I'm not sure. She owes $58,000 and said it was appraised for the asking price, if that helps. I do plan to get an inspector. I guess I would have to pay for that right?
Have you seen the appraisal? If not, ask for a copy.
What county are you in?
Okay I will. Once it's confirmed then what?
Then get an appraisal - to make sure of what your getting. I would get the appraisal before I signed the lease option.
This property and the owner are probably on the up and up. However, I have seen to many of these that the owner gives a "deal" to the tenant/buyer knowing that they not inspect the property - selling them real problems - that they can't possibly afford to correct.
After the inspection comes in and you get a copy of the appraisal - that everything looks good.
Are you sure that you can qualify for a loan to pay the balance in 3 years?
You need to know then what potentially is wrong with the place - that's usual "as is" which makes me pause.
You also need to be able to get an extension of time in case you don't qualify in 3 years - like another 3 years. After 6 years - you should be able to qualify and have enough equity.
After those couple of things - I think you'll be alright. But you need to know and have the property inspected.
I would also ask that she sign a disclosure statement - that's just in case there's something that she knows and isn't informing you of. You can pick up a disclosure statement at a real estate office.
One more question. Hypothetically speaking, if all clears in my favor, should I still consider negotiating a lower price on the house and if so, is taking $10,000 off pushing it?
What county is this in? Do you know if your county has a property tax assessment website?
Yes, Philadelphia has a property tax assessment website that you can review. You can review what comparables they used, the assessed value of the property, and their owner's tax payment history.
That's one more thing - you should get a title search performed to make sure there are no surprises.
Okay, I most certainly will!!!
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).