I’m ready to buy a home and found a bank-owned prop. through my realtor. The bank wants it off their list by year end. They’re listing it at it’s assesed value, 293,000 but the listing agent thought I could get 10%, or 30,000 off that price. I think the repairs, all cosmetic, would come in just under 30,000. It’s in a nice nieghborhood where homes are valued between 290-330,000. The repairs include roof (maybe in a few years), new carpet and paint (int. and ext.), landscaping, a new fence. It was built in 1993. This is my first house. What would be a good deal for me?
Actually, no, this is not a great deal…not unless you live in a “super-heated” real estate market where property moves in a couple of days.
$30K sounds terrifically expensive for the repairs you’ve noted…
Could you provide a general area where this is so that folks local to that area could chime in?
Keith
I could not agree more with your Realtor now is the time to buy REO’S before year end They are trying to clear out the year!
Do you have the funds to do repairs?
If not will the bank allow for an allowance for you to get the funds back for needed repairs?
There are a few things I would be asking for starters…
Also what are your plans for the house??
I also agree with keith 30k is high!
well, that’s just my own uneducated guess. I’m guessing a roof would be about 7,000 new carpet about 10,000 and paint in and out about 7,000, about 1,000 for a new fence, and 5,000 for landscaping and whatever else I wasn’t thinking of. But my realtor said he’d get estimates if I was really interested. This would be our primary residence. It’s in CO. I don’t know, maybe the bank would take 240 or 250. But it is in a nice neighborhood.
Your estimates seem too high especially the carpeting. The carpeting should be about $3000 for a good carpeting and could be as low as $1000 for cheaper carpet. Of course depends on the size of the house.
Banks don’t want to own property so make a low starting offer. I think the listing agent is right with the 10% lower offer but I might try 50,000 lower first. They may counter but it will be a starting point. You can even write up the offer that they (the bank that owns the property) would carry the loan at ??%. Your low offer may look beter to them because they will make interest on you. You could even ask for a roof cert. to guarantee the roof will be good for a year. We did this on one of the properties we bought from a bank and they gave it all to us. Remember that everything is Negotiable.
Good luck
Well Longmont huh!!!
I am in Denver. Carpet installed $7.00 per yard (for nice carpet 6 for cheap)
Paint 4k in and out hired done (3000 s.f. house)
Fence 1,500 (7,000 s.f. lot)
living in your own home PRICELESS
for everything else there’s MasterCard
shannie is this a home to raise your family in or an investment property?
If you are going to live there, I would check the fix up numbers but if you love it the deal is fine, if you are going to invest in it, the deal needs some work.
this is our first home, so yes it’s a primary residence.
My realtor said about $25/ sq yard- you think that’s too high a guess. So if I was looking at it as an investment (I mean of course I’d like to make money on it if I sell it in a few years) and it’s just those cosmetic repairs I mentioned plus the roof, any ideas for a good offer price?
Perhaps your realtor’s brother is a “carpet guy” and will give you the new home buyer “special”…I would drop Robb (reoconsultants) a note and he will probably tell you (off-line) who to call…
I concur with the others…$240 - 250 max if it is a private residence that you like…
Keith
There was another response I didn’t read before posting mine.
So, maybe my estimates are a little high. That’s good. So If I can get into the home for 240,000, do you think the bank would lend me in excess of the purchase price to do the fix up work? I only have enough for 5% down plus closing costs, but my credit is excellent.
If the appraisal comes in good, they should…
Keith
Kieth,
I don’t get it. If it’s got a value of 293,000 and needs about 15,000 in repairs (according to these other posts), how is 240-250 still not a good deal? Also, are you saying that $25/yd is too low a guess for the carpet? How much of a discount should I look for after repairs? Obviously I’ll have estimates done before I make an offer?
No, I think you didn’t follow. If this is for your home and the property appraisal comes in for, say, $290K and you offer $240K and get it, it could be a good deal (you still need to do your due dilligence, etc.)…there would still be enough equity left to take care of the carpet, the painting, landscaping, fence, etc…
Your realtor is not in the game as far as best price on carpet…talk to Robb, I almost guarantee that he will give you the name of a carpet wholesaler in the area that will do it for at least 1/2 that.
I would hold on the roof until it really needs it and then take a second if you absolutely have to…
Keith
I just called a carpet place and they confirmed my number of about $20-25/sq yd installed. It’d be around 5000 for the carpet. then if the paint was another 5000 and 7000 for the roof, say 20,000 max…oh I don’t know. maybe I should just go with another house I’m looking at that doesn’t need anything but I wouldn’t be getting a deal. Maybe this bank owned one isn’t a deal either- I’m not experienced enough to tell.
Who is Rob?
Robb = “reoconsultants” a frequent poster here…
You’re not going to get a decent price by calling a “carpet place”…but you can pay $25 a yard if you chose to, I suppose. Personally I would prefer to spend $10…but, it’s your money.
Please go back and read this whole thread…Robb tells you he’s in Denver (37 miles from you, ±) and that he pays $7 a yard installed for nice carpet and $6 for cheap carpet.
Keith
Ok, Rob, how do I get in contact with you? Are we aloud to post phone #'s here? I’d like to find some cheaper way to carpet of course. I did get an estimate on the roof, and it was $4,900. Does that sound about right? Does anyone know about pipes being turned off and what that might do? They’ve been turned off since May, so it’s not like it’s been cold or anything. Has anyone bought a rehab with pipes turned off for a time and what problems have you run into? Also, any ideas what a garage door opener costs to replace? Or where to get a “deal” on one?
Oh yeah I know right where to go for that as well! LOL
My sisters pipes in her house had been turned off for awhile, and once they moved in,there were all sorts of problems. I don’t know if it was a coincidence,but it doesn’t seem like it. Good luck to you…
The bank should allow you to turn on all utilities (at your expense of course) for a day or two to inspect.