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Quick market update, Florida's market is not booming anymore, it's in decline, and I"m pretty sure the same is true in San Diego. Check out Housing Market Forecasts and Real Estate News
I think the only places in the U.S. that are "booming" are seattle and New York city, based of of hearsay.
Well, it's still booming pretty well up here depending on the price range of course....
I am from Alabama; where are you talking about? There is a huge difference in 245k and 150k. Based on what you have said, I can't imagine that property will appraise for near what they are asking. My advise would be that whatever you offer make it contigent on appraisal and be below what you anticipate that appraisal will be; say 20% less. So, if you anticipate an appraisal for example of 200k then make your offer 20% less contingent on appraisal. Then if appraisal comes in less then you are still at 20% discount of whatever the amount. If it comes in more you made more equity. You have amazing opportunities right now as a first time buyer. PM me your location and I can probably hook you up with an agent that can help. Being from Bama I wish I could do it myself but I can definitely help from behind the scenes.
How bad do you want it? How long will you live there? How would you feel if someone bought it tomorrow for close to the asking price; bad, or that you dodged a bullet?
If you love it and you'd love living there and you'll keep thinking about it, then maybe the asking price is worth it for you. Is the neighborhood going to keep improving, or decline?
First, your assertion that Florida is a booming market is totally incorrect. It is probably one of the worst markets at present with lots of homes on the market for a long time with people dropping prices right and left.
Second, I live in Alabama and where I live it is very common to see houses that sold for $100K 10 years ago being remodeled and sold for over $200K. I see this all the time because the area of town where many of the older people lived for years with little updating are now being sold to people moving into the area because of the good public schools. The key is to get a CMA and let that guide you.
Any emotional ties to a property will usually get in the way of making rational decisions. I would suggest that you find an agent that is willing to represent you in making any offers on the house in question. This makes the agent the 'messenger' and would leave you out of the emotional loop, so to speak.
Have your agent do a CMA (Comparative Market Analysis) for you and then decide on what to offer. If you truly want the house, go for it. Good luck
Well said Northwoods, an emotional approach is the worst way to enter any investment transaction including housing. Rational decisions are best made through a due diligence approach such as a CMA, Agent, Buyers Home Rating Program and home work. Buyer's think it through before you dive in.
Sorry, I will never again say Florida is a booming real estate market. I've seen posts on here and other sites that used it as an example, so that must now be out-dated. I am finding more and more that real estate is a totally relative and vague gamble of a business, and contradictions and exeptions are everywhere. I think that's why it's so frustrating when you are totally ignorant, because you think you are making headway, then someone says something totally opposite and makes you feel like a fool. A little dramatic, but this is a big step and I don't need vagueness...but I guess it is what it is.
And Marysally made a good point, I am hoping if we buy this house at a decent price and other younger people move in and fix up houses, the neighborhood will improve. Maybe not.
I stand corrected! I have to remember to never say never.
But what banks use BPO's on consumer purchases? The only time I've heard of banks using BPO's are when they are going through with a foreclosure. Nothing to do with making a new loan.
Wrong - BPO's are an inexpensive way for the lenders to get 2 or 3 other opinions plus the appraisal. They usually get BPO's for refis.
well first make sure to recieve a mortgage approval then go shopping.
if you have found a home that you like....keep in mind that the lender will appraise that house. If it comes in low...then you just wasted 300-400 for an appraisal.
I find it amazing anyone Worries about "wasting" $300-$400 for appraisal and is Unconcerned about Over-paying by $10 Grand! OMG, it's backwards to logic.
The appraisal contingent clause is VITAL today, and why not get a good EXPERIENCED appraiser who has worked in THAT market since Way before this boom insanity, lke 15-20 years ago? Not commissioned and Not biased, if you choose right.....
actually if appraisal comes in low, good for you buyer. you are out of contract.. or the seller can reduce the price to meet the appraisal. It happens all the time. If they need to sell, then that may be the final nudge they needed to get the price down.
Update: I found out yesterday that the house still hasn't sold. They have dropped the price down to $159,000...told you!
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