1st TIME BUYING HOME?

Question

this is our first time buying a home, it's a foreclosed home, there asking $58,500 we really do want the house but no we never should offer what there asking were curious on where we should start the offering @ please serious answers only and any and all advice would be appreciated!

Answer 1

If your state has property taxes that are based upon current fair market values, then you should go to the assessor's office and find out what the property is assessed at. Likewise, you should go to the land records and look at the deed of trust or mortgage on which the old loan was made. Banks are different from other sellers. They want to get their money back or as much as possible.

They have more information than you do. They are going to give you a deed without covenants of general warranty, meaning if there is something wrong with the place, you cannot go back on the bank for the money to fix it. You are buying it AS IS including hidden defects. You need to bid down just to cover that risk.

Also, if there is something wrong, the bank also likely does not know as they took the property from a prior owner who may have damaged the place or been aware of damages and not informed the bank. Go there on a very rainy day and see if it floods.

Your starting offer should be based upon comparable homes of the same square footage and similar location. Start at 80-90% of what you think fair market value is. The bank isn't going to negotiate like other people. It has internal demands that must be met. $58,500 may be the minimum price they can accept without a manager having it hurt their annual performance review. You are not negotiating with a seller who is motivated by the need for cash, you are negotiating with a seller who is motivated by meeting their performance review requirements.

Answer 2

if it's the bank asking 58,500, then that is probably their bottom offer. what are similar homes selling for in your area? that price is probably already below market value. And you should probably not make any offer unless you can afford 10% down payment plus another 4-6% for closing costs

Answer 3

First, you should consider the amount of money you plan to spend in fixing the house (if any). If you believe it will take $8,000 to fix certain problems, then make your offer $8,000 lower.
Also, if the bank has taken this house back from the previous borrowers, then many banks will sell this house to a new owner (i.e. potentially you) for whatever amount is left on the mortgage. They would like to simply get back their money. Visit your recorder of deeds in that county and find out the original value of the mortgage placed on the property. While the current mortgage value is probably less, this wil give you another starting point in determining what to offer.

Good luck with your first home!

Answer 4

what they are asking may be well below the value of the home... which that is usually true on foreclosed property..... start with finding the "actual value" of the house.....if there asking price is well below it then make an offer of 12.5% less than what the want and that wil be about 50,000.... they more than likely will accept if not then go to 10% @ 53000... and its almost guarnateed they will accept.... beware of other buyers while u play the market game someone else might be prepared to pay so be very prompt on decision making

Answer 5

It depends on the house and what needs to be fix, if the refridge or oven come with it, the inspection of the house etc.. Say the furnace needs to be replaced or a roof, those are barter tools as well as the asking price. Really need more information on the house, property value etc.. Where I live at no homes go for that price, unless its in a really really bad neighborhood. So add more detail.

Answer 6

First, You need to have the home inspected to make sure that everything is working properly ( heat, air condition, no rotten floors, leaking pipes, the roof is good , electrical , dishwasher, toilets, sprinkler system) I'm only telling you this cause of experience. With a foreclosure your probably going to be getting a really good deal, and often they're price is non negotiable, but I'd offer a few thousand less and then if they want to counter they will.

Answer 7

Banks will usually accept an offer if it's within 12% of the asking price.

Answer 8

Get a buyer’s agent.

A buyer’s agent will help you come to a reasonable price, represent you throughout negotiations and will ensure that you and the seller meeting your legal obligations throughout this sale.