Posted by Joey D on November 12, 2002 at 11:52:05:
If this home is trashed, then I suspect that it went into forclosure and the previous owners lost the property and explains why they left it in such condition.
This deal seems like there are a few things that can be negotiated, speicifcally around the repairs and selling price.
If you agree to take care of the fix up costs, then you may be able to negotiate a lower buying price - this may be good if you know someone that can do the work pretty cheap - make sure you have references if you do not personally know them.
If you do not want the headache of doing the repairs, then you can negotiate the seller to fix up the property before you agree to purchase. The price may go up more than you want it to, depending on how much work they put in to it and how much the value rises after thier work.
If this is bank owned, then they usually just want to get rid of it very fast and will not want to deal with getting it fixed up - this is where you may beable to make a case and get them to accept a lower bid.
You should get someone out there to price out how much the property needs to get it to living standards and into consistency with other homes in the neighborhood.
Then you can go to the seller and make your case. Take some pictures (take them of the places poor features), have some numbers and then make an offer.
Investigate the values of other similar homes in the neighborhood and see what type of condition they are in. This will give you a good idea of where this place falls.
If you plan on renting find out what rents in the area are and other information like , Capitilization Rate and Net Operating Income of other rentals in the area.