From the Forum: Is This Deal on a House for Sale Too Good to Be True?
A Brownstoner reader is helping friends buy a home in Brooklyn. They found a place they like, but something seems off. She writes: They want to put an offer in on a home near ours but something seems off to me. The property was listing in January for one price, three months later reduced by…
A Brownstoner reader is helping friends buy a home in Brooklyn. They found a place they like, but something seems off. She writes:
They want to put an offer in on a home near ours but something seems off to me. The property was listing in January for one price, three months later reduced by 150k then taken off the market, switched brokers and now listed for $200k less. To us the house looks like it’s in good condition and has been well maintained, no glaring issues. It’s one of the least expensive renovated (but with original details) homes in the area and it seems the owners are eager to move. What questions can they ask the brokers or what advice can any of your provide prior to them making an offer? I would love for them to get a great deal but this seems a little too good to be true.
Can you guess? Brownstoner readers know: Turns out the house may be an SRO and may also have a leaking oil tank that could require expensive cleanup. Click through to read more.
Photo via Structure Tech 1
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Oof, I just saw the click through link and that there are big problems. Never mind all I said! Except for what can be gleaned for other situations.
It’s possible the sellers received an offer but when the inspection was performed by the potential buyer something significant was found and the buyers backed out. But another scenario is the sellers inherited the house fully paid for, did a cheap reno to make it sell, and just want to get their money. In cities where buyers’ brokers are used that’s the kind of information they can get. My buyer’s broker in another state did just that for me in learning there were several offers but the sellers wanted their money fast so when we offered cash we didn’t go over asking to compete with other offers, we said take it or leave it, you can have the check today. And they took it. Can you look up exactly who the owners are and the history? If the cheap reno was done by a flipper who bought it recently then walk away. This is the important part – if your friends do make an offer then offer even less than asking because plainly the sellers are motivated. And get a really good inspector.