flak88mm Posted April 17, 2008 Report Posted April 17, 2008 The sqft of the lot is 6k while the house is 3k. The interior has all the light bulbs taken out, all the sinks taken out, all the toilets has poop in it, the water doesn't run, the cabinets in the kitchen have been stripped out, some holes in a few places here and there, carpet dirty as crap, and many more that an average home that closes doesn't have. It is listed on the MLS as 363K, I told my agent I wanted to make an offer of 310K. A few days later, the seller came back saying to my agent that somebody has offered as high as 400K for that house. I want this house, but don't want to pay that much. What do you think is a good max offer for this house? It has 5 bedrooms and 2-1/2 baths. And I am going thru FHA, first time home buyer, and am asking the seller to provide the closing and down payment costs. We also offered a 60 day escrow because our apartments need at least a 2 months notice. Any suggestions how I should proceed with this?
Rick9972 Posted April 17, 2008 Report Posted April 17, 2008 The sqft of the lot is 6k while the house is 3k. The interior has all the light bulbs taken out, all the sinks taken out, all the toilets has poop in it, the water doesn't run, the cabinets in the kitchen have been stripped out, some holes in a few places here and there, carpet dirty as crap, and many more that an average home that closes doesn't have. It is listed on the MLS as 363K, I told my agent I wanted to make an offer of 310K. A few days later, the seller came back saying to my agent that somebody has offered as high as 400K for that house. I want this house, but don't want to pay that much. What do you think is a good max offer for this house? It has 5 bedrooms and 2-1/2 baths. And I am going thru FHA, first time home buyer, and am asking the seller to provide the closing and down payment costs. We also offered a 60 day escrow because our apartments need at least a 2 months notice. Any suggestions how I should proceed with this?I think the most important thing to remember when dealing with real estate, is the right you have to walk away from a deal.No one here has your knowledge of the local market and thus cannot give you advice. I can say that from what you have stated, you would be looking at probably $50,000 or more in repairs, just from the items you mentioned and that you can see. What needs repaired that you cannot see?If you have been looking for a while, then you should trust your initial instinct and tell the bank they had better take the 400k offer while they have a chance. I personally do not believe they have such an offer, but that is a risk you would have to take.I would come back with a 330k offer if I really wanted the house and the bank could take it or leave it. You will probably have to wait a month or so as the bank will try to wait you out. Then they might take it or might not.*shrugs*
Magdalen77 Posted April 17, 2008 Report Posted April 17, 2008 The sqft of the lot is 6k while the house is 3k. The interior has all the light bulbs taken out, all the sinks taken out, all the toilets has poop in it, the water doesn't run, the cabinets in the kitchen have been stripped out, some holes in a few places here and there, carpet dirty as crap, and many more that an average home that closes doesn't have. It is listed on the MLS as 363K, I told my agent I wanted to make an offer of 310K. A few days later, the seller came back saying to my agent that somebody has offered as high as 400K for that house. I want this house, but don't want to pay that much. What do you think is a good max offer for this house? It has 5 bedrooms and 2-1/2 baths. And I am going thru FHA, first time home buyer, and am asking the seller to provide the closing and down payment costs. We also offered a 60 day escrow because our apartments need at least a 2 months notice. Any suggestions how I should proceed with this?If someone has offered 400K, why is it still on the market?? I agree with Rick, there's no such offer.
jq26 Posted April 17, 2008 Report Posted April 17, 2008 You asking a question that is unanswerable. That house might be worth $150k in Detroit, $300k in Philadelphia, or worth $2 million in parts of LA. And even in one locale, fair market value can depend on what block you are on. You need access to as many comp values as you can possibly get for that neighborhood. And make sure that the comp values factor in seller's assists, etc.
CleverCynic Posted April 17, 2008 Report Posted April 17, 2008 For a 400k offer to exist, there'd have to be at least two other buyers aggressively pursuing the property. One agreed to asking price, the other bid higher and so forth all the way up to 400k over a period of time... otherwise no reason to counter a 363k offer with one that much higher. So, either they're lying their asses off (and who wants to do business with that?) or you're not even in the game and should pull your heart out of it asap.
LVMortgageMom Posted April 17, 2008 Report Posted April 17, 2008 He's not telling you what the house was being offered at when they received the 400k offer. At that point the sale price could have been 500k. You can pull the pulic records on that house to see what the last selling price was. One thing that you must remember, is that this can not be a solely emotional decision. It's hard to make a purchase of this magnitude and not have some emotion involved. But just as others have, said, you must be willing to walkaway if you can't get the deal that you need.
flak88mm Posted April 17, 2008 Author Report Posted April 17, 2008 He's not telling you what the house was being offered at when they received the 400k offer. At that point the sale price could have been 500k. You can pull the pulic records on that house to see what the last selling price was. One thing that you must remember, is that this can not be a solely emotional decision. It's hard to make a purchase of this magnitude and not have some emotion involved. But just as others have, said, you must be willing to walkaway if you can't get the deal that you need.The only public records i looked at with regards to the home is thru zillow.comIt says it was sold on 1/16/2008 for $486k and now its bank owned. But on zillow, it says its currently worth $364,900. It peaked at 671k back in early 2006. All the other 16 homes on that street is currently worth from 410k to mid 500k. This is the only house that is worth 363k. So I wonder, on top of the repairs needed, if there is anything else I need to know about why its that low.What should I do now, offer 330k as my max or what? Is there another way for me to pull public records on this house?
