efete1 0 Report post Posted August 16, 2011 Hi all Hope everyone is enjoying the remaining summer! I am curious as to how appraisals come into the mix with a pure option. I spoke with an owner the other day who "needs" to sell as she is buying another house. She has been trying for some time now and a Realtor also tried for over 6 months. Doesn't want to do the lease option as she can't qualify for a new place without selling, etc. She is open to me helping by doing a straight option. Only problem is the numbers are too tight. If I tack on a few dollars to the price to get my fee I suspect it won't appraise for that. How often is this an issue? She owes 148K or so. Comps are around that. Only way to make anything is to option it for 152 or so. Not sure if that is worth the hassle and don't know if a cash buyer (getting a loan) would do this if his realtor pulls comps or gets an appraisal, etc. Any guidance? I haven't done any pure option deals and just wanted to see if I could make any lemonade out of this lemon! Happy investing all! Eric Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 16, 2011 Greetings, Eric. Sometimes the deals that are in our lap aren't workable because of the situation you just described. Meaning, the homeowner hasn't any equity. This appears to be the case here. A cash buyer is going to want a discount, (or at least he should want a discount), and even a buyer going for a mortgage is going to have an appraisal ordered. If the property doesn't appraise, the deal dies and you're left with nothing. There just doesn't seem to be enough meat on them bones to make it a worthwhile venture for you. Share this post Link to post Share on other sites
Adam 0 Report post Posted August 16, 2011 I spoke with an owner the other day who "needs" to sell as she is buying another house. She has been trying for some time now and a Realtor also tried for over 6 months. Doesn't want to do the lease option as she can't qualify for a new place without selling, etc. She is open to me helping by doing a straight option. Only problem is the numbers are too tight. If I tack on a few dollars to the price to get my fee I suspect it won't appraise for that. How often is this an issue? She owes 148K or so. Comps are around that. Only way to make anything is to option it for 152 or so. Not sure if that is worth the hassle and don't know if a cash buyer (getting a loan) would do this if his realtor pulls comps or gets an appraisal, etc.Hi Eric, Without knowing the Homeowners specific situation, if she "needs" to sell maybe she would consider paying a little out of pocket at closing to cover your fee? Might be worth at least asking. Has she already found her other house? If so, she might already be getting emotionally attached to it such that she would do anything to get out of her current house. Especially since she has been trying for so long to try and get rid of it. If she isn't open to that then I think it's time to move on. Share this post Link to post Share on other sites
