There is a single family home that I have been following that has been foreclosed for awhile. It was posted on the MLS for a ridiculous amount and has set idle. It has gone up for auction (online) several times with no bids.
They are currently listing the house for 250k. Auction starting bids started at 180 or so and are now down to 140k. No takers.
I am interested in the property because of the land value. House may or may not be salvageable.
What are your recommendations in moving forward, trying to get the best price for this property. Should I contact the bank directly? Wait out a few more auction cycles, but risk losing it? What would be a good offer, if I feel the land is worth 100k?
Thanks in advance!
Daniel Patrick , if the land is worth 100k, what are you willing to offer? 80k? 70k?
One option is to bid 50k and see what happens. You may see other bids from the auction company itself but if it stays on the market, they will get the hint of the true value.
If it allows inspections, take a contractor and have them give you a scope of work and conservative (higher end) bid to account for unknowns. Present that back to the listing agent.
Chances are you are too far apart, but unless you try you won't know for sure.
Why have you fallen in love with this property?
For the land to be worth $100K the comps. should come in around $500K (land value = 20% of FMV).
Once you get it, what will it cost to build?
Yes like @David Dachtera why are you interested in this property if it is overpriced? Just because a property is vacant or an REO does not make it a good deal. Sure it Could be a good deal. But so can anything if the price drops by 66%
Wait out a few more auction cycles, but risk losing it?
Why would you care if you "Lose It" if it is selling for more that it is worth to you?
Thanks for the reply's! You guys got me thinking. I am very glad I made this post!
The property is five acres. Right across the street is the current growth boundary. The way the current house is sited, dividing the property in half in the near future is a definite possibility.
The house is a brick 50s ranch that is ~3000 sqft. I would like to flip it into a long term rental, marketing it to horse people and hopefully higher quality tenants. I could even see myself living there.. maybe thats why I am too emotional about it.