do you think the price of this house?

Asked by Krisshir, Massachusetts Sat Feb 16, 2008… can be lowered upto $140,000? it's bank owned. we visited this morning but our agent had an emergency so we didn't had the chance to see the inside but i saw the crawl space that it's full of wood there and junk and the porch in the bank is kinda too old and needs to be replaced. Also it says there it was winterized, what does it mean? also what's the range of the rates right now for loaning to buy a house? thanks i'll appreciate your inputs.

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Jim Armstrong, Agent, Salem, MA
Sun Feb 17, 2008

Mortgage rates are fluctuating all the time right now, and are currently in the low 6's for a 30 year with no points. (2/17/08)

The property you are interested in has been on the market for 101 days so far, and they haven't reduced the price during that time. That tells me the bank may want an offer close to list. They are owed over $250,000 on the property according to public records, so they are going to write off a significant amount of money. But banks want these properties off their books, so make an offer (after seeing inside).

The bank may or may not let you de-winterize the property before having it inspected. If they do allow it, they normally want you to use their contractor to do the de-winterizing, and then to re-winterize it when the inspection is done. This can cost you $500-$1200 that will have to be paid before the inspection, and this is on top of the cost for the home inspector himself. I'm not trying to discourage you, just want to make you aware of the costs involved. There are some great deals out there on bank owned properties, and this just may be one of them. Just make sure you do your homework (that's what your agent is for).

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Erik Hook, Agent, Somerville, MA
Sun Feb 17, 2008
Hi Krisshir,
The only way to find out if a price will be accepted is to make the offer.
I recommend that you schedule time to see the inside of this property. You may also want to bring a licensed home inspector if possible. When houses are winterized, the water is removed from the pipes by a plumber, and the water to the house is shut off. Bank mortgage rates depend almost entirely on your credit score. I have recently heard of folks with good credit obtaining rates as low as 5.65 on thirty year fixed rate "conforming " loans. A good mortgage broker would be able to answer this question for you.
Good Luck!
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3 votes
Michael Giles, Agent, Beverly, MA
Wed Feb 27, 2008
Once you make your offer to the bank, be prepared to wait for an answer. A bank owned deal can take at least 6 weeks longer to get done. Also have a lawyer read over the P&S that they make you sign. Even though you can't make changes there are many things that different banks right in that you should be aware of. For example most banks state that they have the right to accept a higher offer right up until the closing date.
As Jim said, we are not trying to scare you but knowing what to expect will eliminate any surprises that can be stressful.
1 vote
Lissa Demin…, Agent, Salem, NH
Sun Mar 9, 2008
The best way to proceed is to bring a professional contractor to the home to assess the foundation and get an idea of what the repair costs would be and that would allow you to make an informed decision when and if you make an offer.

As a buyer's agent, I always make it a point to sit down and discuss the entire process involved in buying short sales and foreclosures since it is such an involved process. It can be rewarding in the long run though!!
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Krisshir, Home Buyer, Massachusetts
Mon Feb 25, 2008
Lissa since you've been in this place do you think it is worth it to renovate it? since the foundation looks like it isn't good, plus i think the renovation will cost more than $50,000.00 what do you think?
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Lissa Demin…, Agent, Salem, NH
Sun Feb 24, 2008
I've been in this home a couple of times - it definitely has some great aspects to it despite being on a somewhat busy road. The only way to find out what a bank will accept is to put in an offer and see what the response is. But as Jim noted, it has been on the market for quite some time so your offer would probably be considered.

Good luck! Haverhill is a great place to live !
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