I am new to the world of real estate and need some advise
Iam interested in a property that is bank owned for the past 6 months from what I can gather according to the tax collectors website, the asking price is 169,000 the house sold for 400,000 on 11/2006 and was foreclosed on 7/07
The condition of the house is in need of repairs from what I can see it looks like the previous owner started some repairs (plaster on walls and ceiling unpainted)
The house: 3 bedroom 2 bath 2 car garage on 3 acres in south florida.
I would like to live in this house for a good 3 to 4 years. I would assume a market rebound by that time and I would be sitting on a pretty good piece of property.
First thing I would do is probably get an inspection of repairs needed and based on that I would know more or less what to offer.
after that I need some advice on how to present my offer to the bank
and any other advise would be appreciated.
Call up your local friendly neighborhood REALTOR and ask them to show you the house and make an offer for you. It’s probably already listed on the MLS and that’s what you’re going to have to do anyway.
Okay I’m in the right direction I have a friend who is a realtor he was the one that recommended the inspection for repairs and he will run comps but he hasn’t been a realtor that long so thats why I have come here for info from the pros
It is listed on mls this is what it states
Corporate owned, sold as-is with no warranties by seller or seller’s agents. Buyer to pay doc stamps on deed. Rehab started by previous owners, but there’s lots left to do. Need to see it to believe it. Good sized lot, dead-end street with no through traffic. Easy to show.
There is no for sale sign on the property or lock box
I am trying to figure what offer to make on the property
I would be more concerned with how you are going to finance the property. If the house is in need of repairs do you have the money to do them yourself or do you need a mortgage that will cover these costs?
How is your credit? If your credit is good I would structure my first offer to the bank with them taking back the paper and providing the cash to fix the property. They may not be willing to do this and if they are not the offers go lower.
My general rule of thumb is that if I am not somewhat embarrassed with my first offer it was too high. Go in low you can always increase your offer. With REO property you will usually get a counter offer.
Let me be totally blunt here. No offense meant, it just saves time.
Frankly, you’re not ready to do this deal. Not even close. If you have to come here to determine HOW to make an offer, then How MUCH to offer, buying a property should be the furtherest thing from your mind.
You need to learn the basics of investing first. Then you need to study your local market area to determine what’s selling, what’s not, and how long it takes to sell. Finally, you need to study those values closely and learn what a property would sell for, more or less, in your given farm area. That way when something does come on the market that you’re interested in, you don’t have to rely on outside numbers to make your initial offer. You can use your knowledge as a starting point.
If you have a realtor, then he should be pulling comps for you and get a good idea of the after repaired value. The house has to be habitable fore the bank will finance it. Are you going to do the work yourself or hire it out? If you have to hire a contractor, have them go with you when you see the property and give you an estimate for repairs. If you do it yourself, get educated on the cost of the materials you’ll need. You can’t put in an offer on a house without know how much it’ll cost to repair. Just because someone paid $400,000 before means nothing. Perhaps he paid too much for it and got in trouble. You HAVE to buy this property low enough to give you some equity AFTER the repairs are made. Appreciation should be the icing on the cake. Don’t look for appreciation to bail you out. You have to able to afford this purchase & rehab from day one. Your Realtor should be ale to help you. Even if he’s a newbie.
for starters the previous posters have provided very sound investing insights…
that said, subtract ego & emotions from the equation and really think about if you can and want to deal with the potential STRESS of a rehab property for one… secondlyy in s. florida there are no shortages of properties selling way below value that don’t need ANY work…
go buy one of those as your first deal; one that needs no more than paint or & carpet - it will make life a lot easier and will take much less time n effort!
I would also buy your realtor friend lunch and tell him that on this first one you gotta go with an expert… there are plenty of modern day enemies who were once best homies due to real estate… trust me on this one! so find an area foreclosure expert online (use google - foreclosure expert in s. florida)
lastly until you become a walking MLS for an area or community NEVER even think about what your potentail offer should be without seeing a property FIRST! this will save you time and keep your head clear…