MLS LISTING PRICES

[Scott Clark]

Hey guys , I cant figure out how they can be asking the prices on foRclosed properties that need alot of work and updating.I went to look at the following property scenario.

1. property is a forclosure
2. sold in 2004 for 119,000
3. bank bought it back for 86,000 on 6/24/10
4. built in 98, 3 bed, 2.5 ba 1480 sq.ft
5. two houses listed on the same street 109k(short sale) 121k
6. current list price 79,900
7. comps in area vary but consistent around 100k
8. the property is missing the kitchen,furnace&hot water heater,all the interior doors, only thing in bathrooms is the tubs,
all flooring needs done,old huge horrible deck on back of house, garage door needs replaced and other misc. items.

I am running into alot of these in the area i want to work in and I cant see how they are asking these prices for these properties in this condition.Are they just trying to get a sucker and waiting for a realistic offer. Not sure if i just make offers for the numbers that work for me. thanks scott

[Diane J.]

The asking price is just an opinion. Realtors don't commonly know what the cost of repairs are to bring it inline with the comps but fortunately, you do.

The house you describe sounds like a great rehab if you can make $15-20K after all your costs. Ignore the asking price and the realtor's shock and awe when you submit your very low offer.