Post # 1
Hey guys, I’m confused 🙁
We’ve been looking at a house that’s on the market for $125,000. We’ve pretty much fallen in love with it. So, we’ve looked at it a few times and we’re prepared to make an offer. Last night we were browsing the realestate site and for some reason we decided to look at forcloseure.com. As we were looking we came across our favorite house that we love so much. It’s under pre-forclosure and the loan value the owners owe back is $57,000. I’m confused how they can only owe 57 but be selling for 125. Can someone help me understand this? Does this mean we might be able to get the house for much less then listing price?
You guys are great.
Post # 3
My guess is they are trying to sell it so they don’t have to go into forclosure. They owe 57,000 that is not how much the house is worth and if it did go into forclosure it may go on the market for less; however, probably not that low. I wouldn’t wait for it to go into forclosure though because you don’t want to lose it.
Keep this in mind when putting in your offer though and talk with your agent about what they suggest. Maybe they will tell you to low ball your offer a bit lower than you were originally going to.
Post # 4
What they owe for their mortgage has nothing to do with house value. They (and the bank/lender) will want to get market value for the house which in this case is $125,000.
Post # 5
So, what’s “too low” to offer them? I don’t want to offend anyone or have them laugh in my face.
Post # 6
i think that question about what to offer can only be answered by someone who knows the property and the area.
we don’t know what an average price for a house in that area is, the size of the house, the features of the house. i don’t think anyone on the bee will be able to help you with that unless they are a real estate agent.
Post # 7
Talk to a Realtor and they will be able to give you this type of advice.
Post # 8
@BWED: I don’t know what the market is like in NC, but here in ST.L people are getting homes for thousands or tens of thousands less than the list price. For example, my condo just sold for 15K less than our list price (105K) and we had originally had it listed for (115K). Of course, the condo market is saturated (over 200 condos listed nearby) and we had it listed for 10 months. One thing you should check into is the comparables in your area to see what the homes sold for and also check into how many days the home has been on the market. These items will help you determine a price to offer. Good Luck!!
P.S. If you don’t have a realtor, ask a friend or relative to check into this information for you. My “Aunt” gave me access to the portal and I was able to see what condos in my neighborhood were selling for. We also decided to do a FSBO and saved about 6K!
Post # 9
What the owners owe, what the listing price is and what the house is worth are 3 different things. What the owners owe have absolutely nothing to do with what the house is worth.
If you want to make a fair offer, look at Trulia and Zillow to see what comparable houses have sold for. This includes square footage, lot size, # bedrooms and # bathrooms. Look at about 6 comparable houses within a mile radius. If there are foreclosures within that area, include those in your average. If you have not been pre-approved for a loan, take care of that first.
If you can get the house before it goes into foreclosure, you have a much better chance of getting the house. Once it is officially in foreclosure, there is a lot of red tape than can complicate closing.
Since you are really new at this, I would recommend contacting a Realtor for assitance. Their fee usually is paid by the sellers and is split with the sellers’ listing agent. Negotiating an offer isn’t brain surgery but if it is your first time, some professional assistance is probably in order.