U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > North Carolina > Raleigh, Durham, Chapel Hill, Cary
 [Register]
Raleigh, Durham, Chapel Hill, Cary The Triangle Area
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 01-20-2010, 09:50 AM
 
99 posts, read 322,634 times
Reputation: 21

Advertisements

We're thinking of buying a foreclosed home. It's owned by the lender & available in "as-is" condition. Since it's going to be our first home, I'm little bit nervous.

The reason I'm concerned is the lender has replaced the kitchen cabinets & kitchen appliances. The walls are recently painted. Another thing I noticed was that the A/C unit in the yard is covered with ant hills. From what I've gathered reading on this forum is that 1.) usually the foreclosed homes are subotaged by the owner when they foreclose it & 2.) the lender does not have any interest in putting down any more money than they already have. That makes me wonder what they are still trying to hide/mask & what could be still out there that needs to be fixed.

1.) Can anyone suggest a good Home Inspector? My Real Estate broker suggested one but I would like to explore other options.
2.) Though it is owned by the lender, can the listed price still be negotiated? (I was told that you can't). If yes & the house is at around $350k range how much should I offer? (The lender is already reviewing another offer which seems quite low).

Thanks a lot for your time & suggestions!
Quick reply to this message

 
Old 01-20-2010, 10:05 AM
 
1,593 posts, read 2,690,453 times
Reputation: 965
If something is wrong with the house that prevents it from functioning as a home, AC, plumping, electrical, ect then concessions needs to be made by the bank to address that.

You can negotiate the heck out of them, remember they have NO attachment to the property. I bought a house from a relocation company and low balled the heck out of them expecting to have a counter off and they just accepted the low ball. The inspection turned up a broken plumbing fixed and the relocation company agreed to pay for it.

My understanding is that AS-IS means they can't make any statement about the property in that disclosure form, but they still have to sell you a proper functioning home. Of course it's up to the inspector to make sure that is the case. They also probably don't want to deal with decorating concessions, ect ect.
Quick reply to this message
 
Old 01-20-2010, 10:12 AM
 
1,420 posts, read 4,447,256 times
Reputation: 1880
Richard Pontello | N. Eastern Carolina Home Svcs. | Cary, North Carolina | ASHI, American Society of Home Inspectors (http://www.ashi.org/homeinspectors/NorthCarolina/Cary/6632CH/ - broken link)
Quick reply to this message
 
Old 01-20-2010, 10:19 AM
 
124 posts, read 270,964 times
Reputation: 132
Hasn't your real estate agent discussed the possibility of negotiating with you? Usually, I believe you can negotiate foreclosures if they are on the MLS, but if someone else has already put in an offer, you may need to be prepared for the potential of a bidding war.

In my experience (bought a foreclosure), there could be something that is either wrong or in major disrepair that they will not tell you about --and a home inspector may not find it. In our experience, the A/C unit worked fine during the home inspection in the winter, but due to the extreme lack of maintenence (common in foreclosed homes), it blew up beyond repair in when the warm weather came and had to be replaced.

I'm not saying that foreclosures aren't worth it -- just be prepared to pay for some repairs/ replacements equal to what the previous owner DIDN'T pay for over the past few years.
Quick reply to this message
 
Old 01-20-2010, 12:29 PM
 
397 posts, read 1,137,120 times
Reputation: 172
Robert E. Aber | Aber Home Inspections, Inc. | Raleigh, North Carolina | ASHI, American Society of Home Inspectors (http://www.ashi.org/homeinspectors/NorthCarolina/Raleigh/17153EB/ - broken link)

Good, thorough inspector.
Quick reply to this message
 
Old 01-20-2010, 02:08 PM
 
99 posts, read 322,634 times
Reputation: 21
Thanks all for your inputs & references.

I'm not sure if it's only my experience but I've found that not only the seller, but "your" Real Estate Agent also wants to extract as much money out of you as possible.

The property was last sold for $390k in 2007 & is currently listed for $360k. I wanted to offer $335k, close to the transfer value. (Is that fair?). However, the agent is trying to push close to the list price. How much in your opnion would be a fair price?
Quick reply to this message
 
Old 01-20-2010, 03:07 PM
 
Location: Cary, NC
31,592 posts, read 55,307,520 times
Reputation: 30150
Quote:
Originally Posted by HitsOfMisses View Post
Thanks all for your inputs & references.

I'm not sure if it's only my experience but I've found that not only the seller, but "your" Real Estate Agent also wants to extract as much money out of you as possible.

