If you were the buyer, how much would you offer to buy this bank-owned house?

Question

1. It's a 2 bdrm/1bath Single Family house. 780sqft living area. 3680sqft Lot. Listing price $349,900.

2. Exterior looks fine. (Roof, Yard, 3 Parking areas, window are in good condition.)

3. Interior areas need to be remodeled or repaired: Kitchen, Bathroom, floor, Air condition.

4. Location is in a just normal neighborhood. However, it's about half mile away from a very good neighborhood.

5. Built in 1930's. Relatively well-maintained.

6. Buyer's market

7. This property listed to the market for 3.5 months.

90% of Listing price: $314,910
80% of Listing price: $279,920
70% of Listing price: $244,930

This property is located in the heart of Los Angeles. I know, it's Expensive in California, that's the fact I have to deal with.

Okay, the Comps in the surrounding areas are ranging from $325K to $480K.

Answer 1

Happy, I am buying bank owned homes in CA. The banks really do not give a S___ if they sit on it for a year. I tend to offer asking price if it comps well. I would not offer on this house.

They are tending to turn down anything lower then 95%, with no contigencies. They do not ever counter offer, it is yes or no.

Find yourself a really good broker. The really good deals are still ending up in bidding wars and selling within 48 hours.

Answer 2

It's not impossible in Australia 2 bedroom houses in Melbourne can average about $300,000 for an established house and $350,000 for a new house with both being on the same block (we call it subdivided) each having 1 garage and not enough yard space to properly run around in (ie a courtyard area) Sometimes you'll find even more expensive houses - in Sydney 2 bedroom units range in price anywhere from about $230,000 upwards to $500,000 just depends on the area, the age and appliances... Hard to say really a real estate would be better off valuing in person for you!!

Answer 3

Let's be a little more specific, a home that is being sold through a Realtor that is homeowner owned and is NOT a short sale, is most desirable. In most cases if the homeowner is living in the property, they have taken care of it. If it is a bank owned property, the only difference would be that no one has taken care of the property for some time and your mechanicals could need repair or replacing. These would not necessarily result in a slow closing. But homeower owned and lived in is your best bet.

Answer 4

If by bank-owned you mean foreclosure, per my real estate agent, they normally do not deal. The price listed is the amt the prev owner owed the bank. They have to recoup their loss. Look into the risks of buying foreclosures though..there are normally no disclosures and you could be responsible for leins made on the home that you aren't aware of. But all in all it costs nothing to put in a bid.

Answer 5

Without knowing the market (and EVERYWHERE is a buyer's market right now, almost).

There is no way anyone can tell you.

You didn't even mention what other homes were going for...I take it you don't have a Realtor.

Not having a Realtor, isn't going to save you anything...b/c the listing agent on the property will keep the full 6% commission, instead of paying YOUR agent 3%, and you'll have no representation.

If you have to ask that question on Y!A, then you need a Realtor.

Answer 6

I just LOVE these questions that people ask on here and then do not PROVIED ENOUGH INFORMATION to make any kind of guess.

I think you will find that you will have to put as much into FINISHING just the INSIDE as what you are paying for the house, so unless it's in a neighborhood of million dollar houses, it doesn't sound like much of a bargain to me.

Answer 7

Do you comprehend how the price of real estate varies around the nation ? How do you expect a reasoned reply with no further information ? Where I live, that house would sell for about $60,000. Now, how about where YOU live ?

Answer 8

Where is it? You would be lucky to pull 75,000 for that here, and not even that in a buyer's market. To make a good guess, we will need a little more information. What city would be a lot of help.

Answer 9

Where is it located? And we mean what part of the country. Around here, northern Shenandoah Valley, a house like that would sell for maybe $200,000 or less.

Answer 10

I like what "Landlord" had to say - that part seems similar to our part of the country (San Antonio, Texas)

BTW - Being in San Antonio, I at first thought that you put one too many zeroes in your numbers. The house you describe could be bought in some parts of town here for about $20,000 to $40,000.