Home Buying in 95835>Question Details

Coloandi, Home Buyer in 95835

Buying a home in North Natomas, are people overbidding, underbidding, or offering asking price in this area? How does it work with a foreclosure?

Asked by Coloandi, 95835 Sat Oct 1, 2011

We want to buy a home for about 170,000 and live in it for about 3 years and then rent it out. Do we overbid or underbid? is this pricerange good as an investment for a rental property which it will eventually become when we move and buy a larger home in a different area, perhaps roseville.

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This cannot be answered without knowing the details of the property. I always suggest drawing an exact map search around the subject property add criteria (Bedrooms, baths, sqaure footage, etc) and see if there is a model match or comparable home that has recently sold. Ultametely it is the sold homes that determine the value of the home you have interest in. Bank owned homes in the past have been known to be priced low and typically had multiple offers. The banks have become more conservative and are listing the properties closer to market value now. They have 3 BPOs (Broker Price Opinion) done before determining the list price. The BPO is essentially an appraisal and the bank will be hesitant to move off their price within the first 30 days. If the home has been on the market over 30 days and has not reduced in price this could be a good time to jump in and make an agressive offer. Contact me to have a real insight on Bank Owned property as I have worked directly with asset managers, banks and entities such as FNMA and FDIC.

Tom Gonsalves
Gonsalves Real Estate Properties
1 vote Thank Flag Link Sun Oct 2, 2011
If the goal is to purchase the home, make an offer that you are comfortable with. There is no way to determine the price that will cause the seller to accept your offer. However, looking at market data of previously sold comparable properties will give you an idea of what to offer. Your agent should be able to pull that data for you.

Overbidding has its pros and cons. Pros: Your offer may be the highest and get accepted. Cons: If you are purchasing with a loan, your lender will conduct an appraisal and, if the appraisal comes back less than your purchase price, you may be responsible for coming up with the difference to close the transaction.

Underbidding, if it is an area in demand, may cause your offer not to be accepted.

Whether or not that price range is good as an investment property depends upon the area rent prices and demand. You can go to places like http://www.craigslist.com to view area rental rates or perhaps contact a property management company and see if they would be willing to share that info and maybe even what they might charge to manage it for you.

So again, make an offer you are comfortable with. Sounds like your goal is clear, so how you get there doesn't have to be complicated, that will only delay your goal and perhaps cause you to miss s great opportunity to purchase.

Happy house hunting!

Keisha Mathews, CDPE®, REALTOR®
The Short Sale Lady (SM)
Century 21 Landmark Network
(916) 678-1803
lic#: 01439130
1 vote Thank Flag Link Sat Oct 1, 2011
You should not compare prices to houses in that way, you need to look at teh house you are interested and assess what it is worth in todays market, they will take 3 sold comps within teh last 6 months and 3 homes currently listed, they should be adjusted for anythiing different such as size, age, garage, fin basement or any upgrades. Your purchase price should be at or just below that value.
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Sat Oct 1, 2011
It completely depends on the property. If it's a regular sale (unusual in 95835) and it shows well, it will go FAST and likely for the top of market value. If it's a short sale, doesn't show well, and has been on the market for 60 days, you can probalby underbid and then hope that the bank will see eye to eye with you. It really depends on the way the property shows, what type of sale it is, how well it is priced, and so forth. I work this area quite a bit, you can check out my blog and contact me any time!
Web Reference: http://www.lisajonsson.com
0 votes Thank Flag Link Sat Oct 15, 2011
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