Home Buying in 92833>Question Details

SR123, Home Buyer in 60601

Can anyone plz answer my questions about MLS #C08168464 (2207 chaffee street, fullerton)Plz?

Asked by SR123, 60601 Sun Feb 8, 2009

My question is it is a bank owned condo listed for 360,900 and it needs additional 30k-40k in repairs to make it livable. So, is it worth offering 300k for this house.
And also each online appraisal site is showing different appraisals how can we find out the accurate appraisal for this house. Plz help.

Help the community by answering this question:


Hi Shree,
It looks like you may be thinking of purchasing in the Amerige Heights area as this is your second question pertaining to it!

I did take some time and pulled the most recent comparable sales for the development you are looking at. In the last three months, this model has sold anywhere from 415k to 475k. Banks typically price pretty aggressively to sell it quickly.

I have a few more questions as to how you came to your repair costs, what your realtor says (if you are working with one)...etc..

You will get your appraisal once you open escrow. As Pat mentioned before, you would be able to re-negotiate if the appraisal comes in less than the purchase price. In looking at the comps, I think you will be fine. But this, again is something your realtor can help you with.

If you would like to have a converstaion, I would love to help however I can. Thanks! Cristal
0 votes Thank Flag Link Mon Feb 9, 2009
Hi Shree:

Many banked owned properties are sold at fairly competitive prices - taking into consideration the condition. There may be several offers on the property. You need to determine what the property is worth to you and make an offer that fits your budget. I am familar with the area. You will also have to take into consideration that there is mello roos and 2 associations in that particular development. That will also be a factor in your monthly payment consideration.

That being said - if you were to make an offer and it was accepted - you would still be required to have an appraisal to satisfy the bank - in the contract if the property did not appraise at the offerd price - you would then have an opportunity to renegotiate the offer.

I am a local realtor and have experience in that area. Glad to help with any other quesitons you might have.

Patricia Hart
0 votes Thank Flag Link Mon Feb 9, 2009

The list price of a property is kinda like the story of Goldilocks and the Three Bears, some are too high, some are too low and some are just right. What you really need to know is what is the fair market value of the home. From this, you can subtract for repairs and length of time on the market, and this will provide the fair market value for this particular home. A good Realtor and a comparative market analysis will be very helpful in making this determination.

Your other question is "how can we find out the accurate aporaisal for this house?" My recommendation is make an offer you are comfortable with, have the offer accepted and, only then, pay for the appraisal. You will not be allowed to overpay for a home. Appraisers are being very cautious these days and will not give the home more value than the market can support. If you and your Realtor have done your homework, you will get a good deal on this property. In my experience, homes that require repairs do not find themselves in bidding wars caused by multiple offers.

In summary:
1. Determine the market price in this area, by working with a good Realtor who will run the numbers and educate you on what they mean.
2. Determine the actual repair costs.
3. Make a reasonable offer based on the above and the length of time on the market.
4. Be prepared for a counter offer or a direct rejection if your offer is very low.
5. If you really like the area and want to buy there - repeat from 1 above until you and the bank can agree on a price.

Remember, time is in your favor. Home prices are not going up right now and banks know this. Just be reasonable with your expectations, make informed decisions, and Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Mon Feb 9, 2009
I would say yes it's worth it to you to make this offer. You have nothing to loose starting low. If I was your agent, I would try to get you to offer closer to the asking price. I haven't had any lowball offers accepted from banks. The bank has taken everything into consideration when they set the price. They believe it is fair. All of my foreclosure offers that have been accepted were within $20-30,000 of the asking price. Most were close to full price. I don't think Fullerton is as depressed as a lot of area's around L.A. To get a real appraisal you will have to pay for one.
0 votes Thank Flag Link Sun Feb 8, 2009
Shree -

To answer your question about obtaining an "accurate appraisal" - you need to hire a licensed appraiser which will cost about $350.

Thom Colby
0 votes Thank Flag Link Sun Feb 8, 2009
How do you know it needs $30 - 40K in repairs? Are you working with a Realtor? If so, your Realtor can provide all of the "comps" for you to make a decision about how much to offer. No one here will tell you what price to offer as that is the buyer's decision. I can tell you that from the "solds" I see in that development, even bank owned properties like this one are selling in the high $300's to low $400's. This property was built in 2004 and that buyer paid $416,000 - the last owner paid $535,000 in 2005 and the bank now owns it for $488,750. So what you really have to judge is how much more is the bank willing to lose. In December th ebank put it on the market at $379,900 and reduced it to $360,900 last week.

Best of luck !

Thom Colby
Broker & Realtor
Orange County, CA
Web Reference: http://www.thomcolby.com
0 votes Thank Flag Link Sun Feb 8, 2009
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