Updated over 10 years ago on . Most recent reply
Offer Advice - Owner Occupied Duplex in Southern Michigan
Getting close to putting in an offer for a duplex. The plan is to occupy one unit and rent the other out. I'm hoping to get some input (I've on an offer given the following:
- South Central Michigan - Desirable school district
- Listed for $130,000
- On market since Aug. 2104 without price reduction
- ~45 years old
- Original furnace in both units (works well but old - not inspected yet)
- Roof is ~20 years old (OK condition but old - not inspected yet)
- New windows in 1 unit, original windows in other (aluminum - good condition - not inspected yet)
- Unit 1 needs cosmetic work (deep cleaning, minor drywall patchwork, painting, carpet replacement/cleaning in several rooms)
- Unit 1 shorter term tenants
- Unit 2 is pretty clean and nothing needed by way of cosmetic repair.
- Unit 2 has long term tenants
- Both units rent at $825 per month
- Selling agent cited "income potential" for firmness on the price.
Based on the repairs that are needed, my gut feeling is that $130k is too much. However, keeping in mind the sellers "income potential" rationale, and the fact that the price hasn't been reduced since listing, my buyers agent has suggested to not go below a $120k offer.
Thoughts on a $120k offer to start? And maybe thoughts on a highest acceptable counter-offer (assume my budget has enough room for $130k)?
Any input will be helpful - thanks in advance!