Looking at houses. Realtor/seller is gouging.

[FrustratedUser]

Damn biotch!
Saw a house listed for $230k with basically everything I need. 1050sqf, car port, 600sqf unfinished basement, sundeck and 0.3 acres close to town.

Did a background check on the house and the current owner who happens to be the realtor bought it for $186k 6 weeks ago. :|

I met up with her and asked what improvements she had done in the last 6 weeks. This made her understand I knew what she paid for it so she finally spilled the beans

Anyhow, she put new paint on the walls, new dishwasher, new stove, she claims the bathroom was new (can't really check that, looked a standard white bathroom). Everything else was untouched. I would be very surprised if she put in much more than $8k and now she's jacking up the price by $41k. :thumbsdown:

I would consider offering her somewhere in the $210k - $215k range. She said she could be flexible if I don't use a realtor. I am now considering giving an offer but I'm a n00b.

Update 2005-21:

We spoke and she said she has an offer and it will most likely sell. I told her I wasn't going much higher than $205k anyway.

 

[TitanDiddly]

Walk off.

 

[Vette73]

Please tell me this is SF or some other "high" end part of CA? Cause 1050sqf for $230K

 

Find another house. The improvements she made won't make a direct effect on value.

You'd be a fool to straight up eat 12% appreciation at a minimum on your opening offer.
Unless the rest of the market in your area is holding appreciation rates that high, skip the house.

 

[FrustratedUser]

Originally posted by: PhasmatisNox
Walk off.

My thought too but the house is perfect for me. I've been thinking about what to do for the last few days now.
I just don't know the procedure for buying a house.

 

[Carbo]

What the current owner paid, and how much profit she may make is irrelevant to the buyer. The question you need to ask yourself is whether or not the deal is a good one for you?

 

[FrustratedUser]

Originally posted by: Marlin1975
Please tell me this is SF or some other "high" end part of CA? Cause 1050sqf for $230K

Charlottesville VA. I feel a 'bubble' here.

 

[MikeyIs4Dcats]

it's called flipping, and becoming more common. Doesn't matter what she paid for it if $230k is market value she will get it.

 

As an appraiser I'd be willing to bet that the appraisal will never come in at 230K. I doubt it would even hit 200K.

 

[FrustratedUser]

Originally posted by: SampSon
Find another house. The improvements she made won't make a direct effect on value.

You'd be a fool to straight up eat 12% appreciation at a minimum on your opening offer.
Unless the rest of the market in your area is holding appreciation rates that high, skip the house.

The market have been insane for the last two years here but I think this is borderline criminal.

 

[FoBoT]

they are trying to screw you

be very careful!!!!!!!!!!!!!!!!!

 

[FrustratedUser]

Originally posted by: FoBoT
they are trying to screw you

be very careful!!!!!!!!!!!!!!!!!

She called me twice today asking if I was interested. I said I was but not for that price.
Anyone know the best way to proceed without a realtor?

<---- being careful.

 

Get an appraiser to do an external appraisal on the house.
Approach her with that.

If the market can easily handle that value, then she is quickly going to dismiss you. If she is pushing the high end for that area, she is going to have a harder time selling.

 

[FrustratedUser]

Originally posted by: SampSon
As an appraiser I'd be willing to bet that the appraisal will never come in at 230K. I doubt it would even hit 200K.

I'm going to PM you the info I have including past sales of this house. If you like to have a look, I'd certainly appreciate the feedback.

 

[Kelemvor]

If you don't use a REALTOR, you better get a Lawyer. Especially if she specifically said she'd only work with you if you didn't get a Realtor of your own.

But technically it's her house and she can sell it for whatever she wants.

 

Originally posted by: FrustratedUser

Originally posted by: SampSon
As an appraiser I'd be willing to bet that the appraisal will never come in at 230K. I doubt it would even hit 200K.

I'm going to PM you the info I have including past sales of this house. If you like to have a look, I'd certainly appreciate the feedback.

