Home Buying in Texas>Question Details

Sq, Other/Just Looking in Texas

there is a foreclosure I am considering making an offer on. It was first listed at $160, then $140 and now

Asked by Sq, Texas Sat Apr 4, 2009

reduced to $130. It has been on the market 70 days. What would be a good offer- I am thinking $110, but not 100% sure.

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SQ the first thing you need to figure is what is the home worth in todays market as is. When i value houses i put three values on it, wholesale value is what it is worth if it had to sell today, retail and what it is worth as is say in a 90 day time framd and probable saloes price which is teh median of the 2 values, which represents a 30-45 day sale price. As an investor you want to be be able to purchase between the lower and medium price. If you are buying it to live in you would be willing to pay more as it may have a geature that is more of a value to your family and therefore you are willing to pay more. A good buyer agent can show you what the 3 most similar properties have sold for in the last 6 months to get you value. What not to do is base you offer on assessed value, assessments are way of actual value. You should also avoid trying to offer a certain percentage off asking price, asking price is just that, asking.... some banks price their properties below market value to entice multiple bids, others price it at retail and are willing to wait it out. Come up with your own value for each property, it will assist you in making an educated offer based on fact. Good luck with your purchase.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Wed May 27, 2009
My recommendation is to get a REALTOR who is HUD Cerified to assist you.....Is the Realtor who is helping you HUD Certified ?

I am HUD Certified and can assist you but would need to ask some more specific questions before I can answer that question in all fairness to you!

Need more info ?

Robert J Russell
0 votes Thank Flag Link Wed May 27, 2009

I think the number you have to ask yourself is what is it worth? What's the market value?
If market value is $90K, then $110 is too much.....If market value is $160K, then perhaps $110 or $130K are not bad prices. What are the $ amt of repairs you need to do? What is the value after those repairs? Is the neighborhood on the rebound or on the outs or stable? Many many other questions have to be asked before picking a number. What's your realtor say?
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Sun Apr 5, 2009
Bruce Lynn, Real Estate Pro in Coppell, TX
Thanks for the info. It is on the appraisal books with the county for $199, but it needs work; siding, drywall, complete kitchen and bathrooms updated, flooring, one of the rooms is sloping upstairs because it isn't adequately supported (garage underneath). All of these things are fixable, and nothing structural from what we can tell, but a lot of work nonetheless. There is 1 other foreclosure on the street and it is valued at the same, but is in need of much more work. The property is on 2.75 acres as well and has a pool in very good shape. There are no other houses in the area with acreage, nice size home, anywhere near that price, but they aren't foreclosures either.
All the other homes on the street (it is a 1 street neighborhood) are valued with the county between $150-$220.
0 votes Thank Flag Link Sun Apr 5, 2009
Dear home buyer,

Making a random offer on a home based upon list price can be risky, and in the end you could pay more for it than others came in and bought for. Without knowing the neighborhood, city, square footage, condition of the foreclosed home, and the selling (not list) prices of the other homes in the neighborhood, it is difficult to tell you what a fair or below market value on a home is.

That being said, I have saved my clients consistently more than I have earned on each house I help them to purchase!

Feel free to contact me for Dallas area real estate.
0 votes Thank Flag Link Sun Apr 5, 2009
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