We are interested in purchasing a home in Delta, PA. (a small agricultural town in southern York Co.) Based on the local market, median home prices and comps from the past 6 months, we feel that the property is overpriced. We have made what we consider a very fair offer...but the sellers disagree.
Through researching public records etc, I have found that the home was built in 1994 (although the listing shows that it was built in 1996), and purchased by the current owners in March 2002 for $393,000. The home is a 1 1/2 story with 3 bedrooms, LR, DR, Kit and 2.5 baths above ground. There is also a sunroom w/no heat or air that has been included in the SF. (There is a bedroom that once was 2 separate bedrooms, but they removed a closet and part of a wall to turn it into 1 large room.) So, there is a total of 6 rooms above ground level although the listing states it has 12 rooms, (including 5 BR, 3.5 Bath). (Is this kosher?)
It is my understanding that only above ground rooms may be counted for the actual SF ( and the finished basement may only be considered extra living space - below ground level). I have also had appraisers tell me during the sales of other homes that I have owned, that the "florida room/sun room" cannot be included in the SF or considered as a "room" on the above ground level if it does not have heat or air. Is this correct?
On the lower level there are 2 small rooms that may be considered "bedrooms", but they are in the basement and do not have closets. (Thus negating the possibility of being a bedroom?) There is also a full bath and 3 more living areas in the lower level.
The house is presently vacant (5 1/2 months) and needs some work. (cleaning, painting and replacement of carpet in the whole house, as well as cedar siding repair on both sides of the house.)
The owners had a home equity appraisal done a year ago and are basing the market value and expected sale price of their home on that. (??) (My understanding was that home equity appraisals are usually much higher and less accurate. (can you explain to me what the difference is in the two types of appraisals?) They've had the house on the market since June 2007 and have only reduced their price once, in Aug. 2007. Much has changed since then!!
After we made our offer, the seller's realtor informed us that the owner disregarded our offer because they are expecting to get a 90% return on their investment for a pole barn (including electric, excavation & stonework (to handle the weight of the vehicles), stalls, 3-board fence and blacktop) to the tune of $114,700.00! The pole barn was erected for the owner's semi-truck and dump truck to be stored for his business. Unless they find another truck driver to purchase this home, this pole barn is basically functionally obsolete to the average joe like me!! (This improvement was extremely owner specific and, in my opinion, very much of an overimprovement for this community!) (The median home sales that I could find were within the $150 to $200 range. They originally listed at $685 - according to the equity loan appraisal, but came down to $550 in 8/07.) Could you tell me how realistic these rate of return numbers are? They are also expecting a 50% rate of return on an above ground pool, decking, gazebo and hot tub -- to the tune of $15,000. (I know that we took a hit when we sold a home w/a pool, and that the pool and decking would be considered personal property...not real estate. Is that true?
The home is situated on 5 acres, in a subdivision where the homes range from 1 -3 acres. The only other comp that my realtor or I could find in the neighborhood was for $285. My lender will only consider comps from 3 months back...and there is nothing even close in a 15 mile radius. We really would like to purchase the home, and have offered $400. What would you recommend that we do at this point? Are we accurate with our understanding of the rate of return issues, and appraisal issues? Please help enlighten us!!!!! (Our kids are ready to move!!!!!!!!!!!!!!!!) Thanks a ton!!
Mary E.
Through researching public records etc, I have found that the home was built in 1994 (although the listing shows that it was built in 1996), and purchased by the current owners in March 2002 for $393,000. The home is a 1 1/2 story with 3 bedrooms, LR, DR, Kit and 2.5 baths above ground. There is also a sunroom w/no heat or air that has been included in the SF. (There is a bedroom that once was 2 separate bedrooms, but they removed a closet and part of a wall to turn it into 1 large room.) So, there is a total of 6 rooms above ground level although the listing states it has 12 rooms, (including 5 BR, 3.5 Bath). (Is this kosher?)
It is my understanding that only above ground rooms may be counted for the actual SF ( and the finished basement may only be considered extra living space - below ground level). I have also had appraisers tell me during the sales of other homes that I have owned, that the "florida room/sun room" cannot be included in the SF or considered as a "room" on the above ground level if it does not have heat or air. Is this correct?
On the lower level there are 2 small rooms that may be considered "bedrooms", but they are in the basement and do not have closets. (Thus negating the possibility of being a bedroom?) There is also a full bath and 3 more living areas in the lower level.
The house is presently vacant (5 1/2 months) and needs some work. (cleaning, painting and replacement of carpet in the whole house, as well as cedar siding repair on both sides of the house.)
The owners had a home equity appraisal done a year ago and are basing the market value and expected sale price of their home on that. (??) (My understanding was that home equity appraisals are usually much higher and less accurate. (can you explain to me what the difference is in the two types of appraisals?) They've had the house on the market since June 2007 and have only reduced their price once, in Aug. 2007. Much has changed since then!!
After we made our offer, the seller's realtor informed us that the owner disregarded our offer because they are expecting to get a 90% return on their investment for a pole barn (including electric, excavation & stonework (to handle the weight of the vehicles), stalls, 3-board fence and blacktop) to the tune of $114,700.00! The pole barn was erected for the owner's semi-truck and dump truck to be stored for his business. Unless they find another truck driver to purchase this home, this pole barn is basically functionally obsolete to the average joe like me!! (This improvement was extremely owner specific and, in my opinion, very much of an overimprovement for this community!) (The median home sales that I could find were within the $150 to $200 range. They originally listed at $685 - according to the equity loan appraisal, but came down to $550 in 8/07.) Could you tell me how realistic these rate of return numbers are? They are also expecting a 50% rate of return on an above ground pool, decking, gazebo and hot tub -- to the tune of $15,000. (I know that we took a hit when we sold a home w/a pool, and that the pool and decking would be considered personal property...not real estate. Is that true?
The home is situated on 5 acres, in a subdivision where the homes range from 1 -3 acres. The only other comp that my realtor or I could find in the neighborhood was for $285. My lender will only consider comps from 3 months back...and there is nothing even close in a 15 mile radius. We really would like to purchase the home, and have offered $400. What would you recommend that we do at this point? Are we accurate with our understanding of the rate of return issues, and appraisal issues? Please help enlighten us!!!!! (Our kids are ready to move!!!!!!!!!!!!!!!!) Thanks a ton!!
Mary E.
