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Trying to figure out where to start intial offer on 2000 sg ft 3 bed home. It needs new roof badly, one wall in basement is leaning in(I have a contractor who can fix it for reasonable price). Looking at probably around $12,000 in repairs. House been on market 6 weeks, no offers. Asking price $70,000. According to tax info house foreclosed on by Wells Fargo and listed $145,000 as amount owed. Was sold to investment LLC in July for $32,000. We are going to live in house. Any thoughts on where I should start my intial offer? Thanks
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Figure that the LLC wants to probably double their investment. Call it $64K and if that's a number that doesn't pencil out, move on. Ask for some credits for repairs. The amount owed Wells has no bearing on the numbers.
Trying to figure out where to start intial offer on 2000 sg ft 3 bed home.
does that 2000SF include the basement? (it shouldn't)
It needs new roof badly, one wall in basement is leaning in
(I have a contractor who can fix it for reasonable price). <-- What does the structural engineer say?
Looking at probably around $12,000 in repairs PLUS the roof
House been on market 6 weeks, no offers.
Asking price $70,000.
Was sold to investment LLC in July for $32,000.
How much would the market price be for the house if the roof and wall work were already done?
What do the neighborhood comps indicate?
What OTHER work does the place need?
roof work + wall work + aggravation = $X
the ordinary repair allowance that ANY existing house needs = $Y
Trying to figure out where to start intial offer on 2000 sg ft 3 bed home. It needs new roof badly, one wall in basement is leaning in(I have a contractor who can fix it for reasonable price). Looking at probably around $12,000 in repairs. House been on market 6 weeks, no offers. Asking price $70,000. According to tax info house foreclosed on by Wells Fargo and listed $145,000 as amount owed. Was sold to investment LLC in July for $32,000. We are going to live in house. Any thoughts on where I should start my intial offer? Thanks
Unless you are paying cash you are probably going to need a 'fix up' loan. Unlikely you will be able to obtain regular conventional financing for a home with visible structual issue, unless the seller were to repair prior to close.
I guess it depends on what you believe the house, including repairs is worth. In this market, some discount from the listing is generally expected on a foreclosed property (5% range) -- The question is whether the bank has factored the roof and leak repair into their price (?).
Offer $66K IF they replace the roof and repair the leak in the basement (plus anything else that turns-up at inspection time). Otherwise, offer $54K (if you think the repaired house will be worth $70K) ... note: repairs/upgrades always cost more than expected. If they say "no", ask them how low they will go and if you can bundle the repairs into the mortgage (also ask about mortgage terms).
Your objective at this point is not to buy the house, but, to find an acceptable bottom price that might be acceptable to the bank. (Banks are not in the repair/upgrade business ... so your real target is to do those things yourself).
Your agent, who is familiar with your local market is the best person to help you determine the current value and formulate an offer.
We can offer all sorts of suggestions, but have no idea if those suggestions will work in your market.
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