*Update 3* So I made an offer on a house today

[Bateluer]

Saturday morning, I was shown several houses. All of them were bank owned, so their previous owners foreclosed. Not my concern though.

Some of the homes were pretty trashed, missing all the appliances, bathroom fixtures, etc. Some people have no taste as well. Why the heck would want to paint a room purple and pink polka-dots? I'm not kidding with this.

The house I made an offer on is 1514 square feet, 3 bedrooms, 2 bathrooms. I don't have a floorplan handy, but its a great room type plan, with a very open, airy center room. It has all the major appliances, minus the washer and dryer. The previous owners must have been gearheads though, because the garage has a serious of nice wooden cabinets in it. Lots of storage in there.

The pricing is pretty solid too, about 80K. I'll find out early next week whether or not the lender accepts my offer. Most likely, they will, unless another buyer made an offer before me.

Exciting!

Update 21 Apr 2009: Made an offer on another house today. Pricier than the first home at 95K. Same floorplan, but it lacks a fridge, a washer, and dryer. The garage doesn't have all the nice cabinets either. The back yard is a bit nicer than the other one though, even though the lots are the same size. There's a slab of pavement for a jacuzzi or a gazebo, in addition to a large paved patio. They'll both need healthy doses of Round-Up, they haven't been weeded in a while. The carpet'll need to be cleaned, and some walls repainted, but that's no biggie. And pretty much standard with any bank owned home.

And at the time I was shown the house, there were no existing offers on the property, so odds are, I'm the first. Hopefully, I'll be the last.

 

[newb111]

What's the location?

 

[Bateluer]

Originally posted by: newb111
What's the location?

Avondale, AZ.

 

[RichieZ]

...in SF you can buy a deeded parking spot for 60K.

 

[Bateluer]

Originally posted by: RichieZ
...in SF you can buy a deeded parking spot for 60K.

Not worth it. A few years ago, this house was going for 200K+. Obviously, it wasn't worth that. 🙂

But, I'm getting in at a good price even if its not at the very bottom. Good lending terms too, 30yr fixed at 4.75%.

 

[Jadow]

Congrats, it sounds real nice!

Are you a first time home buyer? If so, then you can knock 8 grand off the price as you'll get a phat tax credit!

 

[Bateluer]

Originally posted by: Jadow
Congrats, it sounds real nice!

Are you a first time home buyer? If so, then you can knock 8 grand off the price as you'll get a phat tax credit!

Yes, first time home buyer. Its not exactly 8K, its 10% of the value of the home up to a maximum of 8K. Not sure if they are counting closing costs and such in their tally though. The cost of the house is 79.9K, but with closing costs, it will be over 80K easily.

Either way, my tax refund next year will be massive. Home buyer credit + Lifetime Learning Credit = Probably 10K

 

[Jadow]

Also, if the house needs any doors and windows, Obama and the tax payers will pay for 30% of those if you get energy efficient ones!

Putting in a new Anderson sliding patio door, thanks for chipping in on 30% of it.

 

[Bateluer]

Ah, bullspit! I spoke too soon.

Just heard from my agent. This home has 3 offers on it already. 🙁

I can still more forward on it, but I'll have to compete/outbid others. I'm still going to move forward with a formal offer, but I'll have to keep looking.

 

[MartyMcFly3]

Good luck. I just put an offer on a SF, 1650 sq. ft., 3 BR, 2.5 Bath, all appliances... Being foreclosed so the asking was 180k. Put in for 160k. Put that offer in last thursday, but still haven't heard about it. Like you, I am also a first time home buyer.

 

[Vette73]

Originally posted by: Bateluer
Ah, bullspit! I spoke too soon.

Just heard from my agent. This home has 3 offers on it already. 🙁

I can still more forward on it, but I'll have to compete/outbid others. I'm still going to move forward with a formal offer, but I'll have to keep looking.

Be careful. A lot of banks/realtors play the "there are other offers make another one that is higher..." game.

