What's a reasonable offer on a foreclosure listed at 149k and city assessed at 206k?

What is a reasonable offer on a foreclosure that is listed at 149k and the city assessed it previously at 206k?  This is in a middle class South Eastern Wisconsin neighborhood (Kenosha, WI). 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 07 2009 - Kenosha
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (12)

When you buy a foreclosure property, you have to realize that the people on the other end have no real emotional attachment to the property.  To them, this is a file that needs to get resolved.  Most Asset Managers work off a protocol.  The price is set based on several BPO's and appraisals.  The house is listed and systematically reduced until it is sold.  The longer the house sits, the lower the price goes.  If you are the only person making an offer, you have the luxury of starting lower.  I personally wouldn't try anything less than 80% of list price.  If you are one of many...then make the best possible offer you can...where you won't be disappointed if you don't get it.  Best of Luck!!!

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 11 2009
Depending on location, condition and last sale price( that can be found in the tax records or at the court house).....149K sounds like a good price as it is...I would think 135K is in the ball park.

-Sean Malo
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 10 2009
Profile picture for VegasResident
"The bank is asking 149 like I said.  However, in 1999, which was the last purchase price, it was purchased for 137.  I'm guessing what was owed on the house is nowhere near 149k."

Depends. I saw a foreclosure where the house sold in 2002 for $210,000 but in 2007 the owner ran up equity loans to to tune of $490,000.

So the previous sales price might not be related to the true debt on the home.

Check at the assessors and recorders office because the usually you will see a document that shows what the bank was owed when it took it back as this will be filed.


  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 10 2009
Hey guys, here's an update from when I looked at the house yesterday.  Maybe this will further help someone give me a better idea of an offer.

There is no damage done to the house (as might be seen in a lot of foreclosures) basically a lot of clean up.  The people left quite a big of their stuff there.  Then it absolutely needs new carpet throughout the house and in the basement.  The water heater, a/c, furnace etc are all a few years old.  The roof probably had another 5-7 years on it. 

The bank is asking 149 like I said.  However, in 1999, which was the last purchase price, it was purchased for 137.  I'm guessing what was owed on the house is nowhere near 149k.

I was thinking a pretty good offer on it might be 115k with a full approval letter and 5k in earnest money (as oppose to the minimum of 1000)

Thanks guys!  Please get back to me, I have a feeling I need to move fast on this!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 08 2009
A bank owned isn't a flexible as a shortsale.  Offer 129-135k 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 07 2009
Thanks for all the advice guys!  I was thinking of an offer around 130-135k.  We are actually going to look at the property tonight and obviously I will get a better idea of what would NEED to be done.  Then of course, if everything seems fairly stable (if the previous owners didn't destroy anything on the way out). I will probably hire the inspector and go from there. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 07 2009
Profile picture for sunnyview
I think Nathan makes a really good point on making your offer as clean as possible along with full approval letter. The bank wants the most money possible on the easiest close possible. If they feel that you are solid as a buyer and know what you want, I think you have a better chance overall.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 07 2009
If it is a foreclosure, all bets are off. Make any offer you want to make. Ignore the tax/city assessed value. This is based on a previous year's value.


You should determine if there is work to be done to the property and subtract this from your offer with a written estimate from a contractor to prove the value of the repairs required. You can also call the listing agent to find out of the bank has previously rejected offers that were too low, and at what price and terms they were rejected.


Also, it's not always about the price. If you can pay cash, or have a FULL APPROVAL letter from your lender stating you are ready to close your loan, this often makes a big difference. Also, if you can close quickly this will also help you get the best price. A buyer agent can help you determine a good offer price and all of the other terms the bank is going to want-- including a deposit/earnest money deposit.


If you can put down a larger deposit/earnest money this makes the bank pay attention to your offer more seriously since you are putting your money on the line that you are ready to close at the price you are willing to pay.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 07 2009
Profile picture for sunnyview
Gosh I don't know the area at all, but if condition is not a major issue what about an offer for $136,000? That would get rid of the bubble values completely and give you some wiggle room for updates. It would be close enough to the banks own number for them not to reject it out of hand. I don't know. Do you have a number that you think it's worth?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 07 2009
Well, the house was sold in 1999 and sold for 138k.  This area has steadily increased in values of homes and home prices. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 07 2009
Profile picture for sunnyview
The city assessments may not be a number you can really use. Many of them are in favor of the city collecting taxes and not a true reflection of value. The bank appraisers vary in quality just like anything else. Before you make your offer, you need to see what the recent comps have sold for like the house you are looking at and then subtract the cost of whatever work may need to be done. Many banks have no concept of the cost of doing rehab work and appraisers are not trained in that area either. If you estimate the cost to completing the work on the house minus the last recent sale that is similar minus another 5-10% you should be close on price as long as your area is not still strongly dropping.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 07 2009

In our area prior to putting on market the banks usually get about 3 appraisals before they determine list price.
How long has this home been on the market? How many active homes for sale are in competition with this property? What kind of repairs or upgrades are needed? Will this be a rental property or owner occupied? What has overall sales been recently with comparable homes? What is fair price is the price you are 100% comfortable making after determining the factors above . Contact your local realtor to get comps for recent solds. Make sure if you do bid on this home to get your inspections as part of a contingency period. We have had copper plumbing pulled out, electrical sabotaged, cement poured down the toilet and a myriad of other issues. Good Luck!

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 07 2009
 
Related Questions
I would like to make a offer of $157,900 foreclosure listed at $234,000 owned by Fannie Mae
Profile picture for Robin and Gene Coleman
Latest answer by Robin and Gene Coleman
May 12 2010 | 8 answers
What's a reasonable offer on a foreclosure listed at 149k and city assessed at 206k?
Profile picture for Martin Tauger
Latest answer by Martin Tauger
April 11 2009 | 12 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 1918 38th St, Kenosha, WI Home For Sale
    1918 38th St, Kenosha, WI 53140

     For Sale: $124,900

    • Beds: 3
    • Sqft: 1382
    • Baths: 1.0
    • Lot: 5227
  2. 11008 67th St, Kenosha, WI Home For Sale
    11008 67th St, Kenosha, WI 53142

     For Sale: $289,900

    • Beds: 4
    • Sqft: 2773
    • Baths: 3.0
    • Lot: 16552
  3. 2810 23rd Ave, Kenosha, WI Home For Sale
    2810 23rd Ave, Kenosha, WI 53140

     For Sale: $153,900

    • Beds: 3
    • Sqft: 1222
    • Baths: 4.0
    • Lot: 5227