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...The home shows as sold in August of 2009 for $179k and then listed in September of 2009 at $279k--and has been on the market ever since.
...Is it normal to ask $100k more than it was purchased for one year ago?...
Well, according to your dates, the listing price was set only one month after August 2009 in September 2009, not a year later.
This tells me that the bank likely took back the home in August 2009 at the foreclosure auction. The "sale" price of $179K was likely the amount of the outstanding mortgage, not a real purchase price at market value. The bank then put it on the market as bank owned a month later for what they considered market value of $279K. Probably not far off if another similar home of better condition is listed at $359K, but you should check recent sold comps to get a more accurate idea of market value.
Well, according to your dates, the listing price was set only one month after August 2009 in September 2009, not a year later.
This tells me that the bank likely took back the home in August 2009 at the foreclosure auction. The "sale" price of $179K was likely the amount of the outstanding mortgage, not a real purchase price at market value. The bank then put it on the market as bank owned a month later for what they considered market value of $279K.
Thanks for your response. Does this seem normal to you, then? To a naive buyer, it looked as though they are trying to make a $100k profit--a buy low, sell high type situation. So this could actually be a decent deal, considering the price of other properties in the same gated community?
Also, based on those numbers and the amount of time it has been on the market, how would one decide what a fair offer would be? Thanks!
Thanks for your response. Does this seem normal to you, then? To a naive buyer, it looked as though they are trying to make a $100k profit--a buy low, sell high type situation. So this could actually be a decent deal, considering the price of other properties in the same gated community?
Also, based on those numbers and the amount of time it has been on the market, how would one decide what a fair offer would be? Thanks!
Don't get wrapped up in the wrong numbers... It doesn't matter what is owed on the mortgage, what it sold for last year is not helpful, and list prices in the area are probably the worst indicator.
As rjrcm states, get a CMA (market analysis) from a RE agent and find out what comparable properties recently SOLD for... That is what you should be looking at to determine a "fair offer".
... Also, based on those numbers and the amount of time it has been on the market, how would one decide what a fair offer would be? Thanks!
Agents here will probably suggest going to them for comps and advice but I suggest obtaining an independent appraisal if you're truly interested in the property.
Thanks for your response. Does this seem normal to you, then? To a naive buyer, it looked as though they are trying to make a $100k profit--a buy low, sell high type situation. So this could actually be a decent deal, considering the price of other properties in the same gated community?
Also, based on those numbers and the amount of time it has been on the market, how would one decide what a fair offer would be? Thanks!
As I and others recommended, you need to determine current market value based on recently sold comps to find out if this is a decent deal. The previous transactions and currently listed homes don't matter. Once you have an understanding of market value, then you can decide what you might consider a fair offer.
Thanks for all the great responses. I have looked into what has sold in the area in the last year and in this specific gated community, a similar house (but in much better condition) recently sold for $250k. The house I am interested in is in "as-is" condition and the MLS lists several investments that will need to be made (update kitchen, carpets, paint, other things).
Outside the gated community, the comps are a mix. This house was built in 1989, but the homes outside this gated community are much older (1950s, '60s and '70s). Consequently, they have been selling in the high 100's and lower to mid 200's.
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