The property was last sold for $390k in 2007 & is currently listed for $360k. I wanted to offer $335k, close to the transfer value. (Is that fair?). However, the agent is trying to push close to the list price. How much in your opnion would be a fair price?
What is a "transfer value?" If you are talking about the Tax Valuation, it is nearly irrelevant.

Forget "fair." It is irrelevant with a bank. They couldn't care less about "fair." Just be honest.

The value of the property is market value which must be supported by comparable sales and recognition of any repair costs to bring it to the common neighborhood standards those comps support.
Quick reply to this message
 
Old 01-20-2010, 04:26 PM
 
Location: NC
4,529 posts, read 7,034,062 times
Reputation: 4720
Mike is right, of course, as he's an experienced realtor! Some of this info here is correct IMO, but there's no substitution for experience...such as Mike and the folks who've gone thru it.

i also have tried to buy foreclosures, I think I could write a book on all the bad luck you can have "trying" buying a house - period!

Unless you have 100% faith in your realtor, and even then, as a first time homebuyer, NO WAY would I have tried for a foreclosure, and I consider myself pretty savvy. There are way too many things to tell you about in either a conversation or a post here. Maybe your luck is better than mine and you can work it out, that would be nice.

i can say that you can offer less than asking, and can get a house for that. But honestly, what I mostly found in the past 2 yrs of dealing with foreclosures is that it's rare. I have determined that if a foreclosure house is decent, then you are not the only one interested. There are ppl from out of the area and state looking at them too, and many of them have 100% cash. Competition is stiff.

I have yet to find one that I didn't have to bid against someone on. Except the time when the person accepted my offer (going into short sale) but didn't have clear title. Oh, and there was the time I made an offer on a FC and Obama signed the bill, 1 hr later, and asked banks to give folks more time! That one house I tried to buy twice, no luck! The owner actually lived in the house 1.5 yrs without making a house pmt.

To sum it up, use Mike's formula to determine value if you WANT this house more than any other. If you are bidding against someone then there could be others showing up any minute now if you go less than Mike suggests, be prepared for a 50/50 shot at best. Maybe your realtor is a person of few words and knows this but didn't explain it well. To have a fair shot, you must have a realtor who has dealt with foreclosures otherwise they are training on your dime, you will lose out. And as you suspect, get a GOOD inspector. Ant hills around something don't worry me. But you should have a HVAC person ck out the system as part of your pre offer inspection...it's worth it - $100 vs $6k or so if it goes bad.

And, make sure your realtor advises you on the best way to structure your offer...they will look at the type of loan you get as part of the deal-good or bad. Be prepared that banks will sit on your offer waiting for a better one, personally, I'd give them the shortest turnaround time possible. If they come back and ask for highest and best, then IF YOU MUST have the house, the minimum bid should be the asking price, no contingencies other than basic stuff.

I recently lost a house like this as the other person bid $30 more than me! That'll ruin a person's day!

Good luck! If you like, you could dm me the address, I'll do some quick research for you if it's in Raleigh, Wake Forest, Knightdale, Cary, I have no experience with Apex, HS, areas. I am not in the market for a house so you are safe I'll understand if you don't feel comfortable about this, no biggie..
Quick reply to this message
 
Old 01-20-2010, 04:31 PM
 
99 posts, read 322,634 times
Reputation: 21
Quote:
Originally Posted by MikeJaquish View Post
What is a "transfer value?" If you are talking about the Tax Valuation, it is nearly irrelevant.

Forget "fair." It is irrelevant with a bank. They couldn't care less about "fair." Just be honest.

The value of the property is market value which must be supported by comparable sales and recognition of any repair costs to bring it to the common neighborhood standards those comps support.
Transfer Value (335k)= The amount paid for the property the last time it transferred ownership. In this case that would be the Lender.

Surprisingly, the first loan amount was 315k .
Quick reply to this message
 
Old 01-20-2010, 04:46 PM
 
99 posts, read 322,634 times
Reputation: 21
Raleighlass, you've quite an experience, although not so pleasant but funny nevertheless. Obama signing the bill 1 hour after your offer would ruin my year, untill I come across something even worse.

I've a realtor & he does "say" he's experience with FC.

I was told that the Lender is awaiting for the response for his counter. And then, he'll come back with another offer & open it up to both of us for a bidding war!!! It's not something that I must have. I'm only interested if it is appropriately priced (enough saving potential & cushion towards future in the event I suddenly loose my job in the next 2-3 yrs).

Besides, refrigerator & W/D are not included. Can that or the $$ value be negotiated & included in the final offer? Again, I was told since it's a foreclosure, you cannot. ?

Last edited by HitsOfMisses; 01-20-2010 at 05:01 PM..
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > North Carolina > Raleigh, Durham, Chapel Hill, Cary
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top