Possible 1st Time Deal - Advice Needed
I found a bank owned home that is listed with a realtor. Asking price is $159. House has been on the market over 7 months and the price was just lowered from $179. It was a foreclosure. The tax value is $192 and my agent says the FMV is 8% over that. It is in a nice gated community and most houses sell for $199 to $210. It needs fresh paint and carpet. I think that we could offer a low price and may get it accepted since the bank wants to get rid of it. I hesitate because, if it's such a great deal why has it been on the market so long. Is there something I'm not seeing? Any input is greatly appreciated.
[addsig]
Excellent question...I would ask the realtor why and what is wrong with it to havit sit for so long, and go from there. Does the area home prices warrant the value? What is in that area. it might have set because the realtor didnt market it well. there are a number of factors...I would even, in that case, try and locate the former owners and ask them if there is anything wrong with the house. Good luck...
Lauralee,
Also, ask your agent to pull up the listing history of the property. It may be that the price started out too high and stayed there too long before dropping down. Sometimes when a property is perceived as "stale inventory" that can of itself turn off potential buyers. Everybody's asking the same thing: what's wrong with it if it hasn't sold? I've done that myself.
Also, there might be issues like the bank hardballed in negotiations during the first 30-60 days. See if your agent can find out what, if any, offers had been submitted but didn't pan out. Also, find out if they are making any disclosures about the property based on inspections they had made when they took over the property. In my experience with REO's here, one of the first things they do is have the property inspected.
See if the house has had a Home Inspection done on it. Sometimes a house could be a goldmine but people are afraid to dig.
Sometimes these houses are offered to certain people first like: police, fireman, nurses, teachers, ect. In my area it is called the good neighbor policy. Then when it doesn't sell investors get a chance. But then people think there is something wrong because it didn't sell. I seen one house not sell for a year because of one reason: TITLEWORK, The sheriff's department overlooked something and the seller (OCWEN/BANKONE) couldn't close the deal. The Bank took over the property in 7/2002 but couldn't clear up the deed until 01/2203, my friend signed contract 01/2003, Couldn't take posession until 07/2003 and couldn't get his deed recorded until 10/2003. In the mean time he had an offer, accepted, but couldn't sell the property until 04/2004 because the bank that approved his buyer (who lives in house) didn't like how the title work looked and wanted to wait for six months to have a bringdown to make sure no one slipped anything on property. So it is not always the property that holds up a sale.
Lori
[addsig]
How do you know it has been listed with a realtor. Did you actually see a copy of the MLS printout. It is possible for some reason or another it never made it into the MLS and due to the fact that it is in a gated community, it is getting limited exposure.
I would go talk to the neighbors. Maybe there was a death in the house? Maybe it fell out of escrow several times?
I would go look at it and make an offer.
If you dont ask you wont learn! Then I would call a title company and run a prelim and find out if the title is clear.
Having been in the house selling business since 1995, I have had pretty houses that sat in the middle of the block take 9 month's to sell for now apparent reason and houses in the warzone sell in 1 week. It is a strange
phenomena. So make an offer, do your
homework and if it pans out, you have
yourself a deal.
Best Riches,
Jeff Adam
[addsig]
Thanks everyone. I am seeing the house on Thursday. I'll let you know what I think.
[addsig]