All Forum Posts by: Scott Szurek

I have not checked out my posts in a long time.  Looks like you made it onto Spotify.  Congrats! Just curious when was it?

@Roy N.

Thanks for your input.

No improvements except for a new high efficiency hot water heater with direct vent.  

The appreciation for the local area for the last 18 months is tough to estimate, possibly somewhere around 3.5-5.5%.  I think short-term appreciation is one of the harder aspects for valuing properties, especially ones that are mediocre.   While most houses actually depreciate in value, the actual dirt the property is on does not.  More or less, the lot is major contributor to increasing a properties value.  

I agree with you on the gauging the price off of the most recent appraisal.  My negotiation play is to somewhat cancel out the discount given to my tenant for not using an agent from actual "real market value" with the appreciation that has occurred from the last appraisal.  He is trying to propose a 6% discount, when in fact it is only 3.  He saves himself 3 percent, as do I, minus attorney fees.  

I do not plan to "wring" out the tenant, however I want to sell the property as quickly and for the most amount of money possible.  

Hey BiggerPockets,

Here is my scenario:

I have a tenant that wants to purchase my home with a current lease agreement as follows:

• Lease will terminate on 7/31/2106
• Tenant can terminate lease without penalty via a 90 days notice (essentially is locked into staying until 7/31/2016 if does not give notice by 4/31/2016
• Current payment is quarterly payment $6250 due 4/13 and will prorate from 7/13-7/31 (if necessary) for $1170.

My PITI is $2075 (it was a close to a printing press before I refinanced last year).

Ideally, we close as soon as possible, as I am ready to start full on to my next project. The numbers for both parties are mutually beneficial for getting this deal done. I am basically breaking even minus any major maintenance and repairs, which are fairly unlikely. The tenants new PITI is in a range of (2000-2170) based on a 30k final price spread ($370,000-$400,000) and 3.75%-4.00% 30 year loan. The property will transfer as-is, meaning I am not going to spruce it and use money for an open market listing. Further, to rent a similar house he is looking at minimum $2500. Tenant has resided in property for more than 4 years.

What type of discount/incentive should I give up to my tenant? On an open market the property is worth and should sell relatively fast for ~$385,000-$400,000 via recent comps and current market conditions, and 18 month old refi appraisal $375,000.

With the above information what would you sell the property for?

The purchase agreement will get prepared by a very intelligent seasoned real estate attorney. To make sure every is kosher, what are some key elements the contract will need to make everything in my favor?

Should I allow the tenant to do an inspection?  Obviously, I don't want him to do it in case anything major pops up, but highly unlikely.   The house rates at C+/B- quality and A/A+ location.

Tenant is pre approved for loan above $400,000.

Any other thoughts/questions about the above scenario?

Just came across this site spftx.com and it looks interesting.  Has anyone out there used SQFT and actually closed a deal? Looks like a decent and more economical way for the FSOB option.  

How many of you REI's have FSOB (either seller or buyer) successfully?

I recently had my house appraised to remove PMI. The appraised value came way under actual market value. The report included various errors, absolutely terrible selected comps, and overall just showed terrible local knowledge by a very inexperienced appraiser. In fact, it was a husband wife team, the husband the owner of the company assisted the wife, but did not sign off as a supervisor.

I went through the appeal process and submitted a very detailed report for a "reconsideration of value" and was denied by the AMC who reviewed the report. The AMC, a subsidiary of the lender - how is there any objectivity here? - came back and agreed with the appraisers value, stating various reasons why my comps did not work, and included no justification for my other various complaints about the original appraisal.

I then called the Lender stating the errors that the AMC noted in their review, which coincided with original errors of the appraiser. The lender insurance department said they would look into them. This was three weeks ago, I let a week go by and called they said they would get back to me in less than two days. Another week went by and after calling three times in the past week the lender advisor involved is now never available.

I am ready to take legal action.  Does anyone have experience with this?  

@Mindy Jensen

I know this is area dependent, but I am in the process of deciding on either James Hardie or LP smartside.  What did you pay for per sq for LPSS?  Was it over existing siding or a new build?  Thanks!

@Jorge Magana

I want to use 100% accurate and the most up-to-date data!

I am wondering where to find local sales data for previous sold real estate transactions (SFR, Condos/Apts, and rentals ? I do not have access to MLS, so that is out. I do not want to use Zillow or other like real estate sites. Does the city tax assessor provide this information? How often do they update it?

Originally posted by @Joel Owens:

Joel,

Yes, I am trying to focus more on SFR, but welcome any discussion about other sectors. What do you mean by "pretty long in the tooth"? What about existing rehabbed SFR?

Also, yeah...Each individual market have their own cycles. I guess I am trying to see what people think more on the macro-levels.