Bank Forclosure-buying Help Needed
I am looking to buy a 2 yr new home and found a "need to sell" ad. After talking with the realtor he said this property is a bank forclosure. It is listed at 164,900 and according to the realtor it appraised at 174,000.
Is it a good idea to try and purchase this home. If its a bank forclosure can i negotiate the price?
The realtor wants to connect me with his mortgage broker, but with a foreclosure dont i deal with the bank?
?????? :-? :-? :-?
Hi DATIANA,
The Property is listed for $164,900 and is appraised for $174,000.
Based on this you have a difference of $9,100. This is not enough spread for most investors.
I would suggest that you find out what the true market value is, because normally appraised value does not provided true market value (what the home would sell for on the open market).
I would also as an investor want to know how long it has been on the market?
You can negotiate the price on any home you purchase, but the key is to get your offer accepted!
I would suggest more research to determine what amount the lender foreclosed on for.
If the property is listed with a realtor or broker you will have to go through them in dealing with the subject property.
[addsig]
Keep in mind that there is a big difference in the realtor's listing comparables, sales comparables and a true appraisal. Many realtors will talk about the appraisal price without telling you how old the appraisal is, whether it was just a "drive-by", or if it was in fact a certified appraisal in the first place.
Also keep in mind that Fair Market Value does not necessarily equal appraisal price. Appraisers work in context of a specific request, and the values can be different than FMV.
You can ALWAYS negotiate price, but regional differences are important. In some areas, its expected that you will offer at least 10% less. In other regions, you will need to offer more than the listing price to become the owner.
Also always remember that the realtor's job is to sell the property. The realtor has a fiduciary duty to the seller (and a vested interest) to get the highest possible price. So don't take his word for the value.
Thank you for those replies. I will talk to the realtor again today . I looked on the county tax website and it looks like the county doesnt think this property is even worth the asking price. Im still new so its confusing..but I will do the research as thats the key!
thanks again!!!!!
If it hasnt sold yet, then obviously 174k isn't FMV. As far as the Realtor wanting the best price, yes and no. I, as a Realtor, won't purposely mislead a buyer just to make the difference of $5k in the purchase price just to get 3-7% of that, in which I only get a little over half of. Yes, offer low, as is commonly done on REOs. But what you have to ask yourself is WHY hasn't it sold yet, repairs, etc? Unless you can get this for at least under $150k, I would leave this deal to the typical everyday homeowner.
Quote:
On 2004-11-11 10:59, DATIANA wrote:
Thank you for those replies. I will talk to the realtor again today . I looked on the county tax website and it looks like the county doesnt think this property is even worth the asking price. Im still new so its confusing..but I will do the research as thats the key!
thanks again!!!!!