Advice on this one pls

4 Replies

This is a house in a great school district in ,xNorth Jersey that has come back on the market after coming out of contract. The price has dropped from 249K to 199K. Sellers are motivated. 3bdr/1bath. Great Move-in condition . Taxes 8800$ -can be appealed to lower after purchase.

I think the reason for the low price is the location-it's just overlooking the river. If not for this, we see similar houses listed in the range of 400k in this town.

How much can I make an offer considering it came back from a contract for 249k?

Account Closed I would question the big drop. Was something found by the last buyer that was significant? Ask. Ask for a list of known defects. They cannot refuse or lie about it. 

What would your plans before this house? 

Houses in move in condition are usually not listed too much under value. If they are they are scooped up really fast. You are competing against all other retail buyers.

Why did the house come out of contract at $249,000? Several things could have happen. The buyer may not have qualified for loan. The house didn't qualify for loan. The buyer just got cold feet. There were things found about the house during inspection.

What are your plans? Do you intend to live in house? The house is probably not listed more than 5-10% under value at most. That is OK as a retail buyer, not as an investor.

Good Luck.

Bill

on questioning, the reason I got , for the drop in price, was that it was because it is on the river, it needs flood insurance which has become unpredictable nowadays . It is in 100 yr flood plan .

I was toying with the idea of offering 175k and renting it out for 2500$ which is in keeping with the comps . ....I checked the flood insurance-it's 2000$ a yr now.

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