So, I've been gathering info for a while, getting funds ready and have been searching for a great deal. I've noticed a foreclosure within a mile of the local university, listed by Freddie Mac at nearly 1/2 of the tax assessed value and what I've placed as the market value. I haven't viewed the property, but I always think to myself "Why has this property been on the market since November?" when it seems too good to be true. Here's the description;
"Just freshened with new interior paint. Laminate and wood floors. Basement wall has been reinforced. Great buy! Special HomeSteps Financing available. Pre-qual required. Sold as-is. $500 warranty allowance. Agents: See attachments. See Agent Only for selling bonus info."
Pretty standard stuff, except for the bolded part. That TERRIFIES me. Am I right to be terrified? Obviously, further due diligence would help figure out what's going on, but I'm just curious as to the more experienced members' thoughts.
I can't see which part is bolded, but I can tell you that the tax assessed value has no bearing on the value of the property. Please compare to recent comparable sales in the area.
I put it in italics and it's showing up. The part about the basement having been reinforced. That terrifies me. Also, yes, I understand about the tax assessed value not being reliable, but it's fairly reliable around here because our county just did a full reassessment and the market values have been fairly closely aligned with assessed values.
If you have not looked at the property, why would it terrify you? Its something to note and make sure when you have your property inspector come through make sure he checks everything throughly.
I guess what I'm trying to guage is why should it not terrify me? Why would basement walls need to be reinforced? Does this normally solve the problem or is it a bandaid on a gunshot wound?
Saying the basement wall has been reinforced leads me to believe that the basement wall needed to be reinforced and then my mind starts going all over the place about foundation issues, improperly sealed exterior basement wall, etc. etc. I'm not truly terrified, it just jumped out at me.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing