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    Buying a house/property, how to get the price reduced?

    Looking for some insight, opinions, and overall suggestions on how to approach a home owner to reduce the price they are asking.

    I've been looking at this particular house/property for years.
    The current owner bought it back in 2007 for $120K when the original owners got foreclosed on. He bought it site unseen and seriously overpaid by $50K (he purchased based on records back in 2005 and the values of the surrounding homes... idiot).

    Quick back history on the original owners. I knew them my entire life. They were spend freaks, never paid their mortgage... just took them 24 years to finally lose the house and get foreclosed on.

    Anyways, when the current owner bought it back in 2007, they did ZERO improvements and began renting it out. It's had six different tenants in it (all with kids and dogs) over the last ten years. No real maintenance has been done to it, no paint, no new windows (it has the original aluminum windows that were installed in '83). nothing.

    The current tenants have done the most to the house by actually mowing the weeds around the building.

    In April/May of this year, the owner listed it for sale for $150K. Nobody came to look at it, because from the street it looks like a crackhouse.
    Shortly after that, they took it off the market (again, he has tried to sell it in years past too).


    Now this is where it gets interesting. I know EVERYTHING that is wrong with the house. Why? I knew the original owners and what they did to the house.
    Just to name some of the issues... the garage has been 'lifted' to accommodate larger trucks, but was done so without a permit and without any engineering, thus the roof of the garage is leaning to one side by about four inches.
    The front room addition was done without a permit as well. They just dug out the foundation and poured a 24" slab and built on that (the carpeting is glued to the concrete).
    The back lean-to porch area is sagging as well (didn't build it right).
    They poured a concrete patio OVER the septic tank. They've had to saw out a nice block so you can have access to it.
    The house has been flooded twice, once via a 550 gallon fish tank and another via frozen water pipe bursting.
    The original owner poured concrete in the crawlspace as some sort of DIY method to keep the house cooler (I never understood his philosophy behind this).

    The list goes on... seriously it has a sh*t ton of issues. Getting a home inspector called in would probably get it condemned (not a bad idea to be honest).


    Does anyone have suggestions on approaching him?
    I know he wants to sell (he's old), but he is simply way over priced for the market, the area, and especially the value of the land/house. I don't want to lowball his ass and get him pissed off to the point he won't even want to negotiate, but he is just way off base.

    EDIT: Forgot to add, the reason I want it is that it's an adjacent property.
    Last edited by Jon; 08-14-2017, 11:00 AM. Reason: Added extra info
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    #2
    I don't know if you know much about doing things without a permit... and I don't know what happens if someone buys a home that had things done without zoning and planning approval and permit but... if someone does something without a zoning and planning permit they can come in and make you tear everything down. And fine you by the day.

    Honestly man... this is a mess. I've seen people not play by the rules and end up in county court over things like this. The owner, not the buyer.

    I don't think he can sell the house. Because unless someone is coming in and paying cash any bank is going to want to be able to secure the loan. I've been in houses doing inspections. (Pest inspections). If it had termites or termite tubes were found it was a no go. We wouldn't pass it.

    Has the owner sold many homes in their life? It sure doesn't sound like it.

    And $150k it sounds like they would spend $50k just getting it to where a bank would give out a loan on it.

    Unless your paying cash any bank is going to run from this house. Unless you are paying cash a home inspector will be involved. I've never ever heard of someone getting any type of loan for a home without a home inspection. Typically more than one type.

    Everything I stated here is what I've found through various experiences. Again, things change from state to state and county to county. But some and in fact most key factor are generally the same. Hope this helps.

    Also, just stating this as well. Some people with awesome credit and in the right scenario can borrow money to buy a house without a mortgage. But the APR for a loan like this is typically way more than that of a home loan. Unless someone has cash it's going to be super tough for the owner to sell the home. And knowing what all has been done without permits and everything that's done jankey... wow.

    It being adjacent I see it's appeal to you. Do you own the home your in now and don't plan to move your primary residence? I guess a better question would be, what would be your plans with the property if you were able to acquire it?
    Last edited by H311RA151N; 08-14-2017, 06:38 PM.




