Elizabeth, I can not stress enough the importance of a private home inspection. Banks do not have to disclose anything about the house because they don't know anything and have never lived on the property. Since the seller really knows nothing about the property I always tell my buyers especially on a foreclosure to get a private inspector in there that is extremely throughal because we really do have no history on the house.

In regards to it being a good deal or not I would rely on your buyers agent to show you what has been selling in the area in the condition that it is in.

I hope this information helps! Best Wishes to you!

Sun Feb 24 2008, 09:21

Liz, Gordons suggestion to ask your Buyers Agent is sound. Was the 1,000 an EMD earnest money deposit or an assurance bond? In general, Dearborn requires a 10 percent bond for any repairs they require completed in the city inspection. If it is a bond, you should estimate paying around 10,000 for the repairs on the list plus any improvements or additional problems found during repairs. I suggest either getting a copy of the report and carefully reviewing or ask you agent how to include this in your offer. The report is only good for so many months. You can get it from the City offices.

There is a good possibility that Dearborn did not find all problems with the home. Please make sure you hire a professional home inspector with construction experience. A list of certified inspectors in Michigan can be found on the website below about half way down the page. Ask lots of questions.

Having your Buyers Agent complete a Competitive Market Analysis of the home with all similar homes sold will give you a range of value. Michigan requires real estate professionals to work for the home buyer ONLY under a signed buyers agency agreement. A sample copy is also available on the website below.

Sun Feb 24 2008, 06:57

Hi Elizabeth,

Are you working with a Realtor? If so, your Realtor should provide you with a comparative market analysis (CMA) that is based on the sales price of similar homes in the neighborhood. Once you have a baseline value from the CMA you can subtract the cost of necessary repairs and/or updates to determine a good offer price. Be sure to have the home inspected by a reputable home inspector (and contractors if necessary) to make sure you fully understand all of the repairs necessary and the cost to cover these repairs. A good resource for other factors to consider when purchasing a foreclosure can be found in the free report available at http://www.MIforeclosureDeals.com

Good Luck!

Sat Feb 23 2008, 18:31