It is post foreclosure, meaning the bank owns it. It sold for 43k in '98, it then sold for 32k in '03. It is in a depressed area of the city, but even then the average home price here is 50k.
The asking price is 12k. The area has potential of $500/month in rent. It will be a rental after 2-3 years. It need some plumbing work, carpet, central heat/cooling and paint.
We're paying for everything with cash. What is a good price to offer the bank?
2007-08-19 11:54:34 · 6 answers · asked by PlasticTrees 2 in Business & Finance ➔ Renting & Real Estate
Since you are probably one of many people looking at this house as an investment opportunity, you will probably need to be close to full price before the bank will accept an offer.
2007-08-19 14:11:35 · answer #1 · answered by godged 7 · 0⤊ 0⤋
Determine the cost of the repairs that it will need. Are you sure you want a home in a depressed area? Do you think you'll be able to rent it out? Can you afford it even if it's not rented? Try offering a few thousand dollars less than the asking price - maybe 8-10 K.
2007-08-19 19:00:26 · answer #2 · answered by Princess Leia 7 · 0⤊ 0⤋
if you can turn around and sell it for 50k in a year you got nothing to lose, but it costs some people 50k just to renovate their kitchen. its probably an old house need to update electric, plumbing ,hvac, paint and carpet not to mention what else comes up, hows the roof, exterior, boiler?
you will probably be looking at 20-25k in renovations plus your 12k investment, totaling 32-37k and generating 500 a month in rent is not a bad return on your money 32 grand in a 5% account in the bank will get you 133 a month your ahead 367.00 a month
what area is this? indiana, ohio, buffalo, detroit,missouri, i wouldn't touch these homes if they gave me them for free.
2007-08-19 23:13:56 · answer #3 · answered by chris_sockets 2 · 0⤊ 0⤋
If you have to ask US, you are NOT ready to invest in Real Estate. Given the information you provided, any answer you get is a GUESS. It MAY be an educated guess, but it is ONLY a guess. Provide the city in which the house is and an estimate of repair costs and you MAY get a ballpark number.
2007-08-19 19:24:21 · answer #4 · answered by STEVEN F 7 · 1⤊ 0⤋
I would start with the after repair value of the house as your starting point. Then determine the cost of repairs to bring it to standards of what other house selling in the neighboorhood look like. Subtract these repairs from the ARV of the house less any other costs you want to add in and this is a good place to start.
2007-08-19 19:41:48 · answer #5 · answered by MikeN7 2 · 0⤊ 0⤋
It will probably sell for more then 12k... you will probably need to go up to at least 14k... possibly 40-50k if that is what homes in the area are worth.
2007-08-19 19:07:35 · answer #6 · answered by Mike 6 · 0⤊ 1⤋