House cost 105,000. Two house on the same block sold for 145000 two months ago. I check the comps now and i see some houses selling for 135k 132k and 145k but the 145k has been on the market for four months. Does this change how much i think the house is worth. Im going to live in this house and was thinking of offering 105000 its need about 8000 worth of work. What should i do and what would be a strong offer .
One more question if i intend to live in it can i pay lil higher then usual or investment and living in the house is one is in the same.
Real Estate Investor · Milwaukee, WI · Member since 2011 · 103 posts · 22 votes
15y
Well, I wouldn't agree with Homer.
I would say that since you are living in it, a lot of the investment tools that I would use go out the window. Cap rates and everything else are gone, and it has some more intrinsic value as an owner-occupied.
If the comps are right, you have a decent price with you right now. It's under not just the value but also the prices around you, since houses aren't selling for the values they were years ago. You should look at appreciation in the area, with websites like http://neighborhoodscout.com/ (with which I'm not affiliated, but I do love) and see what area appreciation is, and whatnot.
If it needs the work, and you don't plan on doing the work yourself, you are probably underbudgeting, especially since a lot of contractors will quote people higher, and you can't much get around that unless you make them know you are serious.
You don't have figures about rents, apprecation, location, or anything, but since it's your house and you are living there, it's hard to say. The asking price might make sense right there, I can't be one to say. Maybe subtract your estimates and try that price.
The only thing I would worry about is that when you go under 100k, it's a real mental block for people. It makes no good sense, but the difference between 99k and 100k is huge, it's between six figures and five figures! People don't like it, simple as that.
Just be careful if you really like the place, because you can pretty easily turn off a seller with too lowball of an offer.