I am the broker for a local bank, I list all their foreclosures and I work with several other local banks. I know the foreclosure game pretty well. In my opinion for 380k you can buy multiple newly constructed foreclosed homes with no need for repair or you can get incomplete homes and finish them out. This has worked for many investors. Contact me if you are still in the market. firstname.lastname@example.org or 832-865-7228
Get a Realtor to run a CMA on the property. Find out what it's worth. If it needs repairs that aren't reflected in the CMA, subtract the needed repair costs from the CMA. So you'll end up with what the home is worth.
Then, pay no more than the CMA. Note: I'm not saying OFFER no more. I'm saying PAY no more.
How to determine the initial offer: Take the LOWER of the value (as calculated above) and what you can afford. Offer less.
For example: Let's say the CMA comes back at $370,000. You can afford $380,000. The lower figure is $370,000. Offer something under $370,000. Maybe $355,000. Your Realtor can help guide your strategy on this.
Second example: Let's say the CMA comes back at $390,000. You can afford $380,000. The lower figure is $380,000. Offer $380,000 or less. (And pay no more than $380,000).
Again, within those parameters, your Realtor can suggest how low you might go.
Hope that helps.
You just have to get with your realtor and see what is appropriate for this situation. It's tough for us to tell from this end with only one of many numbers to consider.
Look at recently sold homes and then discuss with agent where to come in. I will tell you go in highest and best out the gate. Bank owned homes these days often do not give you a second chance. If they do, you can always stay with your offer. More often than not, today... theyt do not counter, they just accept one of the offers.
Long Beach, CA