Real Estate.is it time to buy?

[lyon]

I am looking at a house that has been foreclosed on over a year ago. It is a huge victorian built in the 1890's in nice shape, the price has been steadily getting lower over the past few months. it is listed now for about 250k, was 400k to start. I am thinking about making an offer. Is it time to buy or will the market go even lower? What would be a good offering price to test the waters?

[fintstone]

If you really want the place. Don't forget, others are doing the same as you...trying to time the bottom...I would consider buying now. Interest rates are low. IMHO, if the market is not at the bottom...it cannot be far from it.

[lyon]

Yes indeed, it is an attractive time to get in on a deal. Even if it has not completely bottomed out, I think they will move on a reasonable offer.

[schamp]

Are you going to live in it or flip? Remember on foreclosures, they put in a little clause where you can't sell it for a few months. Didn't bother me cause was going to take that long to fix up. Just a thought.

[Hugh R]

See if you can somehow find out the loan amount they foreclosed on. A realtor might be able to help, or what the tax base was.

[tabs]

One question how much has your local RE increase during the recent run up. If it didn't get out of whack, prices won't decline radically.

We are no where near the bottom. This is going to take some years to work out, expecially in places like CA. There is going to come a time when you can't give RE away for love nor money. This bubble has to deflate, back to where an average joe can afford an average home on his wages.

If they are asking 250K...offer 190K and see if they bite...there are other fish in the sea, gona be lots of them.

[lyon]

I am going to offer 175 and see what they say. This is the kind of house that would cost about 2-3 million to build today, it seems like everyone wants the plastic suburban houses these days

[tabs]

Actually I wanted to say 175K, but the 190K would be a bit more realistic

My thinking is that you should think mid 2003 prices.

[Porsche-O-Phile]

The market is a LONG way from the bottom. This is going to get much, much worse before it gets better. If you're in the market and conditions now are good enough for you and you're not trying to turn a profit or break even on rental versus carrying costs, I'd say go for it. Otherwise I'd plan on waiting at least 2-3 years before you even thing about seeing the bottom.

[MT930]

If the house is something you can see your self in for a long time 5+ years. And you can get in to it without getting over leveraged. Do it! Find a seasoned broker to represent you and start taking low shots until, you can find the number that’s going to work. Make it contingent for a couple days on additional walk through and of course a pre purchase inspection. And if it feels right pull the trigger. Do not pay more that you are willing to up front. Buy it right you will be safe.
Good Luck

[lyon]

I met with the broker this evening, filed out the paperwork and he will expedite it tomorrow. We wil see what happens. I can see my family and my 911 very happy there for many years to come.

[tcar]

You know what it costs to heat it? Cool it? That's always a BIG issue w/ old houses.

[MattKellett]

If this is a property you can afford, then why not.... but i think a major cost in this property would be the up keep and maintenence. Older homes come with character but the downside is the costs of ownership. I would make sure that you have the property thoroughly surveyed.

Matt

[Rick Lee]

That house is HUGE! That would be well into the millions even in the bad neighborhoods around here.

[GDSOB]

Originally Posted by Porsche-O-Phile

The market is a LONG way from the bottom. This is going to get much, much worse before it gets better. If you're in the market and conditions now are good enough for you and you're not trying to turn a profit or break even on rental versus carrying costs, I'd say go for it. Otherwise I'd plan on waiting at least 2-3 years before you even thing about seeing the bottom.

On average, yes it is a long way from bottom, especially in the "boomiest" areas. The national real estate market is just many local markets combined. Who knows, your local Wisconsin market may be at the bottom now, or close to it. Your local market data will tell you.

Looks like at winner at anywhere near 200k.

[Chocaholic]

Originally Posted by Porsche-O-Phile

The market is a LONG way from the bottom. This is going to get much, much worse before it gets better.

I think this is really market-dependent. Possibly true in California, but not likely everywhere else. Taking that advice, he'd need to wait until the asking price is what...$90k? Not likely.

If you can snag it for under $200k, I don't see how you can lose.

[JavaBrewer]

Nice looking house but also a potential money pit on repairs. Please don't go under contract w/o a professional PPI. I don't know about your area but I think the time to buy RE in Cali is somewhere around early '09 - depending on interest rates. If you find a distress sale (like this house) then you might be able to swing a '09 price today.

I'm not sure what to make of my current market. My neighbor just bought a house that went to bank auction. It's the exact model and style he currently lives in but the newer one has larger view lot. He moved in and is selling his previous home (remember same floorplan/model) for $240K over what he paid for the auction home... Around the corner the same floorplan/model home with lots of upgrades, pool, huge lot but no views, is selling for another $375K over that. I don't see how folks are coming up with the prices. Homes really stalled here for most of 2007 and I expect the same for '08 and '09. If interest rates go North then more pain to follow. That said I'm surprised at how many homes are still moving in this area.

[the]

what would it have sold for at the peak in your market, and when was that?

How much would it rent for?

[hytem]

To those of you who say the market hasn't reached a bottom yet, I say stop listening to the gloom and doom media. The time has never been better to buy. Interest rates will never be lower and prices are about as low as most sellers will go. It's a smart buyers market.
And by the way. Avoid ARMs. Better known in the media as "Sub-Primes". 5 years from now, when the prime is at 8%, you'll be sorry.

[JeremyD]

What is the bottom for CA, FL or NV will probably not be the bottom for WI -

Buy a home with location and square footage in mind - don't over leverage yourself - buy within your means -

Maintenance can kill you in an older house - I wouldn't buy one unless you are pretty handy can upgrade things as you can afford them.