First Time Home Buyer - Too good to be true?

Question

Greetings!I found a cheap home in Texas is in a neighborhood where the median home price is $331,350 avg. The house was build in 2010 and seems to be a foreclosure but I cant find it on the county foreclosure website. The description says that its "Priced to Sell". It has cosmetic issues that don't look alarming (Paint scratches and stained carpet). It is priced at 100K, is this too good to be true, or did i stumble upon a mini investors gold mine?

Paul De Luca · Answer

Ask for the property disclosures and see if your agent can get more information from the listing agent.

Mohammed Rahman · Answer

Hey @Sydney Rae - the reality of the matter is, it could go either way. I understand that most comments here will tell you that it's not a good deal and that there's something going on, and that may be the case, but it could also just be a fluke and the property is actually totally fine and you've actually found a deal.

I recommend driving past the house to get a closer glimpse of what's going on if you're able to, instead of crowdsourcing a conclusion. You could also potentially reach out directly to the agent, as it seems as if it's also publicly listed on the MLS.

Usually if something is publicly available, and it sounds like a great deal, there's either underlying issues or it's not that great of a deal (but still a deal) - just depends on what your investment goals are.

Guy Gimenez · Answer

If the property is listed with a broker, there's a reason it isn't already under contract. You need to get more information as there is no way to know if it's a good deal with no information on the property. Get another investor to help you through your first few deals so you don't make a major mistake.

Michelle Olsen · Answer

There is also a particular realtor in the Austin area that will price properties WAY low in order to generate interest and a potential bidding war. I personally do not think this is an ethical business practice (misrepresenting the true selling price), nor do I feel it is in the best interest of his clients, but that is what he does.

Andrew Freed · Answer

@Sydney Rae - Just to echo @Greg Scott's point, I had a house under contract in Round Rock Texas, constructed in 2007. During the inspection, we came to realize that the foundation was falling apart and needed about $30K of work. After that, the numbers didn't really make sense so I backed out but just cause its a relatively new property doesn't mean it doesn't need significant work. I came to realize that a ton of areas in the Texas have similar issues due to the quality of the soil.

Lucia Rushton · Answer

@Sydney Rae what part of Texas ?

Eliott Elias · Answer

Send the listing my way, will confirm what it is for you

First Time Home Buyer - Too good to be true?

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