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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Should we or shouldn't we? Need some objective advice!
Ok, so we think we found a house. We LOVE our area but the school district is "eh". About 2 miles north of where we live the school district is AMAZZZZZING, so that's where we are looking.
The house we found is located in one of the nicest spots - good school district, close to a park open only to township residents, lots of young families with children, etc. 3300 sq/ft, 1/2 an acre, 4 bedrooms, 3.5 baths, and a pool. It's a very unique setup and flow, which we love.
But, there are a few snags. First, and foremost, it is a DUMP. It is an estate sale. Parents moved to a nursing home and the daughter moved into the house with her kid. They are hoarders and absolutely FILTHY. They have several cats and smoke. So, basically, the house needs to be GUTTED, which happens to be our specialty  But, that also means it is NOT in livable condition.
Now, we are fortunate in that I have a large inheritance and DH's mother wants to chip in the rest so we can buy the house cash. That way we can live in our current house and take our time while we make the renovations, without having to carry two mortgages.
A house that is literally identical, on the same block, sold in 2005 for $500k. Houses within a 5 block radius with the same stats have sold for $450-$500k in the last year.
We figure, to get it into move-in condition, it will cost about $80k (that's with us doing most of the work, with a helper or two).
They are selling for $360k. We put in an offer for $300 and were rejected. Apparently someone just made an offer for $315k and they are in negotiations.
We are on the edge of making one last offer - $330k, cash settlement within two weeks, with only a termite inspection. If we get it for $330k, and put in $80k that puts us at $410k.
What do you think? Crazy? Or go for it?
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Posted 5/22/10 8:48 AM  |
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Cpt2007
A new love!
Member since 1/08 5946 total posts
Name:
Liz
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Re: Should we or shouldn't we? Need some objective advice!
i say go for it. if you think the return would be an automatic $30k increase based on the lowest current comp, it would be worth it. play hardball with them. i bet they are looking for money and if you are going in with cash with a 2 week turnaround time, they'd have to be completely nuts not to take it.
good luck! sounds great!
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| Posted 5/22/10 8:55 AM |
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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Re: Should we or shouldn't we? Need some objective advice!
I would totally go for it ETA: I love gutting houses, and making them our own..we aren't scared of work, we actually wouldn't mind it so we can put our spin on our house...
Message edited 5/22/2010 8:59:49 AM.
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| Posted 5/22/10 8:59 AM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Should we or shouldn't we? Need some objective advice!
Posted by Cpt2007
i say go for it. if you think the return would be an automatic $30k increase based on the lowest current comp, it would be worth it. play hardball with them. i bet they are looking for money and if you are going in with cash with a 2 week turnaround time, they'd have to be completely nuts not to take it.
good luck! sounds great!
Thank you! This is where I'm leaning. Even if we end up breaking even, which is unlikely, I wouldn't have a problem with it because we still get to live in a totally remodeled home in a lovely area, while sending our girls to one of the best school districts in our area.
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| Posted 5/22/10 9:03 AM |
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dajc23
My Loves :)
Member since 1/09 4980 total posts
Name:
Dana
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Re: Should we or shouldn't we? Need some objective advice!
I would take the house. You can do all the work yourself and the value will only go up from here.
It's a house that you seem to love in a great area.
Even if you were to turn around and sell the house in a year or two (not saying that you are, but IF) you'd profit a nice chunk of change.
DH is in construction and is always looking for fixer uppers and he said this sounds like a great find.
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| Posted 5/22/10 9:03 AM |
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jmf423
:)
Member since 5/05 6372 total posts
Name:
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Re: Should we or shouldn't we? Need some objective advice!
sounds like a win-win situation!
you get a great house in a great neighborhood, and you get to make it your own. if you can afford to do that (which it seems you can) and live in your current house during the renovations I would go for it!
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| Posted 5/22/10 9:07 AM |
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Peainapod
Peanuts are here!
Member since 1/09 13591 total posts
Name:
Diana
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Re: Should we or shouldn't we? Need some objective advice!
I would go for it. you would still be able to make a good return on it if one day you were to sell it b/c of all the new things you're putting into it.
for that price, no mortgage..i would so gut that house and make it my own. especially since you wouldnt have to carry 2 mortgages and can live in your current house while its being done.
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| Posted 5/22/10 9:30 AM |
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julz33
i run for bacon
Member since 5/05 20584 total posts
Name:
julz
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Re: Should we or shouldn't we? Need some objective advice!
go for it!
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| Posted 5/22/10 9:38 AM |
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tourist
Member since 5/05 10425 total posts
Name:
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Re: Should we or shouldn't we? Need some objective advice!
I probably wouldn't do it personally, but you have posted before that part of the reason you wanted to move for for a new project & you guys seems to enjoy & be good at renovations, so I say go for it, especially since you don't have to worry about 2 mortgages.
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| Posted 5/22/10 9:40 AM |
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KGools
Happy
Member since 9/06 9532 total posts
Name:
Kim
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Re: Should we or shouldn't we? Need some objective advice!
I dont' know a single thing about buying a house (we're not there yet), but I would totally go for it!