So don't offer more, just keep looking.

 

[Red Squirrel]

Wow I'd jump on that for that price. Sounds decent. Even if you end up having to put 40k of repairs in it, it's still a good deal.

Monday I find out how much the bank will give me, then I'll start house hunting myself. I'm hoping the bank will give me about 200k, then I can look in the 150kish range which is where the houses are half decent. I'm willing to learn carpentry, plumbing, and other house work so I don't mind getting a fixerupper, as long as it's not major structural issues where I'd have to get an engineer involved and the whole shebang.

 

[Bateluer]

Originally posted by: Marlin1975

Originally posted by: Bateluer
Ah, bullspit! I spoke too soon.

Just heard from my agent. This home has 3 offers on it already. 🙁

I can still more forward on it, but I'll have to compete/outbid others. I'm still going to move forward with a formal offer, but I'll have to keep looking.

Be careful. A lot of banks/realtors play the "there are other offers make another one that is higher..." game.

So don't offer more, just keep looking.

I intend to keep looking. What amazes me though, is that this house was first listed on Thursday of last week.

 

[T9D]

Every time I see one sell 3 more come up cheaper. Usually people jump on the one that is the best right now but to many others are sitting or being foreclosed. And so they load up the market with even cheaper homes. Then a few people jump on the new lower price and 'deal' of the bunch. After that more come on cheaper than that. There still is not enough demand. Home prices are still ratcheting down.

Hold to your guns if you want one at a certain price. Dont jump on anything or get to emotional about it. Plenty out there. Looks like you have a lot to choose from anyway: http://www.realtor.com/realest...mily-home?sby=1&pfbm=4

Remember every time one of those sells it brings the comps down. So it's good when you see some of these apparent 'deals' go.

 

[oiprocs]

blog.anandtech.com

 

[mrrman]

Originally posted by: tk109
Every time I see one sell 3 more come up cheaper. Usually people jump on the one that is the best right now but to many others are sitting or being foreclosed. And so they load up the market with even cheaper homes. Then a few people jump on the new lower price and 'deal' of the bunch. After that more come on cheaper than that. There still is not enough demand. Home prices are still ratcheting down.

Hold to your guns if you want one at a certain price. Dont jump on anything or get to emotional about it. Plenty out there. Looks like you have a lot to choose from anyway: http://www.realtor.com/realest...mily-home?sby=1&pfbm=4

Remember every time one of those sells it brings the comps down. So it's good when you see some of these apparent 'deals' go.

Crap...I could pay that off within 2 years

 

[Slew Foot]

Originally posted by: mrrman

Originally posted by: tk109
Every time I see one sell 3 more come up cheaper. Usually people jump on the one that is the best right now but to many others are sitting or being foreclosed. And so they load up the market with even cheaper homes. Then a few people jump on the new lower price and 'deal' of the bunch. After that more come on cheaper than that. There still is not enough demand. Home prices are still ratcheting down.

Hold to your guns if you want one at a certain price. Dont jump on anything or get to emotional about it. Plenty out there. Looks like you have a lot to choose from anyway: http://www.realtor.com/realest...mily-home?sby=1&pfbm=4

Remember every time one of those sells it brings the comps down. So it's good when you see some of these apparent 'deals' go.

Crap...I could pay that off within 2 years

I could buy that block in cash, but f'n CA thats not even a down payment on a house in a decent neighborhood.

 

[Bateluer]

Originally posted by: tk109
Every time I see one sell 3 more come up cheaper. Usually people jump on the one that is the best right now but to many others are sitting or being foreclosed. And so they load up the market with even cheaper homes. Then a few people jump on the new lower price and 'deal' of the bunch. After that more come on cheaper than that. There still is not enough demand. Home prices are still ratcheting down.

Hold to your guns if you want one at a certain price. Dont jump on anything or get to emotional about it. Plenty out there. Looks like you have a lot to choose from anyway: http://www.realtor.com/realest...mily-home?sby=1&pfbm=4

Remember every time one of those sells it brings the comps down. So it's good when you see some of these apparent 'deals' go.

