BiggerPockets

We put in another offer on a foreclosed SFH. Now just waiting to see if the bank bites or not.

Listed at $46k and been on the market less than 30 days
We offered $30k cash w/no contingencies
Last sold in 2003 for $120k
100% Taxable value at: $110k

The home is 1400 square feet and in a excellent neighborhood and school district. It's a 2 bed/1 bath. Has living room, large dining room, nice sized kitchen, den and family/rec room. Then 2 large bedrooms upstairs. The den could be converted to a 3rd bedroom.

It needs some work including all new carpet and pad throughout, one bedroom has no heat source so we would need to figure that out and have it vented in. It will need new interior paint and some dry wall work in the family room. And some other misc. repairs....the ducts need cleaned out as it looks like the previous owner was disgrutle and put depris down into the heat vent openings. It does appear structurally sound.

At the time we put in our offer the selling agent said that they had no offers yet. It would be great to walk right into this deal but not sure if the bank will accept an offer that is $16k less. We figured our offer is in line with the amount of work/cost we'll have to put into it.

I'll let you know if we get an accept, reject or negotiate from the bank.

In my small experience the only good deals I get have languished on the market for a while.

I see plenty of 'investors' jumping on the bandwagon and paying too high for stuff that doesn't cash flow when it's fresh on the market.

Buh Bye to your dough!

That's consistent with my experience. They will come down a little, maybe 5% at the most. If you would re-offer at $40K, you'd probably end up at about $42-43K. Then, knock them down a bit more based on the inspection. But sounds like that's not really good enough for you to have a deal.

If you watch this property, the price will drop about once a month or so. Your agent should be able to give you the price history. Resubmit your offer the day a price drop occurs. Once it hits the "good deal" price, it will go quickly.

All about the "at bats" and not being scared to low ball them.
Sooner or later you get one at your number and those are the ones you make money on.
When you get caight up in the bidding wars, you normally buy out of emotion and nothing ever good comes out of it.

Good move Kel.. I was shocked when Fannie accepted my offer of 14K. The home listed at $48K, then $36K and then down to $24k and then I made my offer.

They countered at 16K and sent their contract, which when I read it, I found out that I was responsble for all CC, so then I countered again noting that, at $14K. They also had the requirement of closing within 2 weeks, which was fine with me.

BTW: Check your Auditors site and it should tell you which bank owns it and if it's FM.