Her timeline is vague (anywhere from 3 to 18 months), but it's in both our best interests to start to hammer out the eventual price. It's important so that we know if Jordan and I can actually afford to buy her home; because if not, we'll start looking at new builds (townhouses/condos).
it's a bit dark - but here is a picture:
So, our first step was to have a market assessment done. It's actually best if we get two done (us and her) to make sure that it's fair. The real estate agent we found came up with a recommended listing price range of $375,000 to $391,000.
Jordan immediately thought that the number was wayyyy to high. To give you a picture, the house has been lived in for 30 years by two chain smokers (now only one) and hasn't had a single reno/update done. My aunt, when she moves - wants to leave the place as is. Not only is she a smoker, but a bit of a collector (not quite hoarder-style, but she does have a lot of stuff). We anticipate required renovation costs to be between $65-80,000.
Upon going through the report, I've found that the majority of the homes in it have had lots of renovations including: finished basements, hardwood floor, new counter tops, new bathrooms, new kitchens etc. My Aunts doesn't have those things - it needs those things. I've summarize the report he gave us and found 3/29 listings to be close compartitives.
you'll notice right away there's two duplicates. I believe this is because they were listed and failed to see and then listed again at a later date.
So - if you look at the actual comparative homes, there's an average price of about $305K - which is much more reasonable (and actually my first gut response when thinking about how much I would pay was $300K). When we described the report to my grandfather (who has been a general contractor for nearly 40 years, if not longer) he thought about $290,000 sounded good.
Jordan feels that starting at $250,000 (because my aunt loooves to negotiate) would be good and then we can go through the report and suggest she still get her own done.
It gives us a great place to start and we are feeling pretty good about it.
Our next steps include:
- talking to my aunt
- talk about money
- talk about a timeline
- suggesting she get a second market analysis done
- get a bank assessment done
- to find out how much of a mortgage we could actually get for the property
- ramp up our savings