Sure, though I'm not licensed in your state. I also don't have access to that areas mls.

 

[Amused]

Actually, what she paid for it is irrelevant. What is relevant is the appraised value on the home.

If she got a great deal she has every right to profit from it.

If she got it for $100 would you expect her to sell it to you for $100?

 

[TheNinja]

Originally posted by: Marlin1975
Please tell me this is SF or some other "high" end part of CA? Cause 1050sqf for $230K

$230K would hardly get you 1/2 of a 1050sqft house in my city. -- and no I am not lying.

 

[alkemyst]

Originally posted by: FrustratedUser
Damn biotch!
Saw a house listed for $230k with basically everything I need. 1050sqf, car port, 600sqf unfinished basement, sundeck and 0.3 acres close to town.

Did a background check on the house and the current owner who happens to be the realtor bought it for $186k 6 weeks ago. :|

I met up with her and asked what improvements she had done in the last 6 weeks. This made her understand I knew what she paid for it so she finally spilled the beans

Anyhow, she put new paint on the walls, new dishwasher, new stove, she claims the bathroom was new (can't really check that, looked a standard white bathroom). Everything else was untouched. I would be very surprised if she put in much more than $8k and now she's jacking up the price by $41k. :thumbsdown:

I would consider offering her somewhere in the $210k - $215k range. She said she could be flexible if I don't use a realtor. I am now considering giving an offer but I'm a n00b.

Gouging? Real Estate is whatever the market will bear.

House next door on a lot and half, sold 150k last Jan, way underpriced...I saw the sign on it's third day and the deal was already done.

3 months ago it sold $250k...nothing at all but painted. Still a steal, esp now that the county rezoned it to hold a rental attached to it.

That said, I have studied some areas, there are a few 'investors' flipping properties between themselves to boost comps. In one area I wanted to buy in $75k properties became $150k in a few months. Now they are above $300k.

Average is $325k or so here. You can buy better new, but most people don't realize that.

That is gouging.

 

Originally posted by: Amused
Actually, what she paid for it is irrelevant. What is relevant is the appraised value on the home.

If she got a great deal she has every right to profit from it.

If she got it for $100 would you expect her to sell it to you for $100?

The previous sales are very relevant to the appraisal.

 

[Amused]

Originally posted by: SampSon

Originally posted by: Amused
Actually, what she paid for it is irrelevant. What is relevant is the appraised value on the home.

If she got a great deal she has every right to profit from it.

If she got it for $100 would you expect her to sell it to you for $100?

The previous sales are very relevant to the appraisal.

I disagree. Again, the selling price of anything is what the market will bear. NOT what the seller paid.

I see this whining in FS/FT all the time. It's fscking stupid. If someone is willing to pay $230k she has every right to sell it for that.

 

[MikeMike]

newest house on my street is for sale for 310 k. im pretty sure its the WORST house on our street, proly 3k sq ft and about 4 acres, but its yard borders the main road. no trees etc.

just prolly like a year ago houses were selling for 275k with a better lot and same sq ft

i wish i had bought my house when my parents did <100K for the house and 5 acres of land with a beautiful setting.

damn. im pretty sure it could be sold for high 200.

 

[FrustratedUser]

Originally posted by: Amused
Actually, what she paid for it is irrelevant. What is relevant is the appraised value on the home.

If she got a great deal she has every right to profit from it.

If she got it for $100 would you expect her to sell it to you for $100?

Hell no. It's everyone's right to make a buck.

 

[TheShiz]

i am about to buy a 920 sq foot condo in the west end of Richmond, VA for $120k, prices around here aren't so great also, but you gotta live somewhere.

 

[Amused]

Originally posted by: FrustratedUser

Originally posted by: Amused
Actually, what she paid for it is irrelevant. What is relevant is the appraised value on the home.

If she got a great deal she has every right to profit from it.

If she got it for $100 would you expect her to sell it to you for $100?

Hell no. It's everyone's right to make a buck.

OK, then why the "gouging" accusation?