Creative offer question

2 Replies

Hello,

I have been working with the seller's agent and he is indicating that they are highly motivated to sell.  The sellers moved to another city and need to  get this off their hands.  I need help trying to figure out what other options I have instead of increasing the offer.

Asking: Initially $125 > $109 current

Offer: $90k

Manufacture home, 4/2 built in 2010 on 1/2 acre, small town with no rentals homes available.

Rent: $800-$1000

Tax Appraisal: $102k

According to seller's Agent - Owner Owes: ~ $90K, and needs to pay him still.  Does it make sense to bump to $95k, what they're willing to sell so they don't have to write any checks, which would put me at close to $100k after closing. 

Options for me: have bank convert loan to my name if rates are good and avoid paying appraisal and any other costs I can bypass.  

I can't think of any solutions to resolve seller's issue without me having to put more money in.  I don't know how manufactured homes fair over time, so I feel a little risk.

Take the property Sub2.... you'll have some cash outlay (pay off the realtor and all closing), but at least you get a loan that is already in place, save those costs, and shave some time off the loan. How old is the loan? At about year 10 of a 30 year am, you have paid more than half the interest on a loan. That to me would be worth paying off the agent.

So Sub 2 being that I would take over their loan payment.  How does that exactly work?  Do we need to inform bank of the change and if not, will the bank not find out when I renew insurance and they get a copy with my name on it and potentially call the loan due in full amount?  In this scenario, basically the seller would be turning over the deed and assuming I will be making the payment on a loan under their name correct?  Definitely makes sense for me to do it on my end, but I'd think seller would be nervous to do it.  I am not aware of the terms on the loans yet.  I made a mistake earlier, the manufactured home was built in 2004, so I take it the loan has to be 10 yrs the most unless they refi'd it, which to me it seems like, because the amount seems so high still.

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