To be specific, The list price is 64,000 …. The home needs about 50,000 of work and I’m a contractor so that is not an issuue. Similar house in the area in better condition go for 170 – 180,000 on zillow…
What would you offer (to start with) and what would be pay for in the end? Is offering the listing price crazy or not?
I am very aggressive investor of real estate. I never offer the asking price. I have been accused of low balling an offer. This is to see where the seller’s head is.
If you plan to reside in this house as your home, then you are not playing the same game, therefore the rules would be a little different.
You might consider making a list of all the repairs that are needed and the cost for these repairs. Make sure the estimates are realistic and not made up figures. Add 10% for incidentals, being a contractor you know that something will come up that you might over look. You would want to cover this and be on the safe side.
You might get these estimates from another construction firm than your own. You have a stake in the outcome.
Speak with your real estate agent about his/her experience with this lender/bank.
Based on information from your real estate agent and the repair estimates make your offer to the lender. It would not be uncommon to offer a few thousand below the asking price with the support of the estimates to repair the property.
You might also add to your offer, you would want the right of first refusal.
If your real estate agent is not an aggressive real estate you might consider finding one that is. there are some real estate agents that feel as if they are working for the lender instead of you, their client.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"
the list price is 64k because that is what the lender is owed. Rarely do they accept less. So offer the 64k or no less then 10% lower.
after foreclosure the property is listed up to two times for auction in th "legal notice" section of the newspaper…the first auction the try to get the money still owed on the place the second is best to buy its where they try to get free of the property, in many cases they will take any offer meaning if your the only bidder and offer fifty bucks its yours (as long as you have the money or proof or pre-aproveal depending on your state) Some though have a (at least) or starting bid. This usually are held on courthouse steps.
Personally since any wise bidder knows the improvements are going to eat most their profit and take a long time and investors often don’t know a roofing nail from a tack, they probably won’t touch it, be patient and wait for that 2nd sale and big small. If nothing else and you lose it at the auction put in your repair bid with a list of "must do" I’ve known contractors that found work in just that way too.