There's a multi for sale in the area I have 2 4plexes in...for over a year, two different realty's...The numbers are better than any of my 3 buildings. The price has continually been lowered. The ad has the wording 'Seller motivated, make an offer"... Does that desperate tone scare people off? Who knows? What scares me is that there are many fish swimming in the RE sea, surely it's been looked over by many, many people, and it's still for sale...
I'm interested but can't help but wonder, I don't consider myself sharp when assessing properties, and the sharp guys have surely seen something that makes this building a "pass", what do they see that I don't?
As I said, the numbers are better than any of my buildings, and I can easily buy it... but there must be something I don't see...
I've walked around it, but not through it. Looks ok to me.
Schedule a showing to satisfy my curiosity?
Definitely @Arnie Guida . Even if you don't remain interested you get some more market knowledge under your belt that will help you make better decisions on other properties you might pursue. I would view it with the listing agent and ask them questions about what is wrong with the property. Maybe basement/foundation issue, that usually scares people.
Go for it Arnie, you never know what you might find.
This deal may have something fishy, however, investor behavior and psychology is imperfect, and lots of valuable deals pass by because of some of the reasons that you mentioned.
Try to see this investment as objectively as possible. Maybe bring on an inspector early on, even if you don't normally do so, maybe higher an appraiser. I don't usually do those two things, but if I was concerned about a property that my gut wanted but my brain wasn't sure about, it would help me see straight.
It's best to see with your own eyes, if you don't want to waste your time, bring an expert on your visit.
1. could be structural
2. could be in the title (cloud on title)
ALSO ASK the agent WHY it's been on the market for so long, ask the right questions you'll get right answers.
IF there doesn't seem like anything is wrong with the building
it could be that it didn't PASS the code enforcer requirement, it FAlLED dye test or can't get occupancy permit. Or the seller could be just a hard person to deal with and buyers walk. so many variables ;p
Sometimes great deals are made on properties that have been siting around for a while. Other people are probably wondering the same thing as you.
I just bought a property that was on the market for a year and am pleased as can be with my purchase.
Could be any number of things that scare people off. Leaking underground oil tanks, zoning issues, third-party easements, lead paint or asbestos, foundation problems, title issues, flood zone reclassification, etc etc
Some of these could prevent financing but are solvable long term, so perhaps if you can pay cash you'd be OK. Others, I probably would never touch, not even if the the price was amazing. Example: oil tanks scare the heck out of me because of open-ended liability concerns - although other investors are perfectly comfortable with the risks under the right circumstances.
Definitely check it out - usually there is a reason for a property sitting like this but sometimes you can turn the rocks into gold. I have found (alert: drawing from somewhat limited experience!) that some of the best deals tend to be those where I'm willing to put in that extra effort other investors don't want to bother with.
@Arnie Guida there are a lot of people who don't even bother looking at the older listings on the MLS, and don't even realize it when the price of a property has dropped. I have seen this many times with a property that originally was overpriced becoming a bargain over time as it's price is dropped 3 or 4 times.
Yes there is gold following up with sellers seeing if they have changed their tune.
Time changes motivation in a good way for the buyer sometimes.
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