First time buyer questions

**Jackobear** · 10-13-2009, 02:06 PM

Hello,
I found a decent looking house for cheap that has turned out to be a bank foreclosure. It looks like it has an addition that isn't in good shape, and its not the best neighborhood, but the street is nice imho. I contacted the company that is supposedly trying to sell it. They want proof that I can buy it in full and in cash before they'll even show the place to me. I saw it in person and it has a combo lock on the front door. Is there really a law (possibly PA state law) that says they must have this proof before they can show it? The guy on the phone said that he doesn't wanna waste 2.5 hours to show the house if I have no proof first. I know of at least a couple houses that have these combo locks on them, and the owner (whoever) just gave the potential buyer the combo lock over the phone in order to check it out. (seems most reasonable, if naively trusting, and possibly illegal?) ...admittedly tho that place was literally falling apart in the ghetto.

The fact of the matter is that I'm really interested in buying the house, and I can round up the money (most likely after a price is agreed upon, and assuming there isn't a huge problem w/ it structurally), but frankly, the seller seems so disinterested in selling that it seems I have to be very determined just to see the inside of the place. Maybe its gov't interference, or something I haven't thought all the way through, but you would think that somebody selling something so valuable would be very eager to accommodate *any* potential buyer. I've done more work selling small computer parts than they are willing to do in order to sell an entire house. What gives?

Thanks

**Greg** · 10-14-2009, 04:51 AM

The problem is the house is in such bad shape it will not qualify for a conventional loan so you will need cash to buy it or a rehab loan.

The first mistake you made was calling the number on the sign. This agent works for the seller and is not going to look out for you. Get on the internet and interview some local agents until you find one who is knowledgeable and willing to be your buyers agent. This should be free and if they want you to sign something which commits you to pay then find another agent.

Your buyer agent will be able to get you into this house and any others. You should shop around for a while before you make the leap so you are familiar with what the market has to offer.

**Jackobear** · 10-14-2009, 12:02 PM

Neither agent I spoke to wanted a commitment to pay, but rather proof that I could pay (in full and in cash). I guess a bank statement or something similar. The critical part of the puzzle I was missing is that I forgot that banks dont give a ****. The agents aren't going to make much of a commission since it cheap and the bank that is selling it doesn't care if it falls apart (and the neighborhood along w/ it) cuz there is 'real' money to be made elsewhere. So I guess I hafta get the money together first...pretty lame...I don't like paying banks anyhow...makes me wanna look for another place...

**JRamirez** · 10-14-2009, 04:39 PM

You are probably going to have to deal with that in every situation!

**Jackobear** · 10-15-2009, 12:10 AM

Is it true that foreclosed banks' asking price is practically non-negotiable since its a bank selling it and they won't budge?

**icurpoint** · 10-15-2009, 05:30 AM

One bit of advice...unless you are very savvy about determining the complete condition of the house and all of the systems I would recommend having a good home inspector go through the house before you sign on the dotted line. Many of these foreclosures on the market today have many, if not serious problems, that require a lot of fix up money. I have turned over many doing most if not all of the work myself but I have passed on 10 times as many because of hidden problems that were not obvious at all. Good luck!

**Nick Brian** · 10-15-2009, 11:09 PM

Hi there must be some other agent who can work for you. House like this obviously is low priced and that attracted you. But Before you buy the property assume as much possible the ARV.

**JRamirez** · 10-22-2009, 04:12 PM

find an agent that works with the banks directly and get one before it hits the market.

**jeremiahpeterson** · 10-23-2009, 12:05 AM

Well, you could always get your own license if you were serious about buying the lower end properties. It would probably good to brush up on all the material anyhow if your thinking about investing.

**jeremiahpeterson** · 10-23-2009, 12:09 AM

Originally Posted by icurpoint

One bit of advice...unless you are very savvy about determining the complete condition of the house and all of the systems I would recommend having a good home inspector go through the house before you sign on the dotted line. Many of these foreclosures on the market today have many, if not serious problems, that require a lot of fix up money. I have turned over many doing most if not all of the work myself but I have passed on 10 times as many because of hidden problems that were not obvious at all. Good luck!

haha dave's right. my father (General contractor) use to say...just let me see the outside of the house and I'll tell in 15 minutes if it's worth buying.