its a new construction home not finished, I mean no steps,lol or laundry hook-ups etc..we have placed an offer (and was accepted) on a wonderful 200Sq ft home with .36acres and 4Br 2Ba..and 2 car garage settlement price of 175,000 WITH a 5,000 SA too..making it 170,000 in reality...our inspection is monday and we are elated and hope after the market bounces back well have about 30,000 in equity right away. I am glad we ran from the other house,lmao

LAUGHING BUT RUN.YOUR GOING TO HAVE MORE GOING IN THEN YOU ARE COMING OUT.REBECCA,REBECCA GO BUY YOU SOMETHING THAT IS NEW WITHOUT A BILL BEFORE YOU GET STARTED.YOUR FIANCEE' HE WILL CUT CORNER'S TO TRY TO SAVE YOU MONEY ITS JUST THAT WAY! GO OUTSIDE THE BOX AND SEE WHAT THEY HAVE TO SAY...OH WHY DOES THIS HOUSE NEED $25,000 WORTH OF WORK AND ITS NEW.DID THEY NOT GIVE YOU A KEY AND YOU HAD TO GET ONE MADE.WHERE IS THE MONEY GOING....ARE YOU PICKING IT APART FOR IT TO BE THIS MUCH? I DON'T LIKE THIS AND LETS CHANGE THAT NOW I CAN SEE MONEY FLYING OUT THE WINDOWS.OK STOP IT.MAKE THIS TIP OF THE WEEK....

thanks to all of you, we have decided to forgo this property however, another question maybe some of you can answer is if we are pre-qualified for 180,000 settlement price, give or take a few thousand due to the rates going up/down, what is the max listing price we should consider as to not get out hopes up? And also what is the average offrer price for a home as oppossed to the listing price, I was told it was about 3-5% lower than listed? Except of course if its priced to sell..as most are not.

Find out if this is a 225000. house that price has been lowered to adjust for the unfinished work and if not offer enough to offset the work needed . that should not offend them

Rebecca,

Carl hit it right on the head. FHA 203k rehab loans FHA allows you to borrow money to rehab the property. The limit is only the FHA limit on a Single Family Residence, $410k. Please email me should you want specific information on it. As a mortgage professional, I can guarantee you that FHA's web site will be confusing.

Sorry, I meant 203K FHA not 403. All good advice here. I notice nothing is said about a short sale. Ask the seller's agent if there are any liens. The 199 price should include the needed work if it as obvious as you say. Why would a seller accept so much less? If you were the seller, would you? Looking at others kind of means you are not really dedicated to this one. A seller hearing that is not impressed. Better to say, We really like your place and want to buy it. Win them over, don't demean their house.

150K sounds agreeable, my friend who is a realtor (not mine though) said 125K..but Id say 150K is more reasonable..because original listing price was 225K then they reduced to 200K..we are actually looking at a few other property's before making an offer..but thanks, great info!

Start with 150K. Wait for counteroffer. Then go up in steps of 2K till 160K.

I have a client getting a 203k loan in almost exact situation as yours. Email me for info on the lender (I have three good references).

Check for 203K loans, not 403k.

I have a great 203k lender in the chicago area if you need a referral.

Best of Luck

Google FHA and look for 403 loan, for rehabs. What to offer is another question. Get someone to do appraisal, realtor comps should help tell you price today. Then discount that 3-5%. The market is still doing down. If the $199K price is close, make an offer. But most of your money will come from an FHA loan. In your area try to find specialist in FHA loans. Good Luck. Look for a Weichert office to help.