What would you guys offer on a foreclosure house that bank is asking 11,000 for and been a foreclosure for 262 days? It has4 ft of water in basement. somone had asump pump but took it when foreclosed. Please give suggestions of what to say and offer to bank. Arv would be about 40,000. Would 5,000 be a good offer and how much would they be coming off asking price at bank usually? Any help would be appreciated. :help
What repairs are needed? We don’t have a clue what you should offer if we don’t know what needs to be done to the home. If it needs $30k in repairs its obvious that even $5k is too much if the ARV is $40k. Let us know.
Off the top of my head though I can tell you the systems that may be affected by the water. HVAC if it’s down there, electrial, h/w heater if it’s down there, etc.
I’m sorry
I did see the water heater floating around in water. It needs about 15,000 in repairs. Thanks!
I don’t think I would touch this one. How did you come up with 15k? Is the basement finished? How is the rest of the house? 15k sounds low, I don’t think I would take this house if thry gave it to me.
why is the basement flooded and will the sump pump take care of it seriously or was the sump a bandaid over a gaping wound? i wouldnt touch this one either without further due diligence.
get a contractor in there and have him give you a good estimate. It might be just a pump thing. The main concern would be a leak in the walls of the basement where you would have to dig around it from the outside to treat it.
The thing you would have to do is pump the water out (easy job, with a sump pump) clean it out (could be more difficult if mold has set in) long term water damage and the like - and find out what caused the leak.
Sometimes the basement needs to be waterproofed, which can be a huge job. Sometimes it is a simple plumbing fix. Sometimes it is a drainage problem which can be fixed for a couple hundred.
A lot of people are horrified over a flooded basement. While it could be bad, many times the fix isn’t that difficult. But the others are right, you need to get some contractors who have experience working with wet basement problems to see what they have to say.
As far as your numbers - if Repairs are solid at 15k The numbers look like this
ARV $40k
30% profit ($12k) - $28k
Repairs ($15k) - $13k
Other costs (selling, HML carrying costs, costs of utilities and taxes while repairs made, etc) ???
If your soft costs - closing costs - selling fees and carrying fees will be less than $8k - AND your cost of repairs including the cost to fix the basement are solid with some fudge factor in them - then $5k would be okay. But you won’t have a lot of room in case you open the house up and find you have to do more work you weren’t expecting. So again, it epends on how sure of your numbers. If you are sure, then go, if there is any fudge or doubt, get your sharp pencil out and redo the numbers until you are sure.
Don’t be afraid to walk away.
My husband says he could fill in basement or seal around bricks, dig around it with his bobcat and build up around the house, whtever it needs It sits in a very low area if thats all it is. I will get it pumped out and estimated. It needs ,paint ,windows and carpet. We have so many spanish families with no where to live that pay 350-400 A MONTH FOR CONDEMNED CONDITIONS here that , i THOUGHT IF i BUY IT FOR 5,000 and fix up for 15,000 and rent for 450.00 a month and I borrowed money w/rehab loan w/ no money down I could come out okay by havimg it paid for in 4 years and not spent any of my money. ?? Is that thought floating around too much??