I just bought a bank owned house. It doesnt need too much repair just some landscapiing as it has never been maintained.
If I fix this house and put it back out on the market, any new buyer will be able to find out the price I paid for this house through the mls/realtor. What should I do if I dont want the potential buyers to find out how much I have paid for this house.
Unless you’re in a non-disclosure state (like Texas), it’s a matter of public record. Here where I live all of the transactions in the two local Parishes are published in the Sunday paper!
In a lot of cases, if they like the house and are willing to pay what you are asking, they won’t even do the homework.
Keith
Not only that but as long as you’re selling it for the market value or below who cares what they think. If the house is worth what you’re selling it for you wont have any problems.
John
People don’t buy houses like investors do. They buy houses like they buy cars. It is an emotional decision. They fall in love with it and if they can afford it they buy it. The only thing to look out for is that it is priced right (market price). Real estate agents can’t figure out how much money you are making on the house anyway. All they will show the buyer is the nice countertops, how close the parks and schools are and the berber carpet.
Real estate agents market and sell houses; they don’t analyze the profits the sellers are making. Think back when you bought the house you live in. The agent didn’t once bring up the price that the seller bought it for or how much was in the deal. It is not in their nature.
don’t be ashamed of making a profit. I tell my buyers upfront that this was an investment property and I’m in it for the money. I haven’t found one yet who had a problem with it; or if they did they didn’t say so and just looked somewhere else. That’s fine.
Honest and Fair.
I’m with Mark on this one; just today I’m listing a house for 35% more than I paid for it just 2 months. However, when I bought it, it was absoluted trashed inside and had all the signs of enduring an extended period of domestic violence (holes kicked in the walls everywhere). After putting $8k of my hard earned cash into it (paid contarctors), it now a fresh clean house with everything the way it shoudl be; ready for new family. It’s turn-key; 2 months ago it was uninhabitable.
Good luck with it; REOs can be a great deal
Don’t sweat your bargain purchase price. If the buyer wants the house they will get over the fact that you bought it cheap.
They will rationalize that you did all kinds of things to it to justify the new price.
They will see that similar homes sold at th higher price.
Then the appraiser will legitimize it.
Relax.
Thanks guys…
can you describe the process by which you obtained it? briefly.