Looking4value. Just in case Anna does not see this post. 1770 Baines is not bank owned. It appears owner just refinanced in May and there is no indication that the property will come on the market any time soon. The same owners have owned 1770 Baines since 2002 and the fact that it sold for $441,500 in 2002 is not relevant to the discussion of current value.
1800 Baines, a property with the same square footage, is bank owned. Chase took it back in May of this year. While they took it back at $329,000, that does not mean that they'll put it on the market for well below current market value as doing so can hurt the bank down the road if they take back another house in that neighborhood. If they dilute values in the neighborhood by selling too cheap, they not only hurt the community, but also their own chance to sell other homes at or near fair market value. Obviously, the market value of a bank owned property is already somewhat discounted just because it's an REO. The other reason why they at least try initially to get fair market value is because many owners who lost their homes to foreclosure are still responsible for the junior loans they took out after they purchased as the foreclosure by the first only wipes out the junior lenders' security interest, but it does not eliminate the underlying loan. When the first takes the property back and sells it for more than what was owed to the first (loan plus cost of foreclosure), the difference of the sales proceeds and what was owed to the first should be paid to the holder of the junior note, which will then reduce the liability of the borrower. I hope this explains why comparable sales data are relevant even if the bank took the property for less than what comparable properties are going for in that neighborhood.
Ferdig Real Estate Solutions
I have a realtor in AZ that will walk a neighborhood even in the middle of the summer if they have a customer that is looking for a home in a specific area. She will do this and she gets listing appointments for homes that do not fit the buyers needs, she is able to provide CMAs to people that are unfamiliar with what their home is worth, and she will pick up buyers that are currently renting. Could you find a realtor that will do that for you in Sacramento, I don't know; maybe you could both walk a neighborhood and determine if their is a home that is available. If you have not selected a realtor I suggest you talk to one and perhaps suggest this idea, right now thinking outside the box is critical to survival but so is working smart. Good luck with your search, if I can be of assistance please let me know.
Licensed Loan Originator
Citizen's Choice Mortgage
You can always approach the owner directly to make an offer, but it's good to be represented by a realtor because it can save you quite a bit of headaches. Our job is to make sure you are protected from every possible angle, and when you're making a purchase for hundreds of thousands of dollars I think representation and experience is a must.
Also most lenders will have requirements to get the loan done which are done on forms and procedures that Realtors specialize in.