Home Buying in 06410>Question Details

Helmethead, Home Buyer in 06410

Is there a formula for figuring out the discounted value of a single family house that is listed as affordable housing as opposed to non restricted?

Asked by Helmethead, 06410 Sun Jan 1, 2012

The house is a HUD foreclosure meaning closed bid, online auction, open to owner occupants only. We are trying to gauge the actual value of the home. It is listed at $260,000. Town assessment is $184,000.

I personally think that $260,000 is a fair value without the restrictions.

Can anyone help me shed some light on this?

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Answers

5
Ron Thomas’ answer
Are you trying to do this yourself?
HUD Foreclosures require a Buyer's Agent; HUD is trying to protect you.
Your Realtor can answer most of these questions, and their services are free to you.
and they can do a CMA to determine the Market Value of the home.

HUD is pretty thorough, they are probably close to the Market Value at $260, but most of the HUD sales I have seen have gone at or above the HUD Listed price.
You are protected because, if you offered $270 and the Appraisal came in at $260, you could back-out, due to your Appraisal Contingency.

Don't worry about the Assessed value, that is not a solid guideline.

Good luck and may God bless
0 votes Thank Flag Link Sun Jan 1, 2012
Make sure a FHA Ammendatory clause is part of your offer
0 votes Thank Flag Link Fri Jan 11, 2013
Happy New Year and that you for answering.

My issue is that this house is CHFA low income housing and has certain restrictions regarding income and sale conditions. How do these restrictions affect the fair market value? What kind of discount can be taken into consideration considering the limited pool of potential buyers (now and in the future)?

Thank you in advance.
0 votes Thank Flag Link Sun Jan 1, 2012
Since you have the listed price, assessment is 70% of market value which is decided by an independent source. So since assessed 184,000, it appears the price is not far off. Problem is I am not an agent in Cheshire and do not know the market or location of property. Also, do not know when Cheshire was last assessed.
Condition of property will also determine value as well as last sales.Make sure you do your diligence at Town Hall as Well. 70% of 260,000 is 182,000. Again, if you are local stop at Town Hall, I'm sure they will be very helpful.
Good Luck
Web Reference: http://candylipirahomes.com
0 votes Thank Flag Link Sun Jan 1, 2012
The town assessment is only a guide to the value of the home. The assessments for Cheshire will be redone in 2012. The neighborhood may add some value or discount it. The condition of the home inside and outside should also help you determine the value.
There is not a formula.
0 votes Thank Flag Link Sun Jan 1, 2012
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