I'm in the market for my first house. With the economy I feel like I would be dumb to not pick up a home before the prices go up again.
I found a house I like, in the area I want to be. It is a short sale listed at $179,000. Apparently there is no guarantee of what the bank is looking to get, So I could potentially even offer 179 and have them say no.
One of my friend's Mom's is a commercial realtor and she suggested offering 25% less than what they are asking, because that is the margin of how far the bank is willing to go (typically).
I am new to all of this, so I was wondering if anyone has any advice for:
-First time home buyers
-Short sale home buyers
-Anything else related to this.
Thanks! I know there are a lot of really smart people on here so hopefully some of them chime in with their experiences and knowledge.
Update: here's some more info that may be important to list up here.
-I was pre approved for $250k but realistically won't be able to afford more than $200k
-The house does have the current owner living in it, and she has been taking good care of it, but she owes more than the house is worth so she wants out.
-The house, as listed on zillow.com, has a tax assessment of $238k which breaks down to $175k for land and $63k for house
-It has 2 beds, 1 bath, small eat in kitchen, nice size living room, slab foundation (no basement), 50'x110' property, no room for garage but it has a nice shed, nice deck/patio, very private/wooded property.
-I think it will be a good starter home for myself and eventually my girlfriend. I like that it is small so it will be reasonably affordable to furnish and to heat/cool. I also like that it has a pretty small yard so I won't have to waste a lot of time taking care of it.