Is this a Good Idea??

Question

This sort of feels likes a no brainer, but want to be sure.

Would it be a good idea to purchase a single family house for $130k that was appraised for $190k?

Travis Timmons · Answer

There is a reason that it is being sold 60k under appraised value. Figure out what that reason is and assess.

Brad S. · Answer

Based on your info, it sounds like a great potential deal, especially, if they are repairing the pipes. First thing to do, RIGHT AWAY, is to LOCK IT UP! Get it under contract as soon as you can, with all your contingencies (inspection, appraisal, etc) and THEN work out the details.

Also, in the future, learn to do your own valuation/appraisal, so you can smell a deal without outside help. Of course, if you feel the need, verify it with appraisals, BPO< CMA's etc.

Paul De Luca · Answer

Yes, if the numbers make sense and there's nothing suspicious. Are you buying the property directly from the seller? Can't imagine why you'd get it for $130k unless the seller is very misinformed about the market value.

Scott E. · Answer

Is the appraisal as-is or subject-to?

This detail is important. For example if the home is valued at $190k subject-to a roof replacement, foundation repairs, and deck replacement... then it's not really worth $190k today.

This "as-is" or "subject-to" detail should be on one of the first few pages of the appraisal report.

Jarret Durst · Answer

The pipes just burst but they are having those fixed before they sell it.

Jarret Durst · Answer

He is a self-proclaimed socialist and doesn't care about making a bunch of money. His wife wanted to try and get more out of it but he wants to be done with it. He just has a second home that is completely paid off and wants to get out from under the mortgage of the home he is selling.

I will make the contract contingent on the appraisal value of the house, plus would obviously have a inspector look at it. My plan was to live in one of the bedrooms and househack by renting out the other 4.

Kerry Noble Jr · Answer

any repairs?

Is this a Good Idea??

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