May 4, 201214 yr ^Here's my scenario...a house just went on the market listed at $141,900. It's bank owned, was purchased back in 2003 for $180,000 and is valued at $199,500. Would I really be stupid (as plantmanky suggests) if I offered list price? :idunno: If the house is truly worth $199,500 then you are definitely getting a good deal at the asking price. I would be very weary of the $199,500 though. If the house was worth $180,000 in 2003 I would be surprised if it was worth more then that now. Either way it's worth the $141,900. If you make the offer make sure you make it contingent on an inspection. Leave yourself an out if the inspection comes back with lots of bad news. Even if it is being sold as is, which every bank sell will be, they should still allow you an inspection. Back to the value, the best way to get a good estimate of the value is to check what other similar house have sold for in the last 6-12 months. Don't go by what people are asking.
May 4, 201214 yr The 199,500 is only a taxed at value NOT worth. It has no basis in any reality in the current market.
May 4, 201214 yr Banks get low balled all the time, don't worry about offended them. If it is a crazy low ball offer, the real estate agent most likely will tell you that is not even close. Like HT said they most often lose money, they just want to sell quickly and minimize their losses.
May 4, 201214 yr ^Here's my scenario...a house just went on the market listed at $141,900. It's bank owned, was purchased back in 2003 for $180,000 and is valued at $199,500. Would I really be stupid (as plantmanky suggests) if I offered list price? :idunno: You want a bona-fide offer (in writing, from an agent) given to them with a specific timeframe like 48 - 72 hours or 2 or 3 business days. Put the standard contingency that it is dependent on financiing approval. But you can put other contingencies in if you want - appraisal value, interior condition. If they have multiple offers you may be in competition and not know it. Other offers could be higher with less contingencies. If so, they would likely favor those offers. Unless you are paying your agent as a buyer agent then remember they represent the bank as that is who pays their commission. But agents are deal makers. If there other buyers (and thus other agents) the agent should help guide you to close the deal if it is a win-win. Good luck.
May 4, 201214 yr You want a bona-fide offer (in writing, from an agent) given to them with a specific timeframe like 48 - 72 hours or 2 or 3 business days. Put the standard contingency that it is dependent on financiing approval. But you can put other contingencies in if you want - appraisal value, interior condition. If they have multiple offers you may be in competition and not know it. Other offers could be higher with less contingencies. If so, they would likely favor those offers. Unless you are paying your agent as a buyer agent then remember they represent the bank as that is who pays their commission. But agents are deal makers. If there other buyers (and thus other agents) the agent should help guide you to close the deal if it is a win-win. Good luck. Wrong on both counts. if you dont use the listing agent they are representing only you however the listing agent may be much more help about what % of list price you need to draw a counter based on DOM. Defined time frame yes, short time frame NO as banks use automated systems and a short expiration date can cause you offer to expire in the system before it is even looked at, specially over a weekend. A common mistake of bank owned buyers.
May 15, 201214 yr Author Nope. The place was disgusting. Holes punched in the walls, carpets ruined, doors and shelfing ripped off the walls, etc. The dude who owned the house was part of the Duke Copper scandal and is in jail apparantly and just trashed the place before he left.
May 15, 201214 yr Nope. The place was disgusting. Holes punched in the walls, carpets ruined, doors and shelfing ripped off the walls, etc. The dude who owned the house was part of the Duke Copper scandal and is in jail apparently and just trashed the place before he left. Yeah, sometime that is the case in a house like that. Good luck on the search.
May 15, 201214 yr Glad you looked into it first, thats the thing with this houses. A few years ago I drove by a property that a guy at the bank gave me a hint about, front door was wide open, I had a friend with me so we just walked around and looked in, entire house had most of the drywall ripped off the walls, wires and pipes gutted out, they took the everything but the structure.
May 15, 201214 yr Nope. The place was disgusting. Holes punched in the walls, carpets ruined, doors and shelfing ripped off the walls, etc. The dude who owned the house was part of the Duke Copper scandal and is in jail apparantly and just trashed the place before he left. Most of that is cosmetic. As long as there is no foundation, structural, plumbing, and electrical damage the cosmetic stuff can be fixed without too much expense or trouble. You definitely have to get the house cheap though. Good luck in your search.
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