flak88mm Posted April 17, 2008 Author Report Posted April 17, 2008 If someone has offered 400K, why is it still on the market?? I agree with Rick, there's no such offer.You know what, my realtor said the same thing. if someone offered 400k, then they would have sold it already so there's some BS in what she's saying.
jq26 Posted April 17, 2008 Report Posted April 17, 2008 What should I do now, offer 330k as my max or what? Is there another way for me to pull public records on this house?Yes. 1) pull the deeds at the county courthouse. While you are there, you can pull everyone else's deed in the neighborhood and see what everyone paid for them. 2) have a realtor do the same thing via MLS database.3) have a lawyer (or someone with LexisNexis database) do the same thing. I can't stress comp values enough in this environment. This mysterious "buyer" may end up paying 400K for a home worth $375 in comparable condition as the neighbors. It may take $50k to get there. Or, home values have already dropped lower and the home is only worth $350. Zillow has no idea of any of these things. My home has moved 5% in two weeks on Zillow. That's ridiculous. Real estate doesn't trade like stocks.
flak88mm Posted April 17, 2008 Author Report Posted April 17, 2008 Yes. 1) pull the deeds at the county courthouse. While you are there, you can pull everyone else's deed in the neighborhood and see what everyone paid for them. 2) have a realtor do the same thing via MLS database.3) have a lawyer (or someone with LexisNexis database) do the same thing. I can't stress comp values enough in this environment. This mysterious "buyer" may end up paying 400K for a home worth $375 in comparable condition as the neighbors. It may take $50k to get there. Or, home values have already dropped lower and the home is only worth $350. Zillow has no idea of any of these things. My home has moved 5% in two weeks on Zillow. That's ridiculous. Real estate doesn't trade like stocks.ok i will do this. thanks.
Rick9972 Posted April 18, 2008 Report Posted April 18, 2008 My Realtor pulls PVA records for houses I am interested in and for the neighborhood. Ask yours to do the same.I had a similiar situation last year. I offered 250000 for a house and an friend of a friend offered 275000. Bank claimed to have a 325000 offer and offered me "last look" to match that offer. I told them I was not interested and would not even go to 275000. Bank replied that they would never sell it for 275000. Two months later they asked the friend if his offer was still on the table. He laughted and told them no, but his new offer of 240000 was still doable. Month after that they asked me if I was still interested. No was my answer as I had been doing it as part of a group investment plan, and we had moved on to other things.Do not be scared to walk away, sometimes things will come and chase you down.
Moneedshelp Posted April 18, 2008 Report Posted April 18, 2008 the bank sounds like it is trying to keep its losses at a minimum by getting the max out of you. Doesn't sound like they can be trusted. Your agent should be able to help you wade through this process. Keep your eyes open. Good luck
firstsource Posted April 19, 2008 Report Posted April 19, 2008 My question concerns the condition of the home. In the shape it is in it will not pass an FHA appraisal. A solution would be to see if you can get an FHA rehab loan (called a 203K).If you qualify and if the county loan limits qualify and if your lender does those type loans, then this could be a solution. This loan is in 2 parts. One pays off the seller-the other provides the money for the repairs. Charles
melisadawn Posted April 19, 2008 Report Posted April 19, 2008 Our house needed repairs. Not enough for 203k. Went FHA and had to put $$$ in escrow and time limit to do the repairs. Then re-appraisal. Was HUD home.
StuckInTheMiddle Posted April 21, 2008 Report Posted April 21, 2008 I think the most important thing to remember when dealing with real estate, is the right you have to walk away from a deal.No one here has your knowledge of the local market and thus cannot give you advice. I can say that from what you have stated, you would be looking at probably $50,000 or more in repairs, just from the items you mentioned and that you can see. What needs repaired that you cannot see?Last year I looked at 15 houses and made offers on 3 that I thought I 'totally had to have' - in real estate things happen for a reason and if a deal doesn't fall into a place, there's a good reason albeit mysterious. The house I did end up buying is by far my favorite altho not necessarily the 'marketing gem' some others were. Inherent value is hard to find and its usually under ugly paint colors Totally agree with Rick9972 on this. Put it this way, a 'lipstick' remodel of paint, carpet and minor repairs can run on average $10k-15k per 1000 sq ft.Also, if someone is claiming $400k offers... why haven't they taken it if its listed for $35k below that?Any offer should include deductions for repairs, leverage .... also ask your realtor, realtors they work with... lenders in the area, ask everyone uou know what they think of the property and get them to put a number to it. After all the market value of a property is exactly what someone else is willing to pay for it.
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