Are A-Frames hard to borrow against?

Question

I'm considering the following place for my primary residence:

http://www.redfin.com/WA/Bonney-Lake/7223-191st-Ave-E-98391/home/2956561

I checked it out yesterday and I really liked (it really is something different) - I even had some beer with the neighbors who seemed really welcoming.

This place is an "A-frame" construction though.  I'm guessing this would be harder to sell due to less people being interested in a place like this.

What about borrowing against it?  Would it be appraised same/below/above similar sized lots/homes in the area, as time goes by?

Also, I found a thin crack (maybe 5" long, 1/3" wide) in the foundation - how bad is that?  The realtor told me most people live with cracks in their foundation and don't even know about them.  What's your take?

Also, from strictly an investment point of view, what are your thoughts on buying an A-frame?

Garry Yanke · Answer

Ivan - I purchased property in Bonney Lake, Did you end up getting that A-Frame? - Looks like it sold for $167,500 on 1/22/2010.

Is it yours?

Kel S · Answer

I can't blame you for liking this A frame! It's darling! I've never seen the inside of one before and love how it looks. Looks like they lowered the price to $199k. I'd be very irritated if my realtor EVER told me that an offer I wanted to submit would waste everyone's time. Of course she has never done that to us to date. But that would be the point where I'd be looking for a new realtor.

I always find out in advance too if other offers have been submitted on properties. Sometimes it makes a difference on if we bother putting one in or not. Just depends on if it looks like a property where it might of been listed SO low that the bank is hoping for a bidding war.

Account Closed · Answer

A sellerâ€™s agent is required to submit an offer to the seller (by Law) no matter what the offer price is - unless they have directions from the seller to not waste their time with anything that comes in under a certain price.

I would say you have the wrong buyerâ€™s agent if they are not on the same page of what youâ€™re trying to do. Make some calls - you will find an agent willing to spray offers for you until one bites.

A-Frames - Lending policy is the same for an A-Frame but the appraisal will need at least 1 like comp within 6 months that supports your value - thatâ€™s were you may run into some issues. That also can be a negotiating tool - maybe it's worth it to get an appraisal and then deliver the offer. P.S. an appraiser will give you an estimated value check for free - if you like the value (or it helps your cause) then spend the money.

Ivan Jouikov · Answer

Isn't the idea you look at 100 properties, make 10 lowball offers, and hope for 1 to get accepted?

I've looked at more than 100 properties; everywhere I wanted to make an offer - someone already made one.  From that I learned to find out in advance if there are any offers.

So now, even though my agent thinks the offer is too low, and the listing agent is saying they're not even going to look at it... from an invester point of view - should I still ask the agent to submit the offers?

The reason I say offers is because there's another place I want to make an offer on.  If these houses are sitting for months without any offers.. who knows.

So, from investor point of view, should I make those offers?  Even though my agent might feel his time is being wasted?

Ivan Jouikov · Answer

So, it's listed for 209k but a lot of recent comps in the area go as low as 160k.  Plus, this is an A-frame and should be even less desirable.

So I contact my Realtor and ask him to put in an offer for $150k.  He gets back to me saying he talked to the agent, and the client is a credit union, and they would not even consider an offer this low.

I made my points to the Realtor and said that there's no harm in putting an offer on the table, but he said it would be a waste of everyone's time and he's just being honest with me.

To add, this is not my agent's normal market - he usually works in the near-Seattle markets, which are 1 hour drive north.

Any suggestions for me?  Should I listen to my agent and let it go?

Kirk B · Answer

You will never know if it was a waste of time until you submit the offer. The seller has to present written offers to clients. They don't have to present oral offers to the client as far as I know.

Likely the low-ball offer will be dismissed, but you will never know for sure unless you actually do it.

Andy Bell · Answer

It is really nice place.I thing you should go after it .
          
          Regards
          Andy
          
          [LINK REMOVED]

Ivan Jouikov · Answer

My biggest concern though - do A frames in a residential setting appraise similarly to normal houses?

Note I didn't say sell, I said appraise.

Kirk B · Answer

I love A-Frames! (When I am at the ski resort).

I think A-Frames are people that like to heat with wood. I do not like to heat with wood.

Have a good home inspector investigate the crack.

GL! The house is kinda cool looking and has a beautiful setting.

Cary Donham · Answer

I don't think you would have a problem with the financing of the home just because it's an A-Frame per say but finding comps suitable for the underwriter to sign off on might be an issue.

Call a lender in your area and ask them.