All Forum Posts by: N/A N/A

Recent purchases within a 4 block radius:

I do understand that there is no way to know exactly what kind of rehab each house has, be it high or low quality. But these numbers can still tell some kind of story. Also this neighborhood is notorious for having a bunch of 2 bedroom houses, while mine is a 3 bedroom, which is a plus.

Comp #1
$312,000
Oct 24, 2007

Comp #2
$408,000
Jul 16, 2007

Comp #3
$312,000
Jul 2, 2007

Comp #4
$355,00
Sept 25, 2007

Comp #5
$303,000
Oct 15, 2007

Comp #6
$337,500
Aug 8, 2007

Comp #7
$345,000
Oct 15, 2007

Thank you all for the replies. Very helpful!

Just a quick rundown about the REO I currently have my eye on. I have never purchased an REO so excuse me if I sound uneducated. The home is located in Baltimore city, it is a 3bd 1ba 1910's rowhome, in a good area with homes on the same street listed for $325-400k. Other comps are 4 blocks away, ranging from $400-500k.

By searching public records I found that the property was turned over to the bank on 9/24/07. So almost 3 months now. You guys are saying that is low? Hmmm....

The house was turned over to the bank at a price of $142,000. Records say that was the "sales" price when it transferred ownership (from the last individual to the bank). I'm assuming that means the bank has $142,000 invested in the home? The house is currently listed on the MLS by an REO agent for $139,900. I walked around the outside of the home, but have not been inside. Outside is not bad. The MLS listing has a very brief description, which states "ready for your finishing touches". I assume that means the walls and floors are still in tact?

Although I haven't been inside, $120k seems like a fair price. I'd say a $100k repair budget leaves plenty of room for unexpected problems large or small. Possible listing price of $325k (i'm going off of the comp listed a half block down the street).

Do these numbers make sense to you guys at all?

Oh and one last thing, rowhouse next door is also listed for sale, it's in average shape from the outside. It's not an REO. Its listed on the MLS for $250k and says it needs a full gut rehab. It is an end unit and is currently broken into 2 units. Seems like it has been vacant for a very long time. Will this home hurt the resale of my home after repairs?

Thanks for reading...

1) Are banks more likely to accept a lower offer on an REO property if no financing is needed? In other words, if I can purchase the house outright, in cash, as opposed to someone that will be buying with a loan?

2) Does the listing agent automatically tell the bank everything you tell them? In other words, if I am a first time investor, will the agent relay this info to the bank? If so, how often will this hurt your offer on a property?

3) Say I found a REO property I am interested in, and by checking public records I see that the bank has held onto it for 3+ months, how hungry are they to get it off their books? Would offering 20% lower than their asking price be worth while? Remeber, they have held onto it for 3+ months.

Thanks!!!