has to check out the numbers and get back to me.

 

Since the house was just built and is a different style from the surrounding homes I cant really compare the house to any other. I happened to speak to one of the contractors who built it, who admitted the house was made of cheap materials.

 

Is 439,000 to much for this house. I have not even inspected it yet. It seems like one of those "add water and stir" houses. But I'm currently renting and this house would be right up my alley. If it does not work out I figure I could put in a clause so as to rent it to someone else. How should I approach this?

[Mr.B 0]

Well this may seem over simplified, but if you know one of the contractors just ask how much a new home cost to build per square foot if your using some what cheap materials. Then ask the seller how many sq feet the house is and multiply that number.

 

Also did the guy mention the price before or after you offered the L/O? If it was after he maybe over inflating the price to figure in appreciation.

 

Just some Ideas.

 

~Mr.B

[JuanaH 0]

Thanks Mr.B.

 

My husband and I just happened to catch the contractor while he was coming out of the house one day and have no contact with him. Also the price for the house was quoted prior to the L/O offer. I will contact some other contractors I know, get the numbers and do as you say.

 

But question:

What should I be looking for when I go to see the house.

 

Juana

[Kimberly 0]

JuanaH,

 

You just want to look through the house and see what it's like. How does it compare to others in the neighborhood -- counter top materials, flooring, floor plan, etc. How does it compare to other new construction in the same price range? If it is cheap construction, you will be able to tell if you look at a few houses in the same price range.

 

You said you didn't know the contractor who told you it was cheap construction. It could have been a warning about short cuts taken when building the house that shouldn't have been. OR That contractor could just have a grudge against the builder for some reason.

 

Kim

 

P.S. You might not even want to actually go look at the house unless you know the guy is interested in a L/P.