Having trouble thinking this through... thoughts?

odusgolp

As an ex-Realtor and homeowner, I'd say give him a low offer. Don't overpay in your market just because you like this house. There are many houses you will like and it's a buyer's market.

I know you said you had a hard time finding a seller that would agree to your terms, but he really hasn't yet. You set the price. Not the seller.

Here's some considerations... 1. He & his wife, are blessed to have no mortgage on either this property in question, nor their home. They are quite financially sound.

2. The amount I'd pay in rent is the same as I'd pay with the "land contract" or mortgage. However, I would get the tax benefits (as well as any repairs/maintenance) with the latter.

3. If he were to bankrupt (which is honestly EXTREMELY unlikely in the next 18 months), I'd simply press on. I'm not losing really anything as rent would be the same if not more at any place available for a rental.

4. Homes are actually moving relatively well in my area (near Milwaukee, WI). It's definitely still a buyer's market, but you can't low ball quite as much as you could a year ago... That being said, I'm meeting w/ my realtor later (who is simply helping me for free at this point) to get a totally outside opinion on the actual value of the house. I honestly won't pay more than it's worth. That's just... crazy, even if I pay a higher rent somewhere else. I don't want the house THAT bad where I'd be completely dumb. Just slightly dumb

5. He absolutely hasn't agreed to my terms. I haven't put in an official offer - first I want the appraisal and for my carpenter and realtor to look at it with me. Then offer contingent upon inspection, blah blah. We have verbally agreed on a price range of $4,000. It's where we land in that price range... if at all.

6. When the time does come when I can obtain bank financing, I am blessed to work for a "local" private bank that would keep the loan in-house. I'm not sure what will be in my best interested after 18 months, but I'll have to research that all at the time...

I hate the stress of moving, if you can't tell. So thank you for helping me think it all through... If you see holes in my thinking, or other things to consider, please... have at it.

cmriverside

If the house is for sale, you should make your best offer now, all contingent on the inspection. I assume you have an appriaser in the wings to do this appraisal before a P & S agreement? Or is the seller getting an appraisal for his own purposes? Because usually someone has to pay for an appraisal, but if you work for an S & L then maybe you have connections.

Once you move it, even with an inspection done previous, you are going to find stuff wrong. If you think you can live with that without balking, and if you and the seller have an agreement on any repairs that come up after the Lease Option takes affect (you are talking LO, right? Because if you're not, you could explore that option.)

If you are purchasing outright and the seller is carrying the contract, whole nuther ball game. If you are puchasing outright and you plan on your employer carrying the loan, which is what it sounds like, then make the low offer anyway. He can counter your offer. You can go back and forth on the fine points of the agreement as much as you both want.

I guess I'm not clear as to which option (financing) you are seriously thinking of, because you've described three different scenarios in part.

cmriverside

Once you move it, even with an inspection done previous

Once you move IN