Im going to look at a house tomorrow that seems to good to be true. 3 bedrooms around 10x10. Has a dining room and a extra room in the basement. A screened in porch. It was buit 2 years ago. It comes with all the appliances. Public water, public sewers. Propane heat. Baseboards. Its not in a flood area. Taxes are only 1800.00 a year. LSTZ 50x63. I saw pictures and it looks great. Its also in a decent area. It seems like it is bank owned. States Must sell This home must be sold Seller/Bank will take the highest resonable offer! Listed at 195,000.00. That is unheard of in this area even though it seems rather small. So why would it be on the market for 260 days.
2007-07-20 14:59:03 · 8 answers · asked by formula11e2000 2 in Business & Finance ➔ Renting & Real Estate
it sound likeit is a foreclosure and during the foreclosure process it may have been listed at a higher rate. it is now in a trustee sale and the bidding starts at $195K (starts at...they want a higher bid!)
good luck
2007-07-20 15:08:41 · answer #1 · answered by Blue October 6 · 0⤊ 0⤋
A couple of warnings:
1) USE A REALTOR. It won't cost you a dime - in every place I've heard of, the seller pays the realtor's fees. The protection you get is very much worth the effort.
2) Sign a "buyers agency" agreement with the realtor. In most areas, the realtor automatically works for the seller, even if you found the one that you're working with, UNLESS YOU SIGN A BUYER'S AGENCY AGREEMENT. This states that the buyer's realtor is legally working for you (the buyer), not the seller.
3) If you write an offer, make it full of contingencies that will get you out of the deal if there's something you don't like. That would at least include that you don't get financed, and that you don't approve of the report from the home inspector.
4) Hire a home inspector. This person will (hopefully) go through the house from top to bottom, and inspect the roof, the structure, the foundation, the electrical and plumbing systems, the septic system if it has one, the well, the heating and cooling systems, the siding, windows, doors, and anything else he can think of. You should get a written report that lists the condition of all of these, assuming they are present. Make sure before hand that he does this, or go find another inspector. If possible, be there with him to go through the house with him, so that you can see any items he notes on the report. Yeah, it's only 2 years old, but if it's not selling, there's a reason. This might be it.
5) have the realtor double-check the background - is it really not in a flood plane? Are the taxes really only $1800? Are the schools good, is there any major development scheduled in the area that you're not aware of, are there any crime stats that aren't commonly known around there?
6) Be sure that the realtor does a comparative analysis. This means that they research at least 3-4 other houses in the area that have sold recently. The houses should be comparable to this one in size, condition, and location. This lets you get an idea of whether what you think is a steal really is, or if it's about right for that area.
Knowledge and planning are key. You may have found a gem. You may have found a turd. But don't rush in blindly, or you'll find out the hard way why it's priced under the market value.
2007-07-20 22:11:39 · answer #2 · answered by Ralfcoder 7 · 1⤊ 0⤋
What state are you in? City? If it's an REO/bank owned then that's why it is cheap. The bank wants to unload it; they're not making any money letting it sit. Probably needs some, if not alot of work/upgrades, may be mostly cosmetic, but take a look then go from there. You can always put in an offer, take advantage of the time you have to check out the place (termite-seller pays, home inspection-you pay for) which is 17 days after acceptance in CA, and pull out w/o consequences if there are bigger problems than you first thought. Could have other problems that your Realtor could find out about. May have been on the market at a higher price for a while, and didn't sell, so the price was dropped to grab some interest. It's a soft market right now, and a great time for buyers! If it's a good deal chances are it won't be there long at that price, someone will make a call on it, check it out and place the offer. You might want to be the first, so get going!
2007-07-20 22:13:42 · answer #3 · answered by J k 3 · 0⤊ 0⤋
There are many factors that could be the cause, the main one being that the housing market across the US has been in a slump. It is bad for sellers who are having difficulty getting their asking price, but terrific for those who are buying and now have the opportunity to negotiate much lower prices. It is possible that the house was being built and the contractor/owner ran into financing problems and could not come up with money to complete the house.
Maybe if you were to check you would find out if they skimped on materials and used only the most basic quality. Eg, in the kitchen, they might have used a Formica counter top instead of granite. On the floors they might have used vinyl tiles instead of marble, stone, slate. Bathtubs and other fixtures might be of a lower quality.
There are many givens. Is there a glut of new homes in the area? That could also be another factor. Has there been a sudden or drastic change in the economy in the area? For example, did the area lose a major corporation that provided most of the jobs, thereby making housing less in demand? Is there an undesirable building or facility that is built, or is about to be built close to the house and other potential buyers found out and declined to buy the house?
Ask the real estate salesperson questions about the property. The salesperson or broker has an ethical obligation to give you honest answers if you ask. They don't always volunteer certain information that they are not required to address under the law, so you must probe. Before you buy, research, research, research!!!
2007-07-20 22:34:31 · answer #4 · answered by bombastic 6 · 0⤊ 0⤋
It could have some structural problems or termites. If you sign a contract make sure it is contigent upon a clear house inspection and termite inspection. Don't be cheap when it comes to these inspections. It is worth it to hire the best especially if you are looking to buy.
Sometimes the market is slow and maybe that is why it has not sold of all checks out okay.
2007-07-20 22:11:26 · answer #5 · answered by lovnlife 2 · 0⤊ 0⤋
Have you looked at it yet?
Before you start asking why, look around. This IS a buyer's market, and chances are it was too small for the majority of buyers looking at it.
OR it could have failed the inspection miserably.
2007-07-20 22:01:40 · answer #6 · answered by FaZizzle 7 · 0⤊ 0⤋
what area? what state? probably because the lenders are tighting the market. pay for an inspection before you buy.
2007-07-20 22:03:53 · answer #7 · answered by katsride 2 · 0⤊ 0⤋
lot size could be a big factor......I have a 50x100 and think its horribly small!
2007-07-20 22:09:21 · answer #8 · answered by Tooz 3 · 0⤊ 0⤋