House Hunting question

[MarkAF43]

So I'm coming here asking for anyone with some expertise. The wife and I are looking for a new house, and I know the usual sites to search, but does anyone know of a way to find out why a particular house may be significantly lower priced than others in the same area/neighborhood (15-25K difference). I know we can talk to an agent, but is there any info on the interwebs that would provide further detail outside of what you see on the usual suspect sites?

[NoSaint]

Go look at it?

 

Could be a quality issue, or repairs needed. Could just be trying to draw extra interest.

[plenzmd1]

So I'm coming here asking for anyone with some expertise. The wife and I are looking for a new house, and I know the usual sites to search, but does anyone know of a way to find out why a particular house may be significantly lower priced than others in the same area/neighborhood (15-25K difference). I know we can talk to an agent, but is there any info on the interwebs that would provide further detail outside of what you see on the usual suspect sites?

Good question, and i don't know the answer. This site may help a bit.

 

 

 

https://hometrackr.com/

 

Really not all that accurate on my house, has some of the work done, but not any of the insurance claims...which is really important.

 

Maybe google carfax for homes and search the results..i know about 3 years ago i read where the insurance claims on homes would be available just like carfax..but could not find after 20 seconds search.

 

BTW, my hunch is a neighborhood where most of the kitchens/baths have been redone but this one has not..or some sort of water damage etc.

[BringBackFergy]

Possible reasons for lower priced home:

 

1) Estate owns it and the executor wants to sell quick;

2) Owner is under water in debt and wants quick sale (see this a lot in a divorce or loss of a job);

3) Short sale (amount owed exceeds value so they want to get it sold);

4) Mechanical problem the owner can't fix;

5) Realtor doesn't know what they are doing and priced it too low;

6) Ghosts;

7) Was the site of a mass murder where there is still blood on the walls or ax handles in the bedroom door.

[Gugny]

Use realtor.com.

 

I've noticed, in the past, that houses that are significantly lower-priced than others in the same area are "short sales."

 

I don't know a lot about short sales, but I know that they typically happen when the sellers can no longer afford to pay for the home and the lender is agreeing to allow the house to sell for less than what is owed.

[Just Jack]

Use realtor.com.

 

I've noticed, in the past, that houses that are significantly lower-priced than others in the same area are "short sales."

 

I don't know a lot about short sales, but I know that they typically happen when the sellers can no longer afford to pay for the home and the lender is agreeing to allow the house to sell for less than what is owed.

My house was a short sale. One thing to remember also is in a short sale the owner has no say in which offer is accepted, the bank decides.

[unbillievable]

The only way to know online is to check if it's a foreclosure, auction or short sale. A lot of the times, "bank owned" also means it was foreclosed. Another indicator is how many times the house has been sold. Multiple sales is a red flag something is wrong.

 

If the reason is because of some problem wih the house itself, then there is no way to know unless you visit the premises or ask your realtor. Some states won't even let the history of the house be revealed. Sometimes, just googling the address will help. Maybe there was a meth lab next door.

 

It's also good to know that you can back out if the inspection finds something. So be sure to get a good one. Don't skimp on ten's of dollars what could cost you thousands.

Possible reasons for lower priced home:

 

 

6)Ghosts

 

 

Ghosts actually raise the prices.

Edited July 26, 2016 by unbillievable

[MarkAF43]

The only way to know online is to check if it's a foreclosure, auction or short sale. A lot of the times, "bank owned" also means it was foreclosed. Another indicator is how many times the house has been sold. Multiple sales is a red flag something is wrong.

 

If the reason is because of some problem wih the house itself, then there is no way to know unless you visit the premises or ask your realtor. Some states won't even let the history of the house be revealed. Sometimes, just googling the address will help. Maybe there was a meth lab next door.

 

It's also good to know that you can back out if the inspection finds something. So be sure to get a good one. Don't skimp on ten's of dollars what could cost you thousands.

 

Ghosts actually raise the prices.

 

Yeah the bank owned part we are familiar with. The sold house item is interesting because the one house my wife likes has been sold 3 times and each time it was owned for no more than 6 years at a shot. So it makes me wonder, I think our best bet is a walk through because I can't see anything else online that raises any red flags.

[The Poojer]

Just be vewwy vewwy quiet, better chance of bagging something

 

[Chef Jim]

How much lower than the comps percentagewise? Here in NorCal $15-25k difference may only be it needs a new front door. It could be many different reasons why as already mentioned. As far as why and how to find out I go with what's already been said. But first and foremost find a realtor who you trust and you KNOW is looking out for your best interest. Have them do the legwork as to why it's below market. That's whar you're paying them for. Whatever you do do NOT compromise to save yourself a few bucks. Remember this is the place you'll spend most of your time for the next several years and there is nothing worse than regretting a bad home purchase

[mrags]

How much lower than the comps percentagewise? Here in NorCal $15-25k difference may only be it needs a new front door. It could be many different reasons why as already mentioned. As far as why and how to find out I go with what's already been said. But first and foremost find a realtor who you trust and you KNOW is looking out for your best interest. Have them do the legwork as to why it's below market. That's whar you're paying them for. Whatever you do do NOT compromise to save yourself a few bucks. Remember this is the place you'll spend most of your time for the next several years and there is nothing worse than regretting a bad home purchase

great points chef. I'd also add this:

 

The selling realtor may have it priced low so that he can generate a bidding no war, in which case they usually end up making more than of the house was listed for the 15-25k more like it should have been.

Once you get 4-5 people bidding on the same property and want it, they will get lost in the fact they can find a similar house in the same neighborhood for less or the same price.

 

Also, look at it, and hire a good home inspector. They will be able to tell you if there's something truly wrong with the house.

[KD in CA]

Possible reasons for lower priced home:

 

1) Estate owns it and the executor wants to sell quick;

2) Owner is under water in debt and wants quick sale (see this a lot in a divorce or loss of a job);

3) Short sale (amount owed exceeds value so they want to get it sold);

4) Mechanical problem the owner can't fix;

5) Realtor doesn't know what they are doing and priced it too low;

6) Ghosts;

7) Was the site of a mass murder where there is still blood on the walls or ax handles in the bedroom door.

 

Yup.

 

The answer to your question is only a good realtor who really knows the market/house can give you the real answer. Unless of course you pay an inspector and discover it's an issue with the house.

 

Years ago I had two deals to buy houses end due to inspection finds; one was a septic issue, one a termite issue. Whatever you do, do your research and find a good inspector, and walk through the entire inspection with him asking any question you can think of. The inspection isn't just a box to be checked on the list, it's your chance to learn about the house you are buying.

 

As to #5, when my mother died I had two RE agents suggest listing prices that were almost $100,000 apart (~10%). There are a lot of RE agents out there who don't know **** about RE.

[plenzmd1]

This may not be of help up front, but god idea to ask the seller to provide before you make an offer on any property.

 

http://www.bankrate.com/finance/insurance/clue-report.aspx