Looking through the local paper today at upcoming sherriff’s auctions, there is a house I would like to purchase as my personal residence. The home was bought for 347k…is listed now for 334,9k. The “appraised value” listed in the paper is 312k. The mortgage owed is 277k first 35k second.
The auction is 7/9/07. Should I make an offer now to the owner…and what should it be? Should I wait for the sherriff auction and risk losing it…or should I see what the bank buys it back at? The house was built in '05 and we REALLY want it! It’s been on the market 140 days. Help me with pricing…
How bad do you want it? What’s the most you’d pay for it?
That didn’t help with pricing. I’m asking what a good price I should offer them for that home given the situation.
Actually, I think the response you received was very helpful and the correct one.
You are looking to buy your personal residence. What are you willing to pay for your own home? If you want to lowball it and risk not getting it then you you have to take that chance. If not then you better be prepared to put your money on the table (so to speak).
No one can tell you what you should spend on your families home.
Cheers,
Brewer
I’m asking if there is a certain percentage of the appraised value that is normally negotiated with the banks, or that a bank will normally accept. Forget the fact it would be a personal residence…we don’t need the house. When negotiating with a bank on ANY home that is going through foreclosure is there a formula, or a certain negotiating starting point for ANY foreclosed home?
There is no hard and fast formula for what a bank will accept. It depends entirely on them. I’ve heard people speak authoritatively that a bank will accept 75% of the FMV, and perhaps they will. It depends on the bank. That’s why it’s called ‘negotiation’.
Luck.
OK…looked at the house. It looks like I expected it to look…not kept up.
It needs all new landscaping, including sod, tree removal in the back (poison ivy everywhere), fence, new carpet and paint throughout. The home is only 2 years old. I don’t know what the past owners were thinking. It’s on a great street, with the other homes listed between 320k and 400k.
I’m estimating in order for it to look like a 350k house that belongs on the street, it will need about 60k worth of work.
It’s currently listed at 349k, with auction in 4 weeks. Would 260k be a good starting point?
Who is going to auction- 1st or 2nd?
Not sure. How would I find out? I believe its the same bank for both.
Appraised value $312,000.00
Realtor Fee’s 6.4% $19,968.00
Hold time 6 months $18,000.00
repairs like you said $20,000.00
Attorney fee’s $31,200.00
So bank will net roughly $222,832.00 after the process that is where I would start with them right at 70%
I appreciate it. Since I’ve never done this before at this point, do I make the offer to the owners (the home is vacant)…or contact the bank directly with that offer? Should I do it over the phone or in writing?
$31000 for attny ???
wow i am in the wrong biz.
No way 31k
maybe
maybe $3100 prob. 1/2 that at best
if u look @ foreclosures posted by the counties u will see the attny gets very little
look it up !
I, too, am curious about the $31k attorney fee. How did you come up with that number, shortsalesonly?
I looked at some of his other posts, and it looks like he’s just taking 9-10% of the appraised value and plugging that in for his atty fees. Doesn’t seem accurate…