First Time Home Buyer – Tips?
My boyfriend and I are in the midst of bidding on a home in Warwick, RI. We love the set up of the home. There are some problems with the property, though. The furance is dead, the house needs siding, there is some dry rot on the window sills, and there is mold in the basement because of a burst pipe, and the yard is in terrible shape. The home was built in 1955. The home is also right now a bank owned property, foreclosed on a few months ago. It is also very dirty, some of the floor and carpeting must be replaced. The home was put on the market for 9k, and another home a street over was priced the same, but has no issues whatsoever, sided, beautiful. The home is assessed for tax purposes at 4k. The last mortgage on the house was for 7k total. Because of all the work, we bid low, at 0k. What are the chances the bank would accept, or counter with a similar price (under 0k). The house has been market 32 days, and there are tons of other foreclosures in this area.
I am just looking for some some info, what people think we could get the house at, etc. We are also putting k down, and put that we were willing to close in 30-45 days.
A Little More Info, We have been pre-approved for our mortgage, and were qualified for a 100% financing, but want to put at least the ,000 down. 
Tagged with: 9k • bank owned property • burst pipe • carpeting • dry rot • foreclosures • furance • midst • mold • mortgage • tax purposes • terrible shape • warwick ri • window sills
Filed under: First Time Home Buyer Tips
What is the worst the bank can say – no?? If it’s in forclosure, they usually want to get rid of them. I would make sure the Foundation is secure, if not you are going to pay ridiculous costs to have it redone. Also, the mold is a terrible issue. My dad’s sump pump quit working and he hadn’t gone to his basement in weeks and it was flooded. It took close to $40,000 to get the mold problem under control and given a clean bill by a health inspector. So, with everything else you have going on like the furnance and the siding which are extremely expensive to replace, I would think a bank would jump at an offer of $190,000. You are going to have at least $50,000-$100,000 in fixing it up!
As for the person in California, we have a ranch home that we built 10 years ago and it’s on 3 acres. In California, our property would appraise for at least $2-$3 million! Thank goodness we don’t live there – couldn’t afford it. The home cost us 5 figures to build.
Just remember, it this house is meant to be yours, it will happen. If it doesn’t, realize that there is something else out there waiting for you.