Northeast Foreclosure, Appraisal Issue

2 Replies

So I have a foreclosure that I found in Connecticut that I really like the location for. The house was in the middle of a major renovation and is basically just studs and needs all new eletrical, plumbing, sheetrock, flooring etc. I found the appraisal from the foreclosure court records and the problem is the appraisal was done from exterior only and came in at $270k based on comps that we're finished. The listing only has a single exterior photo and the bank priced at $300k and it appears they are not aware or factoring in the interior condition. I know the way banks usually review their foreclosure offers so my question is should I wait for reductions or should I submit an offer now with photos documenting the interior condition? I would think the bank may not even be willing to look at the photos but wondering if anyone has run into this before and what they did.

Do you have an offer amount you plan to submit? The bank probably has no clue what the property is, however the real estate agent that listed it should know the house, condition and an idea of what it is worth. If you have a realtor I would have them approach the selling agent. I had luck getting a house in CT for well under asking price (I believe they were asking $165-170k and I got it for $110k) when I approached the selling agent with issues the house had and gave him a near $30k bid for foundation issues.