Hi, first time home buyer. I found a REO house over 3000 sq ft. why the sale price is ONLY $27,000, isn’t it too cheap for a house like that, or does it mean something else because it is a REO house. Thanks for any help
House Buing Newbie
You might want to stay away from this property. Although it may look good on the outside, chances are that this is not a good buy. Since it is an REO property, the amount is what is owed that also includes court costs. Just because its a 3000 sq ft house it more than likely could be a money pit.
If you want to make an offer, I would suggest you get a home inspection (paid for upfront) so that you know the roof is ok, the foundation is not a problem, it is not in a flood zone,there is no mold,insulation is adequate,plumbing is not a problem. The inside is not all torn up by previous owners such as holes,pipes missing,etc. You can’t base it on if there are appliances or not, if carpet is bad and if it is in need of paint. Those things are what you are really looking for if you buy a fixer.
You might want to stay away from this property. Although it may look good on the outside, chances are that this is not a good buy. Since it is an REO property, the amount is what is owed that also includes court costs. Just because its a 3000 sq ft house it more than likely could be a money pit.
If you want to make an offer, I would suggest you get a home inspection (paid for upfront) so that you know the roof is ok, the foundation is not a problem, it is not in a flood zone,there is no mold,insulation is adequate,plumbing is not a problem. The inside is not all torn up by previous owners such as holes,pipes missing,etc. You can’t base it on if there are appliances or not, if carpet is bad and if it is in need of paint. Those things are what you are really looking for if you buy a fixer.
References :
16 yrs real estate
Title & Escrow
Loans
As a home inspector I see a lot of REO houses. Most have a lot of cosmetic defects such as damaged drywall, peeling paint, and just a plain mess all around. Sometimes I will find bigger things such as missing copper pipes, furnaces in need of service, roofs in need of repair. All of these things a home inspector will tell you about in the report. If you decide to purchase this property I would make the sale contingent on a home inspection. That way if there are too many issues that will cost you too much, it won’t turn into a money pit. Make sure when the home inspector is there to have all of the utilities turned on. Otherwise the home inspector cannot perform his job correctly and fully. Just my 2 cents.
References :
Home Inspector for AmeriSpec Home Inspection Service