How much would I offer on a 180, 000 house
that is in foreclosure and has been empty for the past 2 years?
Posted by pcromwell
I don't mean to sound glib, but "whatever you are willing to pay". If you are willing to pay $180k, but are wondering if it might be worth trying a lower offer first, it would be really hard to say based on the info provided. For example, are others likely to make competing offers? If you you want to buy the house and are looking to buy it low enough to flip for profit, then deduct sales costs, and the desired profit and start there. Some say 30% below, but I think it is too hard to generalize as costs like repairs can vary a great deal. If you want to buy the house as a rental, then the question is how much rent will you get, and what kind of ROI do you expect. Bottom line is that there are no hard and fast rules and it really depends on the situation.
Answered by Sean
Fri Sep 12th 2008 at 10:31pm
It really depends on your market. In Bakersfield, CA, REO properties are for the most part listed well below what they actually sell for. For example, an REO was listed for $146,000, it sold for $210,000! It was in a very desirable neighborhood, and 3 years ago the same home sold as new construction for $317,000. Other REO homes in Bakersfield have sat on the market for a very long time. You need to be able to look at how long the home as been on the market, whether you are presenting an all cash offer, if you do have a loan, your offer may be better even if it's lower if your down payment is better. There are a lot of factors. You really need a great real estate agent to help you decided what a good offer will be. By good offer, I mean the offer that gets accepted and is one that is within your budget and profitable margin.
Answered by natalie
Wed Jan 14th 2009 at 2:46pm