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      #3
      I am trying to find a link for you about the damages to foundations caused by water damage but i cannot for the life of me find it. Sounds like the only thing good is possibly the land, the house next to mine was in the same situation and some putz bought it without looking at it as well, guy had; a new roof, piping,sheetrock and foundation repair done(at least that i know) before being rentable because the house with repairs were more than market value, another victim of House Flippin' shows i guess.
      [url=https://flic.kr/p/2hFNC7Z]

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        #4
        Bingo Jesus!! All I want IS the land. Getting a house mover wouldn't be an issue.

        My Dad works for the local government as their senior plans examiner. He's been working at the engineering department for 45 years (maybe it's 46 years, I can't remember). So playing by the rules is a must. This is also why I am fairly versed in the rules, regulations, and building code for our area.

        The reason I know the roof was jacked up was because I saw it (I was 10 or 11 years old when they did it). Even went over and watched him cut the top plate from the raters/wall and proceed to use bottle jacks to jack it up. As a kid it was neat to watch, as an adult I can't believe what he did. That and the fact that he didn't kill himself or anyone else in the process.
        Here is a picture of it about five or six years ago.


        I know, it kinda looks Photoshopped, but it's not...
        It's hard to tell, but the right side is sagging (as well as the middle) more so than the left.
        I have some interior shots somewhere in my photos too (which I may post).

        To answer some of your questions Josh.
        1. The owner is in his late 80s, maybe early 90s, has a lot of rental homes throughout our town and neighboring areas. He has not sold a single one of them (that I know of). Seems like he just knows how to buy cheap properties and rent them out.
        2. Payment would be in cash (higher incentive for the seller). I'd have to liquidate a lot of stuff I have, but again would be worth it to me (various reasons).

        Best case scenario would be this.
        A. Purchase the house for a reasonable price.
        B. Remove house and recoup some money from sale/moving of house.
        C. Remove foundation, leave sceptic system.
        D. Restructure of plat, i.e. remove property line between both parcels of land and into one.

        After all of that is accomplished, I would look at putting in a nice sized shop to do my woodworking and automotive work.
        In addition, since I have a large inventory (for my ebay business) I would also look into adding more storage for those items as well.

        I'm just looking at how best to approach the gentleman. Asking him how much he would take to unload his sh*thole just doesn't seem to be the best path... but maybe it's the right path?
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          #5
          Originally posted by Jon View Post

          I'm just looking at how best to approach the gentleman. Asking him how much he would take to unload his sh*thole just doesn't seem to be the best path... but maybe it's the right path?
          Some folks including my wife disagree with my method which is brutal honesty but i would be straight forward with the dude; the house is worthless and give him an offer for what the land is worth. He has two options at that point

          1. Make a counter offer for what he thinks is right
          2. Tell you to get bent

          An old man told me one day; 'when a baby want the tit he cries so when you want something you gotta make yourself heard too", afterall everyone has a different value for everything and im sure your value of his house might not be where he puts it at. A beer, tea, coffe or gatorade have helped me in the past to sit down and negotiate with folks over their stuff and be clear that it is business and dont get personal over the nasty of the negotiation. My dad once told me that seller has the right to ask and buyer has the right to offer or outright walk away.

          example of how i got the camaro my dad has now
          Camaro guy: want to buy a camaro?
          Me: depends what you askin'
          Camaro guy: it hasnt been started in 11 years but i can take $1000
          Me: I bet you would, patio decoration for you at this point
          Camaro guy:500?
          Me: call the JY and see what they offer
          Camaro guy: $200
          Me:I'll match
          Camaro guy: Ill get the title right now
          Me: Ill call the tow truck
          [url=https://flic.kr/p/2hFNC7Z]

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            #6
            Oic, I get what your getting at. Sounds like you know your stuff and at least one person in a really good position as well.

            I don't know how to barter that well. And I've never been in your shoes or even close. Owned a home and sold a home and that's it.

            Wonder how much you could get him down to. Be nice if you got in at $100ish. You seem to be in a better position than anyone else who could possibly throw their hat in the ring. Given enough time something will happen with the property.

            Renting it out that long it's likely paid for it's self.




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              #7
              Picture of the interior of the garage. Forgot to add that he also partitioned the garage off to add another 'bedroom' in the back...



