Mold Condo- REO Advice
Condo that sits on 2 levels 3 beds/1 1/2 baths. I can get it for 50k. It's a bank REO that was priced at 65k and was just reduced (mls listing doesn't reflect the price change yet).
In the lower level near the bottom of the walls there's some black stuff that seems scrubable. Other than that it just needs some new carpeting and work in baths/kitchen.
The problem is that it's kind of hard to comp. Not a lot of condos in the area, only a few over a mile away. It looks like it may be in the 100k-120k range.
I'm just wondering if you guys think this is a lemon? Everything I'm reading says REO's aren't deals. That most of the time they are priced at market level. It makes me suspicious that there's something missing. Does anyone have experience like this with REO property? Do they suddenly reduce property way below market value just to sell off?
Ask the broker to provide market data in support of the asking price.
Employing a short sale technique, prepare a compelling Proposal to accompany an offer to purchase the condo at what you feel is an acceptable price.
Most of the best REO's are snatched up by the realtors and their buddies as soon as they hit the market but you can find some good deals from time to time.
I would write a contract contingent on inspections and get a whole house done. Additionally, 1 mile is pretty close for comps, so they should work for your needs. It SOUNDS like a good deal, just check everything very closely.
[addsig]
hi there...Mold in my area of NJ is a deal killer...have a mold inspection that may be a lift tape test where a sample is taken of a small area of the black stuff, sent for analysis and a report is generated $290.oo...then call for remediation estimates...a 1100sqft house was in the area of 4K...they dry the space with dehumidifiers and fans remove insulation and sheetrock, treate the area, rerock and give you a 1yr warranty....here is the rub, once mold is documented by a registered inspector it is a matter of record and has to be disclosed to you and the current seller...this is a two edge blade...you can offer less or bail out of the deal but the seller is stuck with a documented mold problem....also you are required to indicate it had a problem in your disclousure statement when you sell...what happens if it is a wet season and the drainage problem or leak that caused th mold to grow is not fixed and it comes back after the 1yr....you are in the same fix as the current seller.....if it is drainage it will be much harder to fix in a condo than a SF home....good luck, do your homework....mold killed two of my deals after a home inspection and mold inspection....better to invest some money up front $$$$$$