The wife and I have been viewing houses for the past few months. We want to get out of our current spot within several years, but we arent in a rush. Recently our realtor showed us a house that was listed well below market value, bank owned. I am just wanting to get some opinions on the situation...
We really like the house but it is going to need some work. The story is that it was being built for someone, when it was almost finished the buyer backed out and stuck the builder. The builder then moved into the house and defaulted on it within 4 years. The bank took the property. The property listed at 450K, came down to 350k and a buyer moved on it. They lost their financing after the house failed the septic inspection. In this state, a failed title 5 requires either a 203K rehab loan or a cash buyer. The house then sat vacant for a year, in which time it has a pipe burst on the outside wall, which damaged the laminate floor in the living room. They also cut into the walls in about 20 places, looking for the leak(possibly repaired). Over this time the price dropped down to 200K.
We have an offer in well below the ask and are looking at a counter offer now.
Highlights here are this:
The bank honestly doesnt know much and cant seem to move the house based on the hassle of financing, plus the location is a bit obscure for most people.
Am I missing anything here? I am thinking of moving forward on the counter offer and just wanting another voice, or 10.
We really like the house but it is going to need some work. The story is that it was being built for someone, when it was almost finished the buyer backed out and stuck the builder. The builder then moved into the house and defaulted on it within 4 years. The bank took the property. The property listed at 450K, came down to 350k and a buyer moved on it. They lost their financing after the house failed the septic inspection. In this state, a failed title 5 requires either a 203K rehab loan or a cash buyer. The house then sat vacant for a year, in which time it has a pipe burst on the outside wall, which damaged the laminate floor in the living room. They also cut into the walls in about 20 places, looking for the leak(possibly repaired). Over this time the price dropped down to 200K.
We have an offer in well below the ask and are looking at a counter offer now.
Highlights here are this:
- Failed septic, I sent the report to a septic engineer and he said it could be up to a 19k repair.
- Plumbing unknown, may require more work. Some minor water damage from previous break.
- A fair amount of cosmetic work needed. Holes need to be patched, laminate in living room replaced, paint, some unfinished stonework, trim, ect
- Concrete slab foundation, which is strange in this area.
The bank honestly doesnt know much and cant seem to move the house based on the hassle of financing, plus the location is a bit obscure for most people.
Am I missing anything here? I am thinking of moving forward on the counter offer and just wanting another voice, or 10.