Property Q&A in Ozark>Question Details

Meghan Mills, Home Buyer in Springfield, MO

Considering looking into this home. Should we be concerned that the asking price is so low? Is there potentially something very wrong in this home?

Asked by Meghan Mills, Springfield, MO Fri Jan 18, 2013

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This question was asked from this property: http://www.trulia.com/foreclosure/3102740821--Ridge-Xing-Oza…

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Hi Meghan

An asking price that is obviously lower than normal market value can certainly be an indication of poor condition. You should be able to determine this quickly by viewing the home. If not, the issue will most likely surface in a home inspection. Most contracts will give you the option to re-negotiate the purchase price or walk away from the contract if a major undisclosed issue is found during the inspection period.

It could also be a selling tactic. Pricing a home this way makes it stand out in the market. Most times this will cause multiple offers on a home quickly, and will usually end in a bidding war between buyers. Usually, if this occurs, you (and all other bidders) will be ask to put in you " highest and best offer" by a certain date for the seller to consider.

A good buyer agent can help you avoid the pitfalls. Let me know if you need one.
0 votes Thank Flag Link Fri Jan 18, 2013
The best way to determine why the list price is so low is to do a visit to the property- with an agent that is experienced- foreclosures often have a variety of issues, including mold, foundation, etc. Banks take condition into consideration when pricing a home.
If you decide to view the home, and are not already working with an agent, I can put you in touch with an experienced agent- let me know if I can help you!
Krisan Mitchell
Coldwell Banker All American
0 votes Thank Flag Link Fri Jan 18, 2013
Thank you. I am working with an agent, but a poor one. We are considering changing. Our situation is tough. Approved for 85% of 100k which leaves lots of money to come up with on our own. As this home is a foreclosure, would it be likely for the bank to drop the price if there are structural, mold damage etc.? I have heard most foreclosures do not budge on price or amount of down payment, even for first time home buyers like myself.
Thank you.
Flag Fri Jan 18, 2013
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