Some of those sub 60K homes are in some 'rough' neighborhoods.

 

[T9D]

Yeah I realize that. But the point is it's falling all over and getting cheaper and doing thorough searches you start to find good homes in good areas for less and less. Still got to weed through them though and be patient.

I was looking at places in Arizona to. Not sure if I'd move there but sometimes I see houses like this in a decent area that I could buy with cash and it's tempting. Over 3000 square feet and almost brand new for around $120's : http://www.realtor.com/realest...e?sby=1&sqft=13&pfbm=4

Plus you start looking in the $80K's and start offering in the $60K's. Lot more choices there and you'll probably get a bite eventually. Or $100K and offer $80K's.

 

[Hacp]

Originally posted by: Bateluer

Originally posted by: tk109
Every time I see one sell 3 more come up cheaper. Usually people jump on the one that is the best right now but to many others are sitting or being foreclosed. And so they load up the market with even cheaper homes. Then a few people jump on the new lower price and 'deal' of the bunch. After that more come on cheaper than that. There still is not enough demand. Home prices are still ratcheting down.

Hold to your guns if you want one at a certain price. Dont jump on anything or get to emotional about it. Plenty out there. Looks like you have a lot to choose from anyway: http://www.realtor.com/realest...mily-home?sby=1&pfbm=4

Remember every time one of those sells it brings the comps down. So it's good when you see some of these apparent 'deals' go.

Some of those sub 60K homes are in some 'rough' neighborhoods.

But if you buy the entire block and rent it out to non-tough people, the neighborhood suddenly becomes a a decent one! Look for retired cops and army veterans.

 

[Aimster]

When you put an offer on a house do you need to already be approved for a loan by the bank?

 

[Bateluer]

Originally posted by: tk109
Yeah I realize that. But the point is it's falling all over and getting cheaper and doing thorough searches you start to find good homes in good areas for less and less. Still got to weed through them though and be patient.

I was looking at places in Arizona to. Not sure if I'd move there but sometimes I see houses like this in a decent area that I could buy with cash and it's tempting. Over 3000 square feet and almost brand new for around $120's : http://www.realtor.com/realest...e?sby=1&sqft=13&pfbm=4

Plus you start looking in the $80K's and start offering in the $60K's. Lot more choices there and you'll probably get a bite eventually. Or $100K and offer $80K's.

There are some nice homes in Queen Creek, no doubt there. Problem is, its not where I want to live. Queen Creek is in the far south east valley, almost the exact opposite of where I want to live. I'm centering my focus on the west valley area.

I have time to continue looking though. My lease at my apartment expires on 31 June, and I need to turn in paperwork by 31 May in order to avoid any early termination fees, which are a b*tch at this complex. I'll be meeting with my agent today to discuss some other properties to see if they are still available. I refuse, however, to make a formal offer without having been inside the house myself. Pictures only go so far and are usually older.

Originally posted by: Aimster
When you put an offer on a house do you need to already be approved for a loan by the bank?

Not really, but its helps expediate the process if you already know what you've been approved for, what you can afford, etc.

 

[Bateluer]

Bah, one of the prior offers was a cash offer above the asking price. So I've pretty much lost it. Dang, it was a nice place, the cost in money and effort for me to repair it would have been minimal. 🙁

Still got several others I'm interested in though, and there are usually a few that trickle in during the week.

 

[alkemyst]

In reality cash vs a loan shouldn't matter as in the end it's paid out as cash....being it was the highest offer was the key here.

 

[Bateluer]

Originally posted by: alkemyst
In reality cash vs a loan shouldn't matter as in the end it's paid out as cash....being it was the highest offer was the key here.

I would think a cash offer would be of greater value to the lender. There's no risk of another foreclosure on a loan and the lender gets the property off their books.

Regardless, that house is out. 🙁