              Going to see if I or my Dad can get ahold of him and talk over a few things. The place is starting to become a bit messy again. Kinda play it by ear as to whether or not to approach him on selling it, maybe ask if he is planning on re-listing it on the market or if anyone was interested in it a few months back... see where the conversation goes.
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                #8
                Seeing how it goes is about all you can do. In all honesty you probably have a better chance than anyone at striking a deal with him. And the guy might be more apt to give you a better deal than he would anyone else. Hopefully. You have more business with it than anyone other than the current owner in my mind. I mean, the situation being what it is. You'd do with it what needs to be done one way or another as you have an interest in it already being as you live literally right next door. Just my opinion.




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                  #9
                  Let's keep in mind that to meet the safety standards of today may take a lot of work too, including the septic.

                  As for the old guy, he won't sell or lower his price. If he has multiple units like this then he has no incentive to sell. He does work to them without permits knowing it won't be his problem eventually. He'll die and not his problem after that.

                  Just my opinion.

                  Comment


                    #10
                    Originally posted by Raf99 View Post
                    He does work to them without permits knowing it won't be his problem eventually. He'll die and not his problem after that.

                    Just my opinion.
                    agreed. on the other hand, you might be able to appeal to his desire to have a lump of funds appear: if he has enough equity in it, and he has enough other properties, the reduction in monthly income may be irrelevant in comparison to tens of thousands of cash upfront from a sale. Perhaps he just never wanted to bother going through the sale process, or never had anybody interested before. It might be worth offering to take it off his hands, and if he gets super stingy on price, only mention a couple of the things that would be on YOU to fix, careful with your wording as to not cause him to go on the defensive about the topic. Like you could mention various repairs that might need to be done ("seems the garage will need some work as the slab is sinking") etc without it seeming like it was his fault for neglecting it. Without asking, the answer is already a NO - might as well try
                    Last edited by cp[mike]; 08-15-2017, 06:15 PM.


                    - 1993 Accord LX - White sedan (sold)
                    - 1993 Accord EX - White sedan (wrecked)
                    - 1991 Accord EX - White sedan (sold)
                    - 1990 Accord EX - Grey sedan (sold)
                    - 1993 Accord EX - White sedan (sold)
                    - 1992 Accord EX - White coupe (sold)
                    - 1993 Accord EX - Grey coupe (stolen)
                    - 1993 Accord SE - Gold coupe (sold)
                    Current cars:
                    - 2005 Subaru Legacy GT Wagon - Daily driver
                    - 2004 Chevrolet Express AWD - Camper conversion

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                      #11
                      Thanks for the input guys, that is the sort of advice I was wanting to hear. I guess I just wanted some sort of sounding board / place to rant about because the situation I've been dealing with over the last ten years (horrible renters for the most part).


                      I think the reason he neglected to do anything with this particular property was because of his age. I don't think he was expecting to live all that long after acquiring it, thus the estate (son I believe) would then take care of it, either liquidation or repair. Well that was ten years ago, he is now 92-93...
                      And like you suggested Mike, maybe quick cash would be enough for him to want to unload it. I know if someone offered me a reasonable amount of cash at his age, I'd definitely think twice before turning it down.

                      Best case scenario is that he's willing to negotiate and we can work out some sort of deal.
                      Worst case scenario... well the current renters are/have been the best ones to date... so I guess different tenants would be the worst scenario.


                      I'll let you all know what, if anything, happens.
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                        #12
                        I could contact him and make him such an offensive offer that anything you throw at him will sound amazing, think of it as a real state wingman . For the sake of entertainment I an always huckleberry for helping friends out.
                        [url=https://flic.kr/p/2hFNC7Z]

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                          #13
                          Originally posted by Crankshaft View Post
                          I could contact him and make him such an offensive offer that anything you throw at him will sound amazing, think of it as a real state wingman . For the sake of entertainment I an always huckleberry for helping friends out.
                          That might be a valid approach.

                          Right now I'm just trying to find a valid number for him.
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                            #14
                            Everyone has their price technically. And if he really is 92 then he may want to start offloading some of these properties, especially if his son wants nothing to do with it. At the very least you could give him your info and if he is thinking of selling it then you are first on the list.

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