Making an offer on a house-need advice

[Commander Quan]

That sounds low to me but make them an offer and see what they say. Do you know how long the bank has owned the property? And what they paid for it? If it's a foreclosure check with your county auditor to see how much they "bought" it for at sheriffs sale. That will give you a starting point.

[forgop]

Originally Posted by Commander Quan

That sounds low to me but make them an offer and see what they say. Do you know how long the bank has owned the property? And what they paid for it? If it's a foreclosure check with your county auditor to see how much they "bought" it for at sheriffs sale. That will give you a starting point.

Ok, thanks for the advice. I know the circumstances of this particular house makes it a bit more unusual that buying a pre-owned or a new home in terms of possibly getting a better deal.

One bit of info my friend told me is that when they were building it, there was some mold issues due to rain. His understanding was they gutted the thing and had to start all over. I would have probably no fewer than 2 different inspectors look the house over and determine there are no potential mold issues just to be safe. The basement is unfinished which is fine because I would be content doing the flooring, electrical, and drywall myself.

[BigCat]

What's the house worth in a non-distressed market? If its around $300,000, then definitely come in low with the bank. But if its more like $500,000, the price the bank has it set at is probably close to as low as the bank is willing to go at this point, unless its been on the market for some time. I bought a house recently and noticed that bank owned properties almost always went for asking price because they were already significantly discounted. You should probably talk to a realtor in the area. He or she will be able to help you out. On the house we bought, our realtor actually called the seller's agent and ask if what we were willing to offer was worth putting on paper based on the asking price. Turns out it was and we got it for a lot less than the asking price. The point is, consult with a pro in the area and you'll get plenty of info.

Can't answer your question without knowing what the house is appraised for or assessed at, at the minimum what similar properties in the neigborhood have recently sold for. It may be a half million dollar house that the bank has 300,000 in, if that's the case negotiation isn't going to get you far.

However, there IS a reason the house hasn't sold in 3 years. Maybe it's the mold, maybe something else. In most states a seller is required to disclose any material defects to a buyer, so they have to tell you about any major problems that exist.

[MikeyC]

Originally Posted by BigCat

What's the house worth in a non-distressed market? If its around $300,000, then definitely come in low with the bank. But if its more like $500,000, the price the bank has it set at is probably close to as low as the bank is willing to go at this point, unless its been on the market for some time. I bought a house recently and noticed that bank owned properties almost always went for asking price because they were already significantly discounted. You should probably talk to a realtor in the area. He or she will be able to help you out. On the house we bought, our realtor actually called the seller's agent and ask if what we were willing to offer was worth putting on paper based on the asking price. Turns out it was and we got it for a lot less than the asking price. The point is, consult with a pro in the area and you'll get plenty of info.

If you have questions with a transaction this big then wouldn't you feel better about it if you involved a professional?