I found this reo that is at least 20,000 in repairs. It is in a nice neighborhood where homes are 100,000 in a town where you can foreclosures for 50,000 all day. They have reduced to 45,000. The tax value is 90,000. Would you guys buy if you could get for 35,000 and fix up and resell???
Ruready - I believe you missed the most important number in your post. How much will you be able to sell the house for when you are done with your rehab? If you pay $35k, and add the repairs cost ($20k) + your holding/marketing expenses + your selling expenses (when you sell the house) + your profit + margin for error, would you be at or below the price you believe you can sell the house for?
Please remember that tax value and how much you can sell the house for is two different things. If you don’t know that number, I would suggest you find it.
Good luck! Keep us posted!
And if you do get into it for less than the assessed value, I would contact the county assessor to re-figure things. You may get the taxes lowered on it.
Two re agents said they could sell after fixed up for 100,000, so would you buy it if they toold you that?
in your 1st post you wrote you can get foreclosed houses for 50k all day like that.
ask for some recent sales data from those RE agents. Do your research listening to an RE is like listening to a used car salesmen.
Ruready - It is good that you talked with 2 re agents… Two is better than one… However talk is cheap… They may be telling you what you want to hear so they can get your business. Some agents would tell you that your house is worth more than it is only to get your business and once they have it they will tell you that the market is getting hard and that you should lower your asking price…
So don’t take what they say to you as face value… Ask to see comps and be very conservative - don’t use the average number… Use the lowest number… :O)
Have a great Sunday! Good luck!
in your 1st post you wrote you can get foreclosed houses for 50k all day like that.
ask for some recent sales data from those RE agents. Do your research listening to an RE is like listening to a used car salesmen.
Not in this area though. The comps are all around 90,000 to 120,000. I can by 50,000 all day and sell for 60, to 80,000, but not on this street. I was thinking it would be a good rehab to start with if I could get money to fix up because its such a nice area, alot of others are in not so nice neighborhoods. I appreciate you opinions soooo much, keep them coming as I put in offer of 35,000. They are asking 45,000 now as its in bad shape but I haven;t heard back. Thanks
Goodluck