RosewoodTx
04-02-2005, 06:35 AM
This past Wednesday, I overheard my charge nurse telling someone that the young couple who said they would buy her house have changed their mind and will be moving out on April 15th. She then said that she was really tired of dealing with this house and just wanted to get rid of it. So, I engaged her in conversation to acquire as much info about the house as I could think of at the time and told her I would see if I could help her.
Located in Forte Wayne, Indiana
2 bdrm 1 bth w/attached garage
1122 sq ft home/240 sq ft garage
located on 2 lots just under .5 acre
2nd lot has slab (she had an old building removed)
built 1947/refurbed 5 yrs ago
new elect-new plumb-new sheet rock-new vinyl flooring
new roof/vinyl siding
bathroom has jacuzzi
has septic
no mortgage/she owns outright/inherited from parents
located on a dead end road in older established neighborhood
tenants will be out on April 15th
I asked her at this time what would be her get it off her back price and she did a little figuring and said 35k. I asked her why the current tenants back out and she said they could not get conventional financing because of the septic. I'm thinking at this point the septic is a red flag issue, but decided to call an Agent in Forte Wayne. Found a nice fella willing to run comps. He also pulled up the tax records and found that they were current and that the assessed value was 31,900. We were both puzzled about why the house would be on septic since it is located in the city. The other home assessment on the same street were between 30k to 80k. The following was his reply on comps for this home:
Elizabeth, I was not able to get a real clear comparison for this property. I would need to view the premises to get a better evaluation. I did find a home in this neighborhood that sold in June 1994 for $27,000. Here is an attachment with some other properties in the similar location that may give you a feel for what this particular property is worth. All of the similar properties have city water and sewage hook up. If you need for me to check the County Board of Health records about the water and sewer for the property you inquired about, please let me know. If you would like for me to do a more complete analysis for you, please let me know and I will personally view the property.
After looking at his three comparables it appears the only thing they have in common with this house is that they are in Forte Wayne and they are single family homes, also two of the homes were active. After reviewing this I'm thinking that this isn't gonna make money. My intentions were not to purchase myself but to get all necessary info to a buyer, which I intended to hunt for once it appeared there could be a profit made. So things don't look so good at this point.
I spoke with my nurse again today and told her that I had someone trying to get a fix on the FMV and questioned her further on the septic issue. She said that she and some of the other neighbors had approached the city three years ago and the price for providing city sewer would be 30k and everyone backed out. There are about 6 homes on this street. I'm thinking that would only be 5k a piece, not so bad, but apparently some of the neighbors didn't go for it and so it goes.
She said the septic is not giving her problems its just old and when she inquired about getting it replaced with a larger one the contractor told her it couldn't be done according to regs unless her property was at least 2 acres. She's in a fix. At this point I suggested she just may consider keeping it for cash flow and keeping it rented out. She became very anxious about that thought and expressed very much that she wants to be rid of it and had already decided if I couldn't help her that she would just find some place to get it auctioned off and take what she could get for it.
The Agent in Fort Wayne informed me that he would take a look at the property on Monday or possibly Tuesday and make inquiries about the septic issue. What a great guy! On my next post I'm going to include a link and invitation to Magic Bullets and shame on me for not already extending an invite.
So there it is. Please give me some feedback.
Please refer to my updated post 'Need help w/this deal!'
Located in Forte Wayne, Indiana
2 bdrm 1 bth w/attached garage
1122 sq ft home/240 sq ft garage
located on 2 lots just under .5 acre
2nd lot has slab (she had an old building removed)
built 1947/refurbed 5 yrs ago
new elect-new plumb-new sheet rock-new vinyl flooring
new roof/vinyl siding
bathroom has jacuzzi
has septic
no mortgage/she owns outright/inherited from parents
located on a dead end road in older established neighborhood
tenants will be out on April 15th
I asked her at this time what would be her get it off her back price and she did a little figuring and said 35k. I asked her why the current tenants back out and she said they could not get conventional financing because of the septic. I'm thinking at this point the septic is a red flag issue, but decided to call an Agent in Forte Wayne. Found a nice fella willing to run comps. He also pulled up the tax records and found that they were current and that the assessed value was 31,900. We were both puzzled about why the house would be on septic since it is located in the city. The other home assessment on the same street were between 30k to 80k. The following was his reply on comps for this home:
Elizabeth, I was not able to get a real clear comparison for this property. I would need to view the premises to get a better evaluation. I did find a home in this neighborhood that sold in June 1994 for $27,000. Here is an attachment with some other properties in the similar location that may give you a feel for what this particular property is worth. All of the similar properties have city water and sewage hook up. If you need for me to check the County Board of Health records about the water and sewer for the property you inquired about, please let me know. If you would like for me to do a more complete analysis for you, please let me know and I will personally view the property.
After looking at his three comparables it appears the only thing they have in common with this house is that they are in Forte Wayne and they are single family homes, also two of the homes were active. After reviewing this I'm thinking that this isn't gonna make money. My intentions were not to purchase myself but to get all necessary info to a buyer, which I intended to hunt for once it appeared there could be a profit made. So things don't look so good at this point.
I spoke with my nurse again today and told her that I had someone trying to get a fix on the FMV and questioned her further on the septic issue. She said that she and some of the other neighbors had approached the city three years ago and the price for providing city sewer would be 30k and everyone backed out. There are about 6 homes on this street. I'm thinking that would only be 5k a piece, not so bad, but apparently some of the neighbors didn't go for it and so it goes.
She said the septic is not giving her problems its just old and when she inquired about getting it replaced with a larger one the contractor told her it couldn't be done according to regs unless her property was at least 2 acres. She's in a fix. At this point I suggested she just may consider keeping it for cash flow and keeping it rented out. She became very anxious about that thought and expressed very much that she wants to be rid of it and had already decided if I couldn't help her that she would just find some place to get it auctioned off and take what she could get for it.
The Agent in Fort Wayne informed me that he would take a look at the property on Monday or possibly Tuesday and make inquiries about the septic issue. What a great guy! On my next post I'm going to include a link and invitation to Magic Bullets and shame on me for not already extending an invite.
So there it is. Please give me some feedback.
Please refer to my updated post 'Need help w/this deal!'