Reasonable Price??

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sejinro_IHB

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Came across this website, love the analysis, discussion and wealth of information. I am in a situation though, due to job relocation, to find a home in OC area. I suppose I can rent but there is an opportunity (from family) to purchase a home in Irvine.

3 bed, 2.5 bath, 1400 sq feet, condo, 2 car garage

I am thinking 350K to 400K?
 
Zip shows two 3br condos under $400k for all of Irvine. One is 1000sq ft and appears to have no garage, the other is 1100sq ft with a one car garage.

for $429k you can get a little closer to your potential unit, but it's not clear if the garage is one car or two. Meeting your specs will set you back about $500k right now.

This is why we rent.
 
As I read this, it sounds like you have a family member willing to sell you a place with those specs for $350-$400K? Correct me if I misinterpret. If that is the case and the place suits you, I'd say go for it. As eff said above, asking price for something like that right now is minimum $500k - $600k+ depending on the neighborhood.
 
Thanks so far for the comments. I am not sure, at this point, if my relative would be willing to sell between 350-400K. An opportunity was offered but no price discussions. I want to provide an offer without making anybody feel bad as this is not a blood relative but someone through marriage. At the same time, it is still family and the price has to make sense for both parties.

I guess I am asking the question what all of you, as very informed renters/buyers, would pay for such a condo. Further, keep in mind, that I have a family so moving in about 5 years or so would is a possibility to a detache residence. So, I am hoping whatever price would create an equity situation.
 
To answer your question, $250 sq ft is my number (others may disagree). So $350k is what I would pay for a 1400 sq ft condo --- unless there was a promise of eternal youth written into the contract, at which point I might go to $375k. Anything more than that, visit www.rental-living.com
 
I've always been of the belief that if you are moving to a new area, you have no business buying yet. Get acclimated with the area first, then find which area of Irvine you'd like to buy. Rushing in to buy is what got people in trouble. I moved from Costa Mesa to Irvine (I know it's not very far) 2 years ago, and I am still learning of new places to eat, hangout, bike, exercise, etc. Rent a place for at least 12 months.
 
I am sure your relatives are wonderful, and have you considered their motivation for selling. OC real estate is a depreciating market.
 
I thought sejinro meant the family is going to help him purchase a home, with a downpayment possibly? I guess I didn't read carefully enough. If you can get that property for 350k, sejinro, you may want to buy it.

If you are worried about offending them by a low-ball offer, just play dumb. Tell them you "can only afford" 350k and see what they say. If they react by saying..."I'm sorry but I can probably sell for 450k in the open market right now"...you'll know where you stand. You can play it off by assuming to be new and naive to the irvine housing market!
 
I am not necessarily new to the area, I went to UCI for both undergrad and grad school but I am new to the real estate aspect of Irvine. Renting was my original option and may still be until this opportunity came up. I have the downpayment but I suppose I more concerned with the ability to have some equity in about 5 years or so. It would be too bad to buy at 350 then it still be worth 350 in 2012/2013. Thoughts here?

Also, playing dumb seems like a good strategy by just stating that all I can afford is 350 then take it from there. On the other hand, this is my relative so I am not to excited with wheeling and dealing with someone as such. Renting seems more like the safest route without burning anyone and having to deal with thinking I owe something to someone.
 
"An opportunity was offered but no price discussions."

awgee was alluding to this problem... Don't become a bagholder to bail out a family member. IMO, there is nothing good that can come of this transaction. If the property declines in value (which it will) you will feel like you were ripped off (which you would be.) If the property goes up in value, then your relatives will be upset that they did not make the money. Never enter into a financial transaction with a friend or a family member. Very little good can come from it, and a lifetime of ill will can develop.
 
IMO - If the property would sell for $450,000 tomorrow, it will sell for $150,000 in 2012 in inflation adjusted dollars.
 
IR,

My mother and her son-in-law learned that lesson the hard way, and my sister is still caught in the middle... 7 years later. She agreed to buy his latest flip when she moved to their town, the appraiser came in way under his asking price, the bank refused to make the loan, and my mom walked away from the deal. They haven't spoken 3 words to other since that day.

sejinro, invest your money elsewhere for the short-term, and thank your relatives for the offer when you decline to buy their house. Your life will be happier in the end.
 
The only way I'm doing business with family on this sort of level is if somebody's giving me/I am giving somebody a property - free and clear, with no strings attached.

If you hate your relationship with your family and get a chance to &$%@ somebody in the process of really poisioning the well forever, there you go.
 
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