Wow it is amazing how things can all DRASTICALLY change in one day. So today we were all ready to make an offer, when we noticed that the price for the home has been reduced to 146000 by the bank, a different of $20,000. With the needed amount of repairs and such, the house still seems a bit high, but I thought we would go in at a strong 136,000 with 5000 earnest money down and then up to 140,000 if need be. 140000 is my absolute max right now, given that my full time salary has yet to kick in. In any event, stay tuned and we will see where this goes, I hope all of my homework has paid off!

Thank you all, for the responses thus far. I went with my agent again to take on last look at the property this morning, and we had a really great conversation regarding the market, location, property in question etc... She looked at the contractors estimate and over the work that needs to be done in the dwelling. Having worked in real estate for 30 years, she has worked with many banks, done appraisals and is a broker. Furthermore, she does not think my contractors numbers are unrealistic.

In addition, she looked over the property and how the SF was overstated, the documentation I provided to her, as well as the floor plans and seems to think that I could probably get the property at 140,000. Having been approved for this amount for the property on a PART TIME salary (given my large down payment), I expect my income to at least double in the next week (job offer for a full time position is on the table - just negotiating some technicalities). So, I feel as if I am in a position where I could do this without any problems - especially with the time it takes to close on such a loan.

So, we both agreed to start at 128,000 and perhaps counter offer at 133000, wait for a counter and then hold firm at or around 139000-140000. Since no activity has been seen at this property since December and the amount of damage/problems associated and documented with the property, we are hoping the bank will work with us. Having done all of the research and leg work, I hope this puts us in a good position to bargain!

Bmwapplefan, $128,000 + "approx repairs" $32,000 = $160,000 for property that sold for a high of

$191,000. That's approximate repairs for a property that may have other hidden problems. Plus it has had no offers since December. WHY? What does the property appraise for? Are prices in your market stabilized, still declining, rising? Unemployment? Foreclosures?

You have a good agent it seems that isn't telling you to hurry, multiple offers, get it now!

What attracts you to this property? What can you really afford? Are you willing to accept all the what if's?

I'm just a dumb Non-Pro but based on the info you've provided so far your offer is not a low-ball offer rather the price set by the Bank is outrageously unrealistic.

You are obviously not bidding against anyone else at the moment so talk to your agent, document, organize and validate your info/conclusions and offer what it is worth to you according to what you can afford. With what info you've provided so far I would say it's way less than $128,000, but that's just my opinion. Give everything you've verified negative to the Bank with your offer and see what they say, you can always offer more later if that's your wish.

If your agent is a Professional as you say then be loyal let her know in no uncertain terms that you have a relationship of Trust and she can count on you being totally honest. Let her know that by attaining your goals she will have a supporter, reference and future client in any other RE situation where you may need her services. Reward her Professionalism and brag her up any who need the services of a Pro.

RE license holders are aplenty, Professionals are rare.

I wish you the best of luck in finding what you want
Just a Non-Pro, Dunes ............... Blaison did put it well and in a much less wordy way than I did. TU

You have two options:

1. Ask you Realtor that has 30 years experience and who is working in your best interest.

2. Hire an appraiser.

Trying to cloud the process by asking uninformed advice when you have a seasoned professional at the ready and waiting to assist you is not in your best interest.

Wow! You have researched everything about that property and mentioned all the fault on that property!! Well, you need to sit down with your agent and discuss all these things which you have mentioned over here and then based on her advice, you have to think what offer price and other terms should be in that purchase offer.

No one can say whether its a low ball offer or not unless you submit that offer to the lender. If they reject that offer then you need to write a better offer if you want it other wise move on to look for another property, don't waiste your time on just 1 property with all research, there are lots of other properties are availaable to choose from, so take a try with whatever number you and your realtor comes up and then decide on your next move....Good luck.

Lynn,

Yes I had an agent with me both times, and we are both going again today to take one last look at the property. She has over 30 years experience in real estate, and has been very knowledgeable and such so far. In addition to the problems that need correcting, I have also dug up other information regarding this property and the square footage. I obtained the original floor plans for this unit, which calls for 1650 square feet. The property is being advertised with 2000SF living space, far higher that what the plans call for.

In addition, more research shows that other problems with the property exist that may result in significant costs to the owner of the dwelling. Sewer lines appear to be sinking, as pointed out in Council meeting minutes from December of 2008. In addition, the sewer authority was found to have no responsibility for the sewer lines until hitting the main pipes about 400 yards away, making individual homeowners responsible for any damages sustained to the sewer system. It remains to be seen when repairs for the sinking sewer pipes will commence and how much money owners will be responsible for paying (the homeowners association may pickup the bill but who knows?)

Furthermore, this property was listed as being 2000 square feet. Actual plans for this particular model (which I obtained) show that this unit is merely 1650 square feet, a difference of 350 square feet. Floor plans for this model and others in the development have been obtained by me. This property also has the “Alternate 2nd floor bedroom plan” which eliminates a master bedroom/bath on the first floor and only has 2 bedrooms instead of 3 like all of the other units. This unit also lacks a full basement (has a crawlspace) that most other townhomes in the region contain. Needless to say, many of the units in and around this area do not compare to this home (as this home is significantly smaller and has little to no upgrades/options).

Being a two-bedroom, 1 ¾ bathroom unit, it is difficult to determine a fair market price for the unit, as comparable homes in this area do not exist. Other units/properties all have 3 bedrooms, including a master bedroom and master bath in addition to a full bathroom. Other comparable townhomes in the development contain 2100 or 2300 square feet of living space, much more that what is contained in this particular unit and have upgrades and improvements (I have the plans for these units). Lacking a third bedroom and a 2nd full bathroom, it is reasonable to assume that the value of this property is to be valued significantly less than comparables in the area.

With this said, the bank is asking 165,000 right now for the property and it definitely needs at least $32,000 as outlined by the contractor. Would a lowball offer of 128,000 with $5000 earnest money be unrealistic?

As Lynn noted, if you saw the house with a realtor, that would be the person to go to for assistance. If not, you should consider getting a good buyer agent to help you.

To answer your question... you should offer what you feel comfortable offering. Keep in mind that with a foreclosure, it could take a bit longer for you to get an acceptance/denial of your offer, so your best bet is to go in with the amount that you feet comfortable paying for the house. Another suggestion is that if you have your pre-approval letter in hand and put in a low ball offer, you might want to consider giving a higher deposit to show that you are qualified and very serious about the offer that you are putting in.

You indicated that there are no comps to compare it to. I am a realtor in the Scranton area and I would be glad to assist you with this. Not knowing the property I cannot look for comps on our MLS for you. If you would like to call me at 570-614-6341, we can go over the details and talk more in depth. Good luck to you in whatever decision you make.

Angel Lubeck, Liberty Realty & Appraisal Services

Good morning Apple Fan,

You mention that you've seen the foreclosed property twice. Were you with a real estate agent? Can that agent help you with your offer? It's hard enough purchasing a regular resale listing, but purchasing a foreclosure can entail bank addendums that you need to clearly understand before you sign on the dotted line.

If you don't already have an agent you admire & trust, I would suggest finding & using a good agent for assistance with this purchase. Your agent should be able to help you with the numbers, too, and submit a good offer that's not too high, but high enough to get you the property.

Good luck!

Lynn