Pat Scrabeck, Home Buyer in Goodyear, AZ

I made a offer on a bank-owned property without consulting my family. Since I am 68 they think I need to ask them for everything.

Asked by Pat Scrabeck, Goodyear, AZ Fri Dec 18, 2009

Anyway, they were quite unhappy with the house--needed to much work, too old, too dirty, etc. I got scared and withdrew my offier. My question is--if the house is still there in January can I rebid at $5,000 lower than the original offer. It has sat for over a year and there have been offers but they back out like I did.

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Answers

4
Quick answer: Yes.

Of course you can rebid.

Longer answer: would-be investors (at any age) tend to run into a lot of nay-sayers, generally beginning with their families. That's not to say they don't have your best interests at heart; I'm sure they do. But people have an inbuilt resistance to things they don't understand or that they haven't done.

So, here's what you do. Assemble a "team." That means a Realtor familiar with the process (you may already have that) and who can tell you what the house would be worth once the work is complete.

You may need a lender. Get some recommendations from your agent. If it's going to be your primary residence, look into 203(k) loans--they're FHA loans that bundle the purchase price and the rehab cost.

You need an accountant. Look into your eligibility as a "first time home buyer" for the tax credit. People who haven't owned a primary residence in 3 years may qualify. AND people who've owned a home for 8 or more years and lived in it continuously for 5 or more years may qualify. Here's a link to the IRS web site: bit.ly/HomeBuyerTaxCredit

You need a construction person--someone to give you a good idea of the repairs the property needs. If you're going to be living there yourself, you know what you'd like and what you wouldn't. If you're planning on reselling it, consult with your Realtor on what amenities and improvements will best help sell your home. And if you're planning on renting it, again consult with your Realtor but don't overimprove the home. Rehabbing for rental is quite different than rehabbing for a sale.

The fact that the house needs too much work, is too old, and too dirty is great. It means that those same factors will turn off (and have turned off) would-be buyers. There are plenty of things that scare off people that are really easy and inexpensive to correct. So, that's why you need a contractor to tell you what things will really cost.

Finally, in today's world, 68 isn't too old. You may have another 10-20 years of vigorous activity ahead. (Hey, my uncle is 94. He plays tennis three times a week. He just wrote a book. You're barely getting started!)

So, you assemble a team. That, in itself, will help offset the criticism and negativity of your well-meaning family.

Go for it!
1 vote Thank Flag Link Fri Dec 18, 2009
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
Of course you can go back in and offer less--however, do enlist the help of a Realtor--you need to know what similar properties recently sold for in the immediate area in order to make an educated offer--couple that with the repairs--whether cosmetic or extensive. Keep in mind not all foreclosures are bargains and some do sell over list price.
0 votes Thank Flag Link Fri Dec 18, 2009
Sure,

You are the offeror and you need to offer what ou think it is worth. I would suggest you consult a licensed professional so they can estimate the fair market value for you. They should be able to give you a range (pristine to lots of work) I'd also encourage you to conceder Structural, functional and cosmetic issues. A dirty home can be cleaned, walls can be painted the color you want and flooring can be cleaned or replaced. During the inspection period, you hire an Home Inspector. They give you a report on all the functional and structural issues. Then you get bids by contractors so you know what it will take to correct the problems.

Let me know if you need referrals.

Mike
Realtor
Realty World Superstars
(623) 698-5264
0 votes Thank Flag Link Fri Dec 18, 2009
Certainly you can. I would recommend you get current comps at that time. If its a bank owned home chances are it needs work. You should take that into consideration. Good luck.

Rich Lecinski
Long Realty Company
Tucson, Az 85704
520-834-4663
0 votes Thank Flag Link Fri Dec 18, 2009
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