New home - Trashed out - Posted by Bob B. (MO)

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.

Good Luck
Joey D

New home - Trashed out - Posted by Bob B. (MO)

Posted by Bob B. (MO) on November 12, 2002 at 08:33:19:

I had a question on how to work a deal that I came across. My partner and I found a property that is only four years old. When the owners moved out, they totally trashed out the house. By looking in the windows we can see broken furniture, pots and pans with food in them, beer bottles and other trash. The house is now “Corporate” owned and is being sold AS IS. It is listed about 13,500 under appraised value.

Now on to my questions…

  1. When a listing states it is “Corporate” owned, what does that mean?

  2. We do not want to take possession of the property until the cleanup/repairs are made. We are more than willing to do the work, but want to get the owner to front the money to do the repairs and then we roll it into the price of the house. Is this the best way of going about it?

Any help would be great…

Bob B.

Re: New home - Trashed out - Posted by Mattk

Posted by Mattk on November 12, 2002 at 21:09:09:

“Coroparate Owned” means it is a bank REO. The bank took the house due to non payment of the loan.

They usually are sold as is, meaning you do the necessary repairs.