Hi Mike, maybe you can help me decide how much to bid on a house I want. They were asking $290k this summer (hey guys, this is metro Washington, it's a 4 bedroom, 3 bathroom, so give me a break). It's still for sale, they dropped to $270k. I did some snooping. A broker friend told me the listing agent just takes $300 to get MLS listing, but it's really a FSBO. The owners are divorced, he lives in South America, she lives in Europe. It was rented, tenants just moved out this month. Real estate assessment is about $238K. A title researcher friend who lives in community says that real estate assessments are pretty close to market value.
Owners bought it in 1991 for $237K. Assumed a note with $132K, presumably paid the rest cash, but later took out a $50K and a $20k note with the house as collateral. I am guessing maybe $200K is owed.
The wrinkle is the new addition, over the garage, a home office and they expanded the kitchen, but it wasn't done exactly right, so the roof leaked, and there is slight structural damage to the wall and kitchen floor, which I don't think the present owners can afford to repair. Also, due to years of renting, it's run down, but otherwise ok. I had an architect friend take a look at it, he says it's sound, but that it won't sell for top dollar in the condition. He suggested I bid $225K.
Anyone care to offer an opinion? I am a lawyer, share space with people who have handled real estate and foreclosures, so I can handle the contract part ok.
Any suggestions appreciated.
CobaltBlue |
