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hambone1985 | Purchasing house....how to make an offer? |
My husband and I are purchasing our first home. It is 1 story, slab-not basement, 3 bedroom, kitchen, living room, attached garage, and medium sized fenced yard with shed. It is siding with some kind of stone on the front...but I wouldn't consider it bricked. They are asking 59,900 and I would have guessed a house like that in decent condition in that area would cost 65,000-70,000. It was a foreclosure. They left no appliances. It needs a good chunk of work, though it is livable. Carpet is from 80s, paint is a must...walls are marked up, cabinets are way out dated, and somehave been ripped out, the tub has a very old fashioned shower head hooked up. The doors are a little marked and dinged some with holes. What is a reasonable offer? 50? 55?
Additional Details
ohh, and it has been on the market for a while and in my area the market is a little slow |
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darrin_carey
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First, always have a real estate agent when dealing with foreclosures.
Since you are going to live there, pay no more than 80% of the conservative value after repairs are done, including the cost of repairs. (get 3 estimates during inspection period.)
So, 65,000*80% = 52,000.
subtract repairs (based on estimates. I'll use 10K).
52,000 - 10,000 = 42,000
42,000 is the maximum to pay. |
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Blue October
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short answer is ---you need to be working with a licensed real estate agent to make sure that everything is done correctly and legally. they can also tell you what you should offer - because they know what the current market today will bear.
good luck :) |
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Great Scott
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No appliances? Ripped out cabinets? Thats almost 10 grand right there...this is a major fixer-upper. I'd offer 42,500 and walk away if they don't accept. |
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onlinejobsforall.com
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better to consult a realtor or check out at following site http://realestatepropertynews.com/purchase-a-new-house.html |
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chickem
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My first house was a foreclosure & here is how I did it. They wanted a certain amount & I met with the realtor & offered an amount about 6000 less than the asking price. Well the realtor met me & said they turned that down but would come down 2000. I turned that down then offered 3000 less. They finally accepted with a couple of extras thrown in. You can bargain with these foreclosure banks...dont hurt to try it. Start low though. Make them pay for the title search also. Good luck. |
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jjdriskel
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Hire a Realtor to help you out, if you don't already have one. We are trained on how to negotiate deals for people. The seller pays the Realtor, not you.
If the market is slow in your area, and the house has been on the market for a long time, you maybe able to get the house for a little less. Personally, I would offer $45K and see if the owner/bank counter offer. |
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ted f
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i would ask 40-45 if the home is in decent condition once you have given them a low offer they will send a counter offer
like you said decent condition they will counter and youll know where you stand you can always go up !
avoid agents go to zillow.com to get an estimate if you go to an agent they will want 3-6% fee
why
zillow.com you can enter the address and get an aprox value
its the best bet the title company will protect your interest as far as title to the home. you can get your own inspection done by a professonal to make sure the home has no defects that can't be easily resolved |
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Monika Wilson
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sounds like you are buying a whole lot of work.
You might want to ask a local Realtor for assistance? The Realtor can run some comparable for you and check out how much homes in this area in similar conditions were sold for. The Realtor can also check into prices for just land in similar size in the area.
May be you have a friend who knows something about remodeling and the remodeling costs. And i strongly would suggest, have a home inspection done. Have the roof checked for leaks, check for termites, check the plumbing, check the electric. You can probably deal with all the cleaning and cosmetic work but if there is something major wrong, that can be tuff. If you are going for financing, most likely the lender will require this inspection anyway.
When you have all the information you will pretty much see very clear what a fair amount to offer would be. But here as well, have a local Realtor help you to write the offer.
And then go for it. You will feel so great to buy and live in your very first Home. |
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