Buying first property, for buy-and-hold in the future

Starting Out
11yFollow

Buying first property, for buy-and-hold in the future

Adam Brown
South Orange, NJ · Member since 2014 · 12 posts · 0 votes

Greetings:

How do I know I'm paying too much for a property? 

I have an offer to buy for $350k, but an assessment was done and aparently it's worth $150. 

The property was renovated for $133k and the land value was $21k. So, I see the windfall the sellers will make. How can I push-back, and negotiate? 

The rental income will be $1300 per unit, it's a three family. I plan on living in one of the units, and buying fha. 

Please advise. Thanks

0Reply
18 views

2 Replies

Jump to latestLatest
  • Adam Brown
    OP
    South Orange, NJ · Member since 2014 · 12 posts · 0 votes
    11y

    Also, are all first-time purchases usually going to get you in the deal "upside down" ?

    0Reply
  • Jean BolgerPro Member
    Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
    11y

    Do you mean assessment or appraisal? The "assessed value" that appears in the county records is not the market value. It a number that the county comes up with to determine the property taxes. It's usually based on a portion of the actual value.

    An appraisal is what you need to determine that property's current market value. If you are getting a loan, the bank will require a licensed appraiser to look at the property and give their opinion on the current value, because they will not lend more than the property is currently worth.

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free