foreclosure house question (bank owned, for sale, foreclosures)

[AJ1972]

Today we are looking at a bank foreclosure.
229k.
4 bedroom 1980 sq ft.
built in 2002.
fenced in yard.
the neighborhood i like.
most homes are selling in there for 275k.
since this is a foreclosure, at 229k, what should i low ball?
i saw pics only (seeing the house today).
master bath shower need re grouting, kitchen needs a refrigerator.
needs new carpeting.

just from that, what would you low ball?

[fauve]

I tried buying a short sale with a full price all cash offer. The bank wouldn't take it because their appraiser came up with a price that was $60K higher. The bank balked, I withdrew my offer and the house was relisted at the higher appraised price. It's finally off the market, but they had it listed at least another 4 months before they finally got their price. It's a strange market out there.

[AJ1972]

Never mind, the house was a MESS!

[Magnolia Bloom]

Someone in Jax just bought a condo that sold for 225k four years ago for 90k in a short sale. And they paid the past due assessments that were due.

I'd imagine that a single family home would be a slightly different story.

I haven't lived there in half a dozen years, so it will be interesting to see the replies from those in the know.

[heydade]

bank owned are almost ALWAYS a complete mess. Disgusting piles of excrement.

[trekker954]

i looked at probably 60 homes to purchase, some foreclosures, some short sales. IMHO, they are so not worth it. they are trashed. not only no appliances, but they are literally ripped out, anything that should be a fixture is gone, wires hanging out. the pool water is black and the walls are dirty. hang in there. Like I said, I saw so many homes, i do truly believe I got a gorgeous move in condition home at foreclosure price. if you look at enough and make a few offers, you will find someone willing to deal. I did. While looking I eventually told my realtor to stop showing me forecl\osures. btw, short sales are even worse. they tie you up for months with no guarantee the bank will even consider your offer

[rkumar3]

I beg to differ with the earlier post..... While I would certainly stay away from short sale, bank owned properties are the best deal out there (in most cases). We have been looking at them for last three months and while most of them needed work (some had missing appliance while others were missing the whole kitchen/floors etc), there were a few that were move in ready.

As for as pricing is concerned, the good deals are still moving fast. We offered on a couple of them at close 95% of asking price (all cash) and still couldn't get them!! We finally got have a accepted contract on a Town house, it is missing the refrigerator, stove, washer/dryer and need very minimum work... We are guessing about $2000 or so. It is about 50% off from its peak so we are pretty content with it. Don't get me wrong there are bank owned properties out there that are still for months and banks have been reducing prices to offload them..

I guess all I am saying is, use the usual common sense... see everything and not just bank owned (we omitted the short sales though) in your price range/location. When it comes to making an offer, take a look at the comps and the amount of work it needs instead of just making a low ball offer since that doesn't always work. Feel free to PM if you have any questions/need help etc.

[Sharkey514]

We are looking to buy via Short-Sale. Is it easier to wait and buy a foreclosed property? What is easier? Are these deals going through? Also, I see houses for sale that seem to be "short" sales because they are listed below mortgate value, but they are not listed as such by the realtor's info on their website. What's the deal?

[casualobserver]

I'd say it would depend on the particular status of the property. If it's a vacant condo, nothing much is going to deteriorate if you wait. If it's a single family residence, whether being lived in or not, it's condition is at risk if you wait. However, on the flip side, banks don't want REO on their balance sheet and I'm sure they do move foreclosures as fast as they can.

I'd say the main problem with short sales is is what young Fauve experienced. Banks dawdle thinking that something better will come along or their borrower will somehow recover and you become frustrated waiting. Especially if there is more than one bank on the property. Also, remember, some of the comps out there today are from Europeans and So. Americans willing to pay closer to asking.

As for realtors, for every good one out there in So. Fla, there are three bad. Why scare a potential buyer with the facts until they see it and maybe get them emotionally attracted?

I'd say don't mess with shorts or foreclosures unless you're tough enough to bite your arm and not feel it. However, if you're tough, non-emotional, can play the waiting game, can do all the research and have your cash/financing ready to go, I'm sure you can ultimately land one at a very nice price.

[Sharkey514]

Thanks -- not sure to try to be something and see what the banks deal us...some of these properties have 2 or 3 mortgages on them. I thought that the board of realtors made their brokers fully disclose "short sale" in the listing -- is this not true?