REO Property, should I directly contact listing agent for a deal?

4 Replies

Experts help!

was foreclosed in march.

REO property which has been on the market for almost an year now. Listed for 450k (5300 sqft, Built 1979) in a Good neighborhood. last sold price 600k(2006)

1- Is it advisable to reach out to listing agent directly? or its better to  be represented by a realestate agent? I heard listing agents are more willing to make a better deal when we directly reachout to them?

2-Real estate agent says this property might be fixed up for ~70k max, though I see mold and water damage in pics, he said he don't think there are major issues and he mentioned taxes were 10,000, lower than the avg in that area for that sqft but when I did my own search from county it showed the taxes for 2018 were 16k just how every other house was priced at[so not sure if I should go forward with him?]

3- Could you please share your experience/thoughts based on pics attached, how much would this property renovation cost me to bring it to current code standards and marketable to get good returns? I'll view the property this weekend.

4- This has well-water setup, and all other properties in 1 mile radius, 4000 sqft homes are all private well and sewer setup.. Would it add value to the property if I spend money in city water hookup? 

5- This home is 1979 build with largest plan in the area 5300sqft.. Other homes are around 3000- 4500 sqft, however they are all newer models ranging (1994 - 2013).. is that going to be a negative point/diminish the value of home even after renovations?

6- if mold issue exists then should I straight forward turn away from considering this property as investment?

Listing agent is accountable to seller only. He has no duty to you, so does that make any sense to you to rely exclusively on someone with ZERO accountability to you? And having an agent representing you will cost you NOTHING: seller pays the total commission that your own buying agent will receive: if you don't have a buying agent, listing agent pockets the money. Having a buying agent is the best money you DON'T spend lol.

2006 price has zero relevance to today's value, you know that, right?

Good looking property but why does it sit on the market? Mold? Don't walk, run!

Inspection contingency is your friend.

Jacques

@Jacques herve ahaha! Thanks for your post!!  agreed, when I asked my agent the same question, his answer was "sometimes its just the time when it is put in the market" so i'm just not feeling comfortable with him as my agent. 
@Patrick Strain on the carpet , the corners looks dark and the dark patches in the middle.. could be water damage/mold?
Originally posted by @Nida Hussaini :

@Patrick Strain on the carpet , the corners looks dark and the dark patches in the middle.. could be water damage/mold?

 I wouldn't make that assumption, at all. I'd guess it's just dirty, but it's easy enough to pull back a corner of the carpet and check. You're going to want to replace the carpet anyway.