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Lisa Ostrander's Advice

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  • 3 Contributions
  • 0 Best Answers
  • 2 Helpful

Lisa Ostrander wrote:

Can I buy a very affordable place now, and in a few months rent it out and buy my dreamhouse.

Answer
Renting is a waste of money, if you have the credit to purchase a home, do so.  Consider doing a multifamily, perhaps only a 2 family for manageability purposes. Since you are already living in an apartment, why not live in your own while renting out the other half to bring in income to pay part or a majority of the mortgage. Then when you are ready, you can use your 2 family as in income property to assist you in purchasing your dream home, you will also have good established credit to purchase. Many of my first time homes buyers have done this and a few years later were able to use their multifamily as leverage to move up and buy their dream home. Investing in real estate if done correctly is a very prudent move.  Make sure you hire an experienced buyer's agent who is well versed in profit and loss for multifamily whether a 2, 3, or 4 unit to make sure you are getting a good deal and investing wisely.
December 06 2011
(1)

i bought my house for close to a million and zillows information is completely incorrect -573, 000

Answer
Unfortunately zillow estimates are still not very accurate, I have complained about this for years. Zillow has been working on it but to no avail. Generally they take sales near your home without accurate comparison. If you are the most expensive home on your street and let's say a few others had recently sold there, they would use them to compare even if they are not a true comparison (ie maybe a 4000 sq ft home and 2  2000 sq ft homes) this would not be a true representation of homes sold so estimating your home would be inaccurate based on those sales.  As realtor and appraiser, we would use the MLS for accurate comparison, size, sqft, style, rooms, baths, etc..Zestimates are generally inaccurate and mostly used by people curious about what their home is worth. The only way to have an accurate value is to hire a professional to do the research properly.
December 06 2011
(1)

Would offering $20,000 less than listed price be an insult to the seller?

Answer
All of the agents have commented well. As a buyer's agent I would pull comparables to check what similar properties sold for, therefore when you submit your offer you can use those to help explain why you offered so much less. If the sold comparables are much higher than your offer, you can use those instead when you come back in at a higher price during negations to support your offer then.  Usually homes are priced higher than they are worth, you have to first determine what how far off the list price the home is. I always tell my agent you can always try an offer it is better than not trying. However, if the home is listed well (which is rare) than you are going to come up well above your low ball offer and potentially risk offending a seller. Make sure your buyer agent is prepared to explain to the listing agent why you are coming in so much lower (especially if you are going in at the 65-80K).
December 06 2011
(0)
 
 
 
 
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