Week 7 Exercise - Negotiating Offers
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School
Irvine Valley College *
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Course
RE170
Subject
Law
Date
Jan 9, 2024
Type
Pages
3
Uploaded by MegaPowerCaribou28
Choose a property you would like to purchase as your first choice. It can be a/an Single
Family Residence, Apartment, retail strip mall, etc. You can use public websites to find
this information, Zillow, redfin, realtor.com, etc.
1-Give some information and a screenshot about this
purchase property
, what you like
about it and where you found it. Don't just copy/paste from a website, but explain why
you want to buy it, what is your goal for the property, etc.
-
I would love to have a starter home near my place of work that can later turn into
a rental property for me. I will be working in Irvine and this home is large enough
that I can live in. However, I consider this more of a starter home and plan to
move out of this property. It is quite close to UCI and can definitely be a great
property to place on rent for college students. Also, my sisters work in Irvine, so
for the time being I would love to share the home with them which will cut down
costs as we can share the mortgage. I like the proximity it has to a shopping
center and how it is near my place of work.
Using one of these online sources (mentioned above), find 2 similar,
alternate
properties
for sale (active or in escrow, not closed) and answer the following questions.
If these were closed/sold properties, we would call them "comps" for price opinion
purposes. For this assignment, we are looking at available properties.
2-Give some information about the 2
alternate properties
and how they are different
from the
purchase property.
-
-
-
These 2 properties are different from the purchase property for several reasons.
Both properties are slightly more expensive, and in return, they are larger homes.
They are in relatively similar areas to the original purchase property. They have
great value as Irvine is a costly area to live in. Both of these properties are open
and have not been sold/closed. Therefore, they are perfect comps as they reflect
a similar amount of bedrooms and bathrooms.
3-What price would you offer the seller of your
purchase purchase
property?
Comparing your other two
alternate properties
, give some specific reasons why you
are offering this price on your
purchase property
.
-
Given the comps and by looking at the pricing of surrounding homes, I would
offer $910,000, which is $10,000 above asking because this is a very competitive
area of Irvine, where average homes go around 1% above list price. I would like
to lowball the offer, however, many offers will not be considered as most offers
are above asking. Also, I will offer a short inspection time and a sizeable down
payment.
4-With information about your
purchase property
and
alternates
, list any
contingencies or options you would include in your offer/purchase agreement. Maybe
your purchase property needs repairs or there's a concern about the tenants that live
there? Maybe it doesn't have certain features that exist in the alternates? Do you want a
lower price, the seller to fix anything, or would you prefer a credit to do the repairs
yourself?
-
To ensure a comprehensive approach, my first move would be introducing an
inspection contingency. This acts as a safeguard by examining the purchase
property for any hidden surprises assessing the solidity of the foundation, the
efficiency of pipes, and the overall condition of the roof. In the event of
unforeseen issues, this contingency provides the necessary leeway for
negotiations and repairs or a potential reduction in the price. Considering the
presence of tenants, a tenant contingency would be woven into the offer. This
contingency functions as a means to assess the current rapport with occupants
and to unearth any potential lease complications. Understanding the dynamics of
the tenant landscape is integral to navigating the transaction smoothly.
-
I would also like to know if the HOA allows me to rent the property or possibly
allow subleasing.
*Note, if you want to purchase this property you will have to be reasonable on the price
and terms while trying to get what you want. An offer of $1,000 would simply be
rejected. Think of this as a realistic purchase scenario where the information you learn
and the data you have can you help you in your negotiations of the purchase property.
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