Buying A Home
Dear Community,
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Offering on a Foreclosure
We are going to take a look at a home this evening and there is a good chance we will be putting an offer in on the house. It is currently bank owned. Obviously I want to get it for the best price that I can. The property looks to be in good shape, although appliances were recently stolen from the home as it is sitting vacant. It also probably needs a new AC and some gutter work on the home as well as the outbuilding. Would I be insane to offer 25,000 less than the bank is asking? We would be looking to pay cash.
Re: Offering on a Foreclosure
From what I've seen (at least around me), foreclosures are typically priced so the bank makes their money back and that's it. They're not actually making a profit, so there's not really room for negotiations or repairs.
For example, there's a foreclosure priced at $85k in my neighborhood. That's what is owed on the mortgage. Just principal, they're already losing what the owners would have paid in interest. They need $85k to break even. So the house sits...
What does your realtor think?
http://pandce.proboards.com/index.cgi#general
We bought a foreclosure last February. It was listed at $34,900, we offered $28k. We ended up getting it for $27,700. (Re-negotiated another $300 off after my dad inspected it.) It's now worth about $55,000. Yay.
Anyway, there is usually always room to negotiate.
We put an offer on another house yesterday. List again was $34,900. We offered $32,000 with 3% back at closing. We're hoping to hear back by the end of the week. I don't think the bank is going to be willing to negotiate on this house. I guess we'll find out.
Sweet. They don't so much around here.
Foreclosures are typically priced right at what was owed. You might be able to get closing costs out of them, but that's it.
http://pandce.proboards.com/index.cgi#general
a percentage would probably be more helpful, but even then, we don't know your market. ask your agent what is usual for your market.
for example, $25k below asking on a $100k house is 25%. that's pretty insultingly low in most markets. 25k below asking on a $1 million is 2.5%, which is definitely reasonable to ask.
also, i am
that there are places where you can buy a house for 5 figures. but i would never trade where we live, HCOL and all.
My Valentine Bookends (2~13~13, 2~15~09)
Our market has faired better than most, although it did take a hit with the ecomoic downturn. The price for this home is totally fair, but I know that the other offers are also lowballing the bank. Some of our clients make their living flipping these properties and what they pay for them makes me want to cry. The home would still be firmly in the 6 figure range even if i subtracted the 25,000 off of it. I just want some of the action, lol.
Are you planning on living in it or flipping it?
My Valentine Bookends (2~13~13, 2~15~09)
Each market varies for this. I've looked at a lot of foreclosures in my area and with every single one I've verified with county info, the house is listed for insanely less then the principal on the old mortgage. The most recent one I looked up is listed for $83K and the foreclosed mortgage was $277K. I imagine that bank just wants to unload the house because they're already losing tons of money.
We bought a foreclosure. The home had last sold for about 399. It was listed for 269, we agreed on 238. Then they tore out the rotted deck without asking us, so because that changed the footprint of the house, we were able to negotiate another 5k off, bringing the grand total to 233. We got a pretty good deal - houses on the street with the exact same floor plan are still selling for over 300.
It really depends on how desperate the bank is to sell. This house had been vacant for two years. I guess they figured that the 35K they took off the top outweighed the possibility that it could be vacant for another two years. Besides the opportunity cost of having a house when they'd rather have cash, the bank was also shelling out for insurance, 1,000 per month in taxes, and lawn care.
Cortlandt Place - My house blog
Ok, so the bank countered at $34k + 3% back at closing. Not much negotiating on their part. Hehe. We accepted anyway.
Good luck OP!
We purchased a bank owned home two and a half years ago.
We offered about 5% under asking and after a couple of counters we agreed on a few thousand higher than that (still rounds to roughly 5% below list, given the original price). So there was room for negotiation in the price.
There was NO negotiation at all, however, about the condition of the home. Even when non-functional plumbing meant a full inspection was impossible and our lender threatened to walk, the bank refused to make any repairs. If not for help from our broker we would not have been able to close. We had a lot of repairs to do right away, but we knew about all of them and had calculated our offer accordingly so that wasn't a big deal to us.