Buying a house on contract?

[mylife]

I want to buy a 4 bdrm, 2 bath, 1200 sq. foot home listed at $44,500. I'm meeting with the real estate agent tomorrow to take a tour of the home and possibly negotiate an offer. In the listing, it mentions nothing about buying the home on contract but I'd like to take a shot at it.

I plan on making an offer of 10% down and 10 year payments. Is there anything I should be wary of when dealing with contract homes? I've always lived in an apt, never had to worry about anything like this.

About the house, it's old, built in 1912. It has hardwood floors, oak staircase, etc. It definitely needs a lot of work. I plan on renting 2 rooms out and fixing it up over the next few years then selling for a profit eventually. It's part of an urban revitalization area so tax benefits are a possibility.

Here's a photo:

 

[BonerBoy]

it looks nice, but it looks alot bigger than 1200 sq ft and $44,500 is cheap for any area

why don't you just cash him out?

 

[bignate73]

$44,500? damn....

a house like that would pull at least 200k here in cali.

i guess its true. "location location location"

 

[mylife]

Sorry, meant to say 2000 sq feet. I'm only 19 so I don't have the kind of funds to pay up front. If I can rent out two rooms to friends I'd essentialy live there for free while making the necessary restorations to turn a profit once it's finally paid for.

Like I said, it needs a lot of work but it has some upside. I'd like to build a new garage (old one needs torn down), new roof, install central air, new paint job in and out, etc.

More pics:

 

[Imnotdutch]

Looks good to me.........in thi scountry to would get a shed for that money I am living in the wrong country!!

 

[MarthaStewart]

Holy shit - that would be craploads more everywhere I've lived...

You must either live in the South, or out in the middle of nowhere.

Either way, good show buying a house at 19.

 

[WODIN]

That staircase is awesome. Yep you live in the middle of nowhere. Great deal!!!

 

[Hengst]

if you buy that house..........

DO NOT PAINT THAT STAIRCASE

In the DC area that house could easily sell for 500K.

 

[Lumberg]

OH MY FUCKING GOD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[2EZ2BRICH]

i echo what Hengst said. Do not pant the stairs under any circumstances. they don't make it like that anymore !


Good Luck !

 

[velvett]

What state do you live in?

 

[velvett]

A few thoughts.


Do not under any circumstance agree to a balloon payment at the end of the contract.

Make sure the house has a clean title - no liens, judgements, back taxes owed, etc. Ask to have a title option done to make sure that the title is indeed clean.

 

[beastboy]

I wouldn't paint any of the woodwork.

For 44,500, I would think you could get approved easily for that without a land contract.

Back to your question.....Land Contracts come down to what you negotiate....terms, length, rate, etc.......If you fault you can lose the house sometimes much easier than through a bank.....all depends on what was negotiated. Who is selling that home...private owner?

 

[velvett]

If you fault you can lose the house sometimes much easier than through a bank.....all depends on what was negotiated. Who is selling that home...private owner?

True true

These contracts often have "forfeiture clause" which basicly means that if the buyer defaults in payments the seller only has to send notice of this and offer 30 days to collect unpaid funds before taking the house back - one can be evicted in as short as 2 weeks.

 

[mylife]

I live in the MW, town of ~110k. The home is located about 10 blocks from downtown.

I met with the realtor today and came up with an offer sheet. (crosses fingers)