We (Wife/partner/self) have found a foreclosure locally in a state of serious disrepair. It is being listed by a local agent, but in doing my research, have found that it has been on the market for well over 18 months and that Wells Fargo is holding it as an REO.
The ARV in the area is around $160K. the agent is listing it for $139.9. The problem lies in that the property need a minimum of $40K in repairs (roof, siding, doors, windows, bath(s), kitchen, gutters). It’s not a total gut, but does need a great dea of TLC to get it to market value.
Now for my question… ??? ??? ???
I would rather try and deal with the Loss Mitigation dept of Wells Fargo, rather than the local realtor, documenting to WF, all of the various and sundry reapirs that need to be made, and in the process hoping to get them to accept a much lower price ($70-75K).
Do any of the more seasoned vets on this wonderful site have any
words of wisdom for me? Should I pursue Wells Fargo, or try the local realtor first?
Contact the realtor… Conduct due diligence, figure out the price you are willing to offer the bank. Tell the realtor that you want to make an offer on the property. Its the realtor job to present all offers. The bank can only say yes, no, or counteroffer.
figure out your cost initially buying, re-habing, taxes, if flipping; 6 months etc or more, of reserves, selling fees. etc. if bank/realtor wont do now walk away nicely but tell them to keep you in mind. best advice i learned was to not fall in love with the property but fall in love with the deal. or something real close to that.
Thanks for everyones input. I have touched base with the realtor that is handling the property. Unfortunately, it was already under contract. I’ll get the next one! ;D ;D ;D
I’ll get the next one! ;D ;D ;D