Cheap real estate deals

[phaedo]

With the economy as it is I am sure there are good real estate deals to be had. However, I am not that sure of all the ins and outs of buying property in the states, as I am not living there. I am sure there is more to it than it appears, but what is the full story on places listed on ebay such as this one? http://cgi.ebay.com/GORGEOUS-UPDATES-BEAUT...1QQcmdZViewItem

I just followed a previous listing they had which sold for under $5,000 with 21 bids in the end. Are these deals too good to be true? Or what is actually up with the super-cheap price. Sure, times might be a little tight right now, but it seems there is no outstanding mortgage on the property, so the winning bid buys it outright. Rent it out for even $50 a week and you cover the rates and the interest on the loan (if you were to take a loan on the full price listed), and in 5 years time when things start to get better again sell it for proper market price. Of course, this is just one example, the neighborhood might be bad, the house may need demolishing, there may be no work around, etc etc but on the face of it, what is the full deal?

[bosk]

With the economy as it is I am sure there are good real estate deals to be had. However, I am not that sure of all the ins and outs of buying property in the states, as I am not living there. I am sure there is more to it than it appears, but what is the full story on places listed on ebay such as this one? http://cgi.ebay.com/GORGEOUS-UPDATES-BEAUT...1QQcmdZViewItem

I just followed a previous listing they had which sold for under $5,000 with 21 bids in the end. Are these deals too good to be true? Or what is actually up with the super-cheap price. Sure, times might be a little tight right now, but it seems there is no outstanding mortgage on the property, so the winning bid buys it outright. Rent it out for even $50 a week and you cover the rates and the interest on the loan (if you were to take a loan on the full price listed), and in 5 years time when things start to get better again sell it for proper market price. Of course, this is just one example, the neighborhood might be bad, the house may need demolishing, there may be no work around, etc etc but on the face of it, what is the full deal?

fed law require that the house be in a livable state so u may have to sink more money in it after purchase. houses are being sold for 5K but buyers sometimes have to sink in another 20-50K to make the house "livable" following inspections.

[KB]

Well quite obviously it's haunted.

Don't know anything about them but this line here sends a pretty strong message....

Purchaser agrees to accept the property in "AS IS, WHERE IS" condition at the time of closing, with NO WARRANTY EXPRESSED OR IMPLIED. Any representations of this property are merely the opinion of the seller. All buyers are encouraged to perform their own due diligence.

I wonder if the house is cut into sections and sitting on 44gal drums out in some country paddock?

Ken

[phaedo]

fed law require that the house be in a livable state so u may have to sink more money in it after purchase. houses are being sold for 5K but buyers sometimes have to sink in another 20-50K to make the house "livable" following inspections.

But if it is not occupied would this still be the case? And what if you were to knock the house down?

Ken, you are still buying the land the where the house is supposed to be, so even if it is somewhere else in drums, you have the land. Just push the barrels into the lake when nobody is looking.....

[spider87]

I would love to know what is up here too... I am currently(in a month or so) looking for an apartment/house and if I can get something this cheap will probably just buy it out right.....I mean I'm seeing houses all around Pittsburgh and stuff on here foreclosures with supposedly clean records... I mean I planned in this case if we got a house to have to fix it up some and if I can visit it why not?? But there is always some catch... America as a whole isn't stupid and if this opportunity was this simple everyone would be snatching up?

...Is this a stack of phone books in the bathroom?

Phone books?

Edited March 1, 2009 by spider87

[tomhorn]

In this particular home's case, it's not in a great neighborhood. Other homes in the area are also selling below $15,000, and a quick check online shows a few additional foreclosures in the area selling for cheap which is not a good sign. Judging by the pictures, it looks like someone was trying to rehab the house and flip it, and probably found it was just going to be too expensive to finish it off relative to what they were going to get for it if they could even sell it.

The "as-is, where-is" clause is common on about to be forclosed, or bank owned properties. The fact that it is in the eBay listing is not a big red-flag in and of itself. The price and location are, however.

If you have the cash, or are approved for a loan, then over the next six months will be a good time to buy here in the US. Buying a foreclosed house can be a good deal, but not all foreclosures are. You have to do your research.

For example, I am condo shopping in Florida right now. I recently looked at a place that sold for $285k in 2004. At the peak of the market in 2005, similar units in the building were selling for about $350k. It's been foreclosed on, and is on the market now for $225k and my real estate agent friend said he thought it could be bought with an offer of $200k. Condo is in perfect shape and would be a great deal for someone who is going to own it for a while. There's another foreclosure in the complex of essentially the same floorplan which is listed at $285k. That one would be a bad deal at this point. I was looking for something on the water, so I didn't buy it, but there are deals like that all over the place if you look hard and have patience.