Advice needed on buying
Question: I need advice badly. I am trying to buy an older frame home in Oak Park, Illinois with asphalt siding. It is a 1&1/2 story with 3 small bedrooms, small closets, small bathroon with a half in the basement and no linen closet. But then, it has a newer roof on the house with insulation, newer energy efficient gas furnace and central air. The basement is finished and there is a summer kitchen in the basement. The owner is leaving all window treatments, appliances in both kitchens, there is an older but okay 2-car garage with opener. It’s roof was not redone. But hey, what do you “experts” think? The owner is asking $129,900 and my husband doesn’t want to pay more than $119,000. I think $122,000. Can you give some expert advice. Any and ALL will be appreciated.
Answer: This is where all the FSBO stuff goes astray. Use a Realtor to determine the comparable sales, or hire an appraiser. It is the only way to insure you are paying market value for any property. Otherwise when you go to sell you may be in for an unplesant surprise You need to determine the market value of the home, usually through an appraiser or realtor. If the market value is close to what your husband is willing to pay I would offer approximately 5% less than market value and attempt to negotiate up to what your husband is willing to pay. Just a little advice off the cuff. The only “Expert” would be a licensed Appraiser and he would have to perform an appraisal in order to determine the value of the property.
If you are using a real estate agent the agent can furnish raw data on comparable sales. If the agent is working for the seller (90% of the cases they are) the agent is *not* allowed to interpret or explain the data to you since it would not be in the sellers best interest.
You could pay a real estate agent to provide the data and help you interpret it for a fixed fee (as long as the agent is not representing the seller).
The most accurate method would be to pay for an appraisal. Since a lender will probably require an appraisal before loaning you any money you should use an appraiser that the lender has approved. You can call the lender and ask them for a list of their approved appraisers. A word of caution: the lender will require that the appraisal be done within a reasonable length of time before closing. Be sure to ask the lender for their requirements. Also, you need to get the sellers *written* permission to do an appraisal if the Appraiser is going to enter the home.
Remember that the Appraisal Report is your property if you order and pay for it yourself so you are not required to reveal the appraised price to anyone. And, you should instruct the Appraiser *in writing* not to discuss the Report with *anyone* unless you give written permission. This is important if the house appraises for a larger amount that you are paying for it.
The cost of an appraisal is very small compared to the price of the property.
Good luck
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