All Forum Posts by: Ken Sanders

Thanks, Jon. I've been trying to figure out how many lots I can squeeze out of this parcel so that I can run comps and make an offer based on those numbers. Should I be treating this more like a rehab (Purchase Price = Resale Price - Rehab/Demo Costs - Fixed Costs) and assume that there is no subdivision possibility? I want to make the guy an offer that he won't scoff at, but I obviously want to ensure a nice profit.

I'm currently looking at making an offer to the homeowner of a small run-down rancher on 2.7 acres of good land in a good location. I was under the impression that this property had been abandoned for 10 or so years (needs demo'ed), however the Recorder of Deeds office tells me that the tax bills are still sent to that address. Regardless, I want this land!

The way the zoning works here is:

1. If there is no public sewer or public water available, the minimum lot area is 40,000sq/ft

2. If only public sewer is available, the minimum lot area is 30,000sq/ft

3. If both public sewer and water are available are available, the minimum lot area is 20,000.

The property is bordered by a main road (with manhole covers every X number of feet)and a McMansion development. Is it safe to assume that public sewer and water is available?

I'm trying to run the numbers in order to make my offer, but I'm having a hard time finding comps and arriving at an educated offer price. What am I missing?

Got it!

I assume that the water is turned off at the street and the power has been turned off by the power company. You think I could get a contractor out to turn them on? Would it be smart to do this while I have an inspector out?

I'm currently looking at a 6 bed, 2.5 bath, 2800 sq/ft REO home to rehab and flip. The house needs all new flooring, all new windows and doors (interior and entry), two new garage doors, walls patched or re-drywalled, exterior and interior painted, new kitchen with appliances, new roof, all bathrooms reomodeled - all things that I can calculate. The bank, however, has the water and power off and they will not turn either on for inspection purposes.

How do you more experienced rehabbers handle this? Do you assume the worst and subtract accordingly from your offer?

The house was originally listed in June for $340k and has since been dropped to 326k and is currently at $290k. Comps are in the low $400k range. I'm wondering how low I can go on my offer without just being dismissed. What would you guys do? I'm a cash buyer, also.

The property is listed as a level 2, which is a local/township historical list. The guy I spoke with was very familiar with how dilapidated the property in question is and he is the chairman of the committee that I would be applying to. I'll know more when I go to the meeting on August 9th. He suggested that in the meantime I get a Historical Impact Survey done as well as have a demo application in hand, so that they can make an informed decision (they just received the 60 page inspection report).

I've Googled around, but I can't even find out what a Historic Impact Survey is, much less it's cost. Anyone know off-hand?

The buyer's agent is telling me that the closing costs totals over $12,000 because the bank is requiring a full years taxes be paid upfront. Does this sound like BS to anyone?

I think, like Steve L. mentioned, she's tacking that on to the closing costs in order to use up the full $10k.

I'm selling a house right now for $294k with a $10k seller assist.

The agreement states:

SELLER ASSIST - Seller will pay $10,000 toward Buyer's costs, as permitted by the mortgage lender, if any. Seller is only obligated to pay up to the amount which is approved by the mortage lender.

Do lenders usually put a cap on the amount of allowable seller assistance? If so, what happens if they don't allow the entire $10k?

Am I correct in thinking that the buyer is still obligated to proceed with the deal (otherwise losing their deposit since the contingency period is over) and that I only have to seller assist up to the lender's max?

I'm looking to purchase a run down bank-owned property that is on a historic list and have it demo'd. The Historical Committee chairman told me that the owner of the property (the bank) would have to submit a Demolition Application, or that I could get a written authorization from the owner and submit it myself, in my name. Anyone have experience with this? Is it likely that the bank would grant me the authorization?

The Committee chairman also told me to look into a Historic Impact Survey. What is this and what do they usually cost?

Thanks so much for this response Financexaminer! That was such perfect advice!