What can I expect to pay for a foreclosure home?

Question

based on percentages I'd like to know how much of a deal I can expect to get when purchasing a foreclosed home verses a new home. I donot want to overpay for the property.of course the bank will want all that it can get but if the home has sat on the market for two years I'd expect that they woud want to deal.

Answer 1

You can start 50% off from what they asking, and you should consider, after you close on your home you will pay all the property tax for few years, Good Luck! Hire a realtor, and a good one, who will do negotiation.

Answer 2

Honest answer is:

If the bank agrees to sell the house for less than the current real market value (meaning what is the most they can sell the house for in the current market) then the bankers are either committing fraud on their investors or they are ignorant.

I believe that the vast majority of the homes out their sell for what the real current market value is.  If you buy exactly the house you want and get it at today's fair price, then you are getting a good deal.

If they have it overpriced you may need to offer 30% or 40% off.  In my area the banks often UNDER-PRICE the home and get a huge crowd of people in the first weekend.  This results in the buyer paying a large amount over the list price.

If you don't want to get burned you need to see enough houses and have a good buyer's agent help educate you about market value so that you know if a home is priced well or not.

Answer 3

Depending on the bank, I would start at 60 cents on the dollar minus repairs.

Understand your offer has to take into account repairs. Foreclosures usually require some repair.

Start at 60 cents on the dollar (60 percent of current market value) minus repairs and your way up from there.

Answer 4

first rule on bidding is never start too high because you can never lower your bid.

Next is always have the money for a fast close....get prequalified and have a letter of commitment in hand.

NOW is a great time to buy a foreclosure as banks have a record number of homes in inventory....

Know your market, make friends with realtors and contractors and get comps then make a smart bid

Answer 5

While I can't give you a cents on the dollar figure, after looking at nearly 70 foreclosures before buying one, it is my experience that prices varied $100 give or take - it depends on the area, the age of the home and how much work it needs.  If the house needs work, but not nearly as much as some others, you'll pay more and you may have to fight to get it because the amount of homes out there that aren't destroyed by their previous owners is very slim...at least that's what it is here in Virgina.  If a house has been sitting for two years, chances are there's a good reason no one has snapped it up (structural damage, new roof is needed, major repairs...) so do your homework.  Hope you find what you're looking for!  Good luck!