deal analysis - duplex for $111k

[Paul Nagy]

Hello everyone! I think what I found to be a good deal but need more advice from the "pros."

Lawrence, KS (college town; University of Kansas) Asking price $125k

Side by side 2bd/1bth each with 1 car garage. Built in 1967

Each unit rents for $625 and both are currently rented.

No major maintenance or repairs needed at this time.

Estate sale and duplex has been on the market for over 6 months.

Planning on offering $106k and final/best offer would be $111k

Approved with 20% down at 3.75% interest rate for 30 years

At $111k PITI would be $575 per month.

Thanks & any thoughts/advice would be greatly appreciated!!

[Will Barnard]

FYI: Not sure what you did offer originally, but your posted question of $99k or perhaps $101k brings me to point 2 important things out.

One: Anytime you are at the cusp of turning the dial from 5 digits to 6, 4-5, 7-8, you get the point, go just over it as it appears to be more to the seller. For example, in sales, it is common to use a sales price of a car at $14,995 rather than $15,000. Ultimately, they are the same, but to the customer, the $14,995 looks and sounds better. Now imagine you are the seller getting an offer. what looks and sounds better? $99,000 or $101,000? Offer the $101k as $2k makes little difference in the grand scheme of things.

Second point: The ask price is $125,000 and in my experience in our current tight inventory markets, if you do not have an offer at or above 80% of the ask price, don't even expect to get a response let alone an accepted offer or counter. 85% or better will get you in the door. At 107k, you are at 85.6% which should yield not only a response, but a good shot at it.