Home Buying in 29405>Question Details

Jane, Home Buyer in Charleston County, SC

I made an offer to pay the listing price in cash (full amount). Home being sold AS IS, property in need of repairs (broken windows/heat pump

Asked by Jane, Charleston County, SC Sat Jul 10, 2010

stolen), located next to 3 city condemned properties and the neighborhood is kind of tough (almost 100% low-income/African American population). The original listing price was 6% more. Is there a chance the bank will accept my offer?

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6
Depends on whether the bank already owns it or if it's still owner by a person. If it's already owned by the bank, I'd say you have a done deal. If it's a short sale, it depends on how well it was priced by the seller and the realtor. If they priced it too low, the bank may not take it.
0 votes Thank Flag Link Sun Oct 31, 2010
Jane
There is a good chance you will have an acceptable deal from the bank. Banks are not in the business of selling property and they are especially not in a position to hold on to one that is in disrepair. Banks can not hold on to large amounts of inventory without risking loosing their FDIC status. You can learn more at http://www.fdic.gov/buying. With this information at hand you can position yourself to find good deals for sure! You can make some really good real estate investments, but be careful because you can get your self into a great deal of trouble as well! You must do your due diligence with each property you consider. An "as is sale" is just that! The bank is under no obligation to ensure that the home is structurally sound. There may be considerable hidden damage as well as what is visibly apparent. You will need a home builder to help you with the pricing of these repairs. One who can give you a fixed price for the repairs is a must! This way you can make an informed decision. If you need some assistance, I am a General Contractor as well as a Realtor and work with many investors like yourself. If you would like my help please give me a call 843-296-5006 or email me at jdt@scpropertypros.com
0 votes Thank Flag Link Sun Jul 11, 2010
My biggest concern is did you have an inspector/appraiser to make sure you didn't pay more than you should and got into more than you had not realized? I like to study an area at night and on weekends to see what's going on. Next I like to get police statistics from that area. It's obvious why the heat pump was stolen. If this is a rental you want to place tenants in, you may have a problem. If you plan on moving in with a family, is it worth the risk? We always say in real estate.....location, location, location! My next words to you would be "caveat emptor" (buyer beware). Make sure you aren't the one making the mistake. I hope it wasn't a crack house!
0 votes Thank Flag Link Sat Jul 10, 2010
Dear Jane,

Congratulations on your offer!

First I must say that if you have an agent, he or she would be the best person to guide you. That being said, there is a great possibility that the bank will accept it if you are the only offer on the table, if the bank has been holding on the property for a significant period of time, or if your offer is close to the number suggest by the Broker Price Opinion (BPO) that was done on the property. I am familiar with foreclosed properties in that zip code and know that the inventory is pretty healthy. This should be in your favor.

The agent that posted prior to me made mention of the potential for a 203K loan which is great advice. If you don't have an agent, I would be glad to help you if you need assistance. Feel free to contact me at 843-442-2219 or by e-mail at cflowers@woodsflowers.com.

Best regards,

Cheryll

Cheryll Woods-Flowers
Keller Williams Realty
cflowers@woodsflowers.com
843-442-2219
http://www.woodsflowers.com
Web Reference: http://woodsflowers.com
0 votes Thank Flag Link Sat Jul 10, 2010
Hi Jane.

In our local real estate market, if this is a bank-owned property, and you made an all-cash full-price offer, "as-is", can close in 30 days - I'd say chances are excellent that you got the deal! It's a bit unusual to make a full-price offer, especially cash/as-is/bank-owned property. I hope you're working with an agent to help you negotiate through this process, and make sure everything works out for you!

Best of success to you in your new venture!
0 votes Thank Flag Link Sat Jul 10, 2010
If the "bank" actually owns the house (and it's not a pre-foreclosure short sale) they probably will get offers "above" the asking price and ALL CASH.

Most bank-owned properties are priced so that multiple ALL CASH offers will come in above the asking price.

Also if you are getting a mortgage, make sure you get an FHA 203K Simplified approval letter. FHA mortgages require a house to be in good condition but the FHA 203K Simplified allows you to have those required items fixed "after" closing as long as they are not structural type repairs and it costs less than $35k. Bank Asset Managers don't like to take a chance on a buyer getting a mortgage--unless it is a 203K.

Hope this helps.

Alma
0 votes Thank Flag Link Sat Jul 10, 2010
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