just got finished with a 3 month battle to get a condo. Original price was 115. I got it down to 87 due to its condition. Appraised at 118 by Frost but then they denied the loan due to a cash payout master insurance. The seller and agent didn’t want to give up and recommended owner financing. I ended up agreed if the price was dropped. Next thing I know it’s the owners son who lends mortgages becoming my new lender at some weird rate. He wanted 800 a month at 8% interest until payed off. When my bank originally planned for 400 a month with 5.5% 30 yrs.I declined and we terminated the contract. As they still wanted to sell it asap to get out of their mortgage they went down to a price of 75k at 600 a month with 6% interest until payed off fully. ≈7yrs On one hand. I just single handedly negotiated a condo appraised at 118 down to 75k in DFW tx. with my total bills being 300 less than it’s rental value. But on the other hand I’ll be completely poor as I had to put a high amount down to lower the price so they can pay off their mortgagw. it’s a piece of work with bad master insurance and hoa and some schetchy financing from the owners son. Title is reviewing everything before we close this week. I’m happy it’s over. But am I lucky or stupid fr. Just seeking honest opinions I’m probably moving in either way.
$75k for a condo? I haven’t seen this kind of prices where I live since Reagan was president.
It’s a great deal… the only thing that worries me if you want to sell it in the future… only being able to sell without a conventional mortgage is going to prevent it from getting top dollar
It’s that cheap because you can’t get a normal mortgage from a real, regulated lender. The technical term is “non-warrantable.”
I remember reading an article about some retired mature woman in Houston buying a condo for $225K in Houston in the early '80s (before the big oil bust of that era), and how its value tanking to $75K was so bad for her plans to eventually retire to Florida. I’m like, “$225K for a condo in Houston” - stupid is, stupid does.
Anyone else wondering if there’s some massive undisclosed assessment coming from the HOA that the seller didn’t disclose?
Why are they so desperate to unload this property? How do the HOAs finances look? What are the reserves? Any planned upcoming special assessments?
They just had some huge assessments for foundation repair and water pipe bursts. Seller owes the hoa money that the sale will help pay. The seller is an older lady who’s stuck with 30k left at 7% and 1k+ hoa dues. If she had the time she can definitely get more from the place as the same units sold for 90-110 in the last couple years. I talked to hoa board members and they have plans on repainting and fixing a roof. They are increasing the hoa and taking water out of it so they can afford future repairs. Because apparently their Reserves were depleted. Sounds like they got the worst of it this year and a lot of people are selling. Risky decision for me but I feel like I’m gonna help bring the curve back up.