The other issue is...do you have a house to sell first? I would not waste your time writing an offer unless it can be non-contingent on selling a house first. The banks will not even look at this type of contingent offers. They need an immediate buyer, not one that might happen in 6 months to a year as your house is trying to be sold. Not to mention that you have more buying power when you do not have to make an offer contingent on selling a property first.
I hope this information helps! Best Wishes!
I purchased my 10 acre foreclosure with 3 year old 2,035 sq. ft. home, with 2 1/2 car garage with horse barn, pond, stream, even 11 deer all for 50% off the tax value. This home came with a stone natural fireplace, central air, we love our second home!
There is more to getting a good deal on a foreclosure than just the price. You may want to check out the Free Report available at http://www.MIforeclosureDeals.com There is a lot of good information in the report to help you be certain that you end up with a good deal not just a low price. As some of the previous answers mentioned the best thing to do is to have a Realtor working as a buyers agent help you evaluate the particular property. Be sure that the Realtor you pick has experience dealing with foreclosures, there are many issues that you need to be aware of when dealing with foreclosures.
If I can show you one example of 70% or less, can I stop my search! (LOL) A home listed for $449,900 sold for $250,000 on Union Lake Road in Commerce Township. Something like 55% of list price in this situation....
Send me your email address. I did a quick comparison for Oakland County over the last year showing list price vs. sold price. What this list does not show is the property re-listing at a lower price, which would show how much the Bank "wanted" to sell the property and what a Buyer was willing to pay. The 70% figure was communicated to me by fellow agents. However, the .pdf I can send you does show what Bank Owned homes have sold for in relation to the corresponding listing agreement.
I am in agreement with the other Realtors comments. Every home is a unique situation even as a Foreclosure. If you have a Realtor, they are your best source of offer strategy.
OK how about 20%?
Just curious I have read the majority of opinions here have been that there are not 30% discounts to be had. Nor 20%. Could you show some examples? thanks again.
How much money will they lend with or without the sale of your current home?
With the stricter guidelines, will you even qualify for a mortgage?
If the property does not meet their guidelines, will they allow a construction loan at a higher interest rate until the home passes inspection and can be occupied?
How much work needs to be done to the home you're asking about? Are you able to do the work or will you need to hire contractors?
All of these things effect your ability to make an offer. Negotiating from strength will always get you the best deal on any home. I suggest you look at this article to see the types of homes offered and potential return on investment. It's a little dated but gives you a good overview of options.