thinking about buying this reo home-need some input please=pics
We found this REO property in a really nice area, but like most foreclosed homes, it needs a lot of work.
The house first listed for $139k in April, dropped to $129k in May and now dropped to $119k, so it seems the trend is going down $10k every 30 days that it doesn't sell. The county property records list the FMV around $155k but homes in the subdiv. go for way more.
My unknowledgable "guesstimate" is that it probably needs about $50K in repairs/improvements. I'm going to see it again beginning of the week to decide whether or not to place a bid on it.
I'm wondering what type of offer I should place on it. At first I thought $90K then $84K, but after reading some of the posts on this board, I'm wondering if I should start lower.
If I do decide to put in an offer it would be contingent to inspections. The electric wasn't on, but when my REA called the lsting agent they said we just need to hit the breakers. If I don't get it, I won't be heartbroken, I like the house but I don't absolutely LOVE it.
I'm going to have a handy man meet us there when I go and if they accept my offer should I decide to put one in, I'd have a full inspection done, including the necessary mold inspection.
I know there's a problem with the roof, (there's some water stains in the ceiling) wood is rotting in areas around the exterior, needs 2 new single garage doors, back patio that may have been a sun room is basically a shell, needs a lot of cosmetic work as well. What I don't know is...if it's electrically sound - for some reason they took off the breaker box door and frame so I see LOTS of wires. If there's any problems with the septic tank, termites, pipes/plumbing, etc. etc.
From what I could find out from public records was that a loan of $118K was taken out, for a 15 yr mtg. What I don't quite understand, and it may not make any difference whether I do or not is that I was able to find info that the bank "bought" this property for $20K 3/2008 and then again, with the same owner listed, and the same bank in 3/2009 for $2,500.
Can anyone who's gone this route give me their opinion on what to possibly offer for this house? If it helps, I would be doing a cash deal as my parents will be giving me a mortgage so the bank wouldn't be waiting for me to get a mortgage.
Thanks for any input!