Multiple Price Drops in 2 1/2 Months on Prospective Home

[Robert P.]

Looking at a 2-family home that started out listed at 195,800 on 7/7/15 and is now at 149,800 on 9/23/15. I looked at the home, which seems to be in good shape. Decent area, solid exterior and interior, with a finished cottage setup on 3rd floor. Place cash flows as a 2 family, and looked into zoning in my city and its possible to convert to 3 family to make it cash flow even more.

My worry - why did it drop in price so much in the last 3 months or so? Was it well overpriced? Something wrong with it (have not had inspection yet...or put in an offer either)

I'm trying to take advantage of all these price drops and offer 130k with 5k in closing costs. Anything I should be worried about? I know you have not seen the house or anything, but any major things I should be looking for when a house drops that much money ($50,000) in such a short time period?

[Account Closed]

Originally posted by @Robert P.:

I'm trying to take advantage of all these price drops and offer 130k with 5k in closing costs. Anything I should be worried about? I know you have not seen the house or anything, but any major things I should be looking for when a house drops that much money ($50,000) in such a short time period?

Whenever you are contemplating purchasing real property the first thing you should do is determine market value.  If you know market value then you will probably have your answer.