Foreclosure in Kettering>Question Details

Ashley, Home Buyer in Kettering, OH

What should our counter offer be to a forclosed home in bad condition?

Asked by Ashley, Kettering, OH Tue Apr 7, 2009

We just put a very low offer on a forclosed home on thursday (2nd). This home is listed at 99,900 and has dropped in price 2x. It has been for sale for 3 years, i am not sure if there have been any other offers. This home sits on 2 acres, which are very nice. The home its self has a foundation problem which we got inspected by 3 different people and it can be fixed for about $20,000. I think that is what scares people away from the home, but the inside is also in bad shape, we need to redo the kitchen and bath and practicly the whole home. We are not sure if the well is in good condition or the leach bed, although the city has no records of any problems. That being considered we offered 30,000- low i know, but the homes range from 100,000 to 150,000 for that style in that area, in good condition. Our counter offer comes today. I dont want to put more money then what it can be worth into it, and a forclosed home the bank sells AS-is, how do we get the house without going in the hole?

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I would total the cost of all the possible repairs that there may be in the house. Then, I would subtract that number from $100,000 and that would be my offer. I'm guessing the $100,000 figure you gave is the price that homes are selling for in the last 6 months with similar square footage on the same street or adjacent streets. Besides my experience representing home buyers purchasing investment properties as their Realtor, I am also an investor myself so please feel free to contact me at anytime if you have anymore questions.

Christina Asad Edwards
Realtor, RRS, eAgent
Office 937-573-0082
Cell/Text 937-205-4741
1 vote Thank Flag Link Wed Apr 8, 2009
You seemed to have done your due diligence as far as cost estimates are concerned. So you need to subtract these costs from say, $100,000 and come up with your highest and best offer, counter offer, then stick to it. If you get caught up in the emotion of this home, you will continue to counter until you have over paid for the property. So there is a chance you could loose this house, but then you would not be stuck with a money pit. It is up to the bank to accept what you have to offer and why you offered what you did so you really have no control over this. There is a risk when buying foreclosed "as is" properties and if you can not take the risk, then you should not invest in these types of properties for there are NO guarantees. Good luck and stand pat on your counter offer. David Toth of the Toth Team
0 votes Thank Flag Link Tue Apr 14, 2009
Update- The home is actually in Springvalley, ohio. Im currently in Kettering.
0 votes Thank Flag Link Tue Apr 7, 2009
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