Looked at a Fannie Mae Foreclosure Today
Fannie Mae asking 185 for the property. Big old farm house built in 1857. I looked at it, and although it looked structurally sound for now, it has some major issues.
Not hooked up to municipal water and sewer is the first big one (shallow hand dug well, and cesspool ), Probably 25 G right there.
Knob and Tube wiring hacked up by at least half a century of home remodelers.
Hole in roof, not big but you can see rafters from outside
Holes in plaster, ugly bathrooms, broken kitchen cabinets, overgrown landscaping, lead paint,,,,bla bla bla lots of interior cosmetic stuff.
After repairs this place would be worth about 250. But I'll bet it needs about 80 in work to get it there. Lots of stuff not disclosed in the condition report. I kind of feel that whoever set the 185 number really doesn't know how bad the place is.
So anyway, I told my Realtor that I wanted to make an offer of 90 on the place. She seemed reluctant. She said that she figured 150 would buy it since Fannie Mae is asking 185.
I really don't see anybody getting a mortgage to buy this place, it's pretty much limited to cash buyers. I have to make some kind of offer on the place, I really see it having potential. But damn if I'm going to start high like that. Much easier to go up from 90 then try to go down. I really think I'd go as high as 120.
So anyway, here is my question. Do you think the Realtor has a point that 90 isn't a serious offer? She didn't think my estimate of 80 to fix the place was way off base.