Purchasing a fixer upper
I am not looking to invest and resale, I am looking at a home to live in. We have a situation where we have found a home that has been foreclosed on and the bank is asking $98,500. But the house is in such a condition that we are told that it will take $30,000 to $40,000 to fix it up. It will have to have new heat and air, the walls stripped, new cabinets, fixtures, etc. Basically everything except the outside structure is sound but the inside will have to be totally renovated. It has sat with broken windows and moisture has came in and basically it's just a big mess. But we like the neighborhood and it has potential. But anyway my husband is taking a new job in this area and we like this home. But we have been told by the agent representing the bank that she has had offers in the $70,000's and the bank did not take it. I was wondering if you could give me an idea of what would be a good offer to start with. The tax value is $113,000 but obviously the tax department hasn't seen the house in a while. I cannot deal with the bank only the realtor. I tried contacting the bank and they just e-mailed be back telling me to contact the realtor.
Our other problem is we have another home we own that would have to be sold or rented before we could make this purchase I'm assuming. I don't have alot of experience in this area. Do you know if there is a loan that we can get to purchase this home and get the money to fix it up at the same time or how does this work. I would appreciate any advice you could give. Thank you for your time.
"But we have been told by the agent representing the bank that she has had offers in the $70,000's and the bank did not take it."
How long ago was this perhaps now they will go lower.
"I cannot deal with the bank only the realtor"
They have a contract so they will have to them a fee. They use them to filter out the looky lues.
"The tax value is $113,000"
Where I live tax value is 10% of fair market value (FMV). So that would make it worth $1,130,000. Do you see where I am going? You need to know FMV in the current condition.
Sometimes banks just do not get it. Perhaps what you could do is get the house apraised and submit that with your offer. Cost around $350 If that does not work walk away. Make the same offer every 30 days.
"we have another home we own that would have to be sold"
Banks usually will not acept offers that contain clauses like "must sell current home" They want CASH.
"Do you know if there is a loan that we can get to purchase this home and get the money to fix it up at the same time"
Yes, but the intrest is going to surprise you. It is not cheap.