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| Posted 5/22/10 9:41 AM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: Should we or shouldn't we? Need some objective advice!
I say go for it, sounds like a great opportunity. Depending on how you heard about the 315K offer I would go in 320K cash 2 weeks, still higher but why pay 15K more than current offer they'd probably be happy to get anything more with such a quick turnaround.
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| Posted 5/22/10 9:49 AM |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: Should we or shouldn't we? Need some objective advice!
I say go for it! Though contingent on a home inspection not just termites. What if there is structural damage? You could eat away at your equity....
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| Posted 5/22/10 10:16 AM |
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JldDolphin
Member since 1/07 6929 total posts
Name:
Jen
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Re: Should we or shouldn't we? Need some objective advice!
Posted by Bxgell2
Posted by Cpt2007
i say go for it. if you think the return would be an automatic $30k increase based on the lowest current comp, it would be worth it. play hardball with them. i bet they are looking for money and if you are going in with cash with a 2 week turnaround time, they'd have to be completely nuts not to take it.
good luck! sounds great!
Thank you! This is where I'm leaning. Even if we end up breaking even, which is unlikely, I wouldn't have a problem with it because we still get to live in a totally remodeled home in a lovely area, while sending our girls to one of the best school districts in our area.
I totally agree with all of this. Go for it. It sounds like it will be the perfect home when you are done with it, you will save money because you guys are doing most of the work and you have the money to pay cash so it will be mortgage free. Go for it! Good Luck!!!
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| Posted 5/22/10 10:23 AM |
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jen919ifer
LIF Adolescent
Member since 7/08 803 total posts
Name:
Jennifer
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Re: Should we or shouldn't we? Need some objective advice!
I would go for it, you can update the house, and be in your ideal area
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| Posted 5/22/10 10:34 AM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: Should we or shouldn't we? Need some objective advice!
Posted by Bxgell2
Posted by Cpt2007
i say go for it. if you think the return would be an automatic $30k increase based on the lowest current comp, it would be worth it. play hardball with them. i bet they are looking for money and if you are going in with cash with a 2 week turnaround time, they'd have to be completely nuts not to take it.
good luck! sounds great!
Thank you! This is where I'm leaning. Even if we end up breaking even, which is unlikely, I wouldn't have a problem with it because we still get to live in a totally remodeled home in a lovely area, while sending our girls to one of the best school districts in our area.
ITA!! go for it!! good luck- how exciting!!
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| Posted 5/22/10 10:53 AM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: Should we or shouldn't we? Need some objective advice!
I would do it - no mortgage that's a beautiful thing!
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| Posted 5/22/10 11:26 AM |
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Goldi0218
My miracles!
Member since 12/05 23902 total posts
Name:
Leslie
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Re: Should we or shouldn't we? Need some objective advice!
Go for it and make it what you want - never settle.
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| Posted 5/22/10 11:44 AM |
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HillandRon
LIF Adult
Member since 5/05 2922 total posts
Name:
Hillary
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Re: Should we or shouldn't we? Need some objective advice!
When you gave the offer did you tell them it was a cash deal???
Are they in contract or are they in negotiations? As you are well aware, nothing is set in stone until there is a contract signed by both parties... and you know how real estate goes...
If they are not in contract, I would tell them that you have a cash deal and you are offering 320... If these other people still have to get a mortgage then the sellers would be crazy not to take a cash deal in this economy....
I would go for it ....
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| Posted 5/22/10 5:50 PM |
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leese
Sarge!
Member since 5/05 1965 total posts
Name:
Leese
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Re: Should we or shouldn't we? Need some objective advice!
I think I would try one last time at 320-325, but with an inspection contingency. Unless the other people are offering cash, they would be fools to not take a little bit more, plus a guaranteed closing.
The only thing I'd be weary of is not having it inspected. Because on the off chance there is something structurally wrong that could eat away at your $$ you plan on fixing the house up with.
Good luck!
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| Posted 5/22/10 6:45 PM |
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KittyGags
LIF Adult
Member since 7/09 5614 total posts
Name:
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Re: Should we or shouldn't we? Need some objective advice!
Posted by leese
I think I would try one last time at 320-325, but with an inspection contingency. Unless the other people are offering cash, they would be fools to not take a little bit more, plus a guaranteed closing.
The only thing I'd be weary of is not having it inspected. Because on the off chance there is something structurally wrong that could eat away at your $$ you plan on fixing the house up with.
Good luck!
What she said.
If I had the time and energy, I'd loove to do a whole house myself!
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| Posted 5/22/10 8:04 PM |
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Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
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Re: Should we or shouldn't we? Need some objective advice!
Like the PP's said, I think you should do a full inspection and not just the termite inspection. What if there is something structurallly wrong? $80k can turn into $100k, $125k, $150k really, really quick!
Otherwise, I would go for it!!
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| Posted 5/22/10 10:57 PM |
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SpiceGirl
Dream big
Member since 1/06 2486 total posts
Name:
j
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Re: Should we or shouldn't we? Need some objective advice!
GO FOR IT!!!! You were looking for a project and here it is! I can't wait to see the before and afters!
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| Posted 5/22/10 11:01 PM |
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