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The property I'm looking to buy has an assessment of $74k for the land and building. The zipcode in which the home resides values houses at an average of $78k. The zEstimated value of the home is currently $63.5k and the home is listed on the market at $59.9k.

^ I'm not sure if the above information helps at all. Basically I want to know what to expect in terms of buying a house for the first time in terms of finances. Assuming I wouldn't need a mortgage, what would be a fair estimate as to how much out of pocket based on spending $59.9k?

Also, I know the market for homes is at an all time high since people can't afford their homes and foreclose, or simply move. Therefore since there are a lot of houses for sale on the market, what would be a fair offer to give the homeowner for their home? Is there any FatWallet tricks to save me any money in this process?

Any help/tips would be appreciated! Lots of green to those that help!

Member Summary

lack of inventory for one, multiple offers, sellers not budging, low appraisals

I would probably start off offering $55,000 but on a 59K home there may not be that much wiggle room in there. They'll probably counteroffer (Unless the house has only been on the market a few weeks) around $59k even and then you could come back at $58 which they'll probably accept.

As for the mortgage, just call a couple of mortgage companies and have them give you their best rates and estimates for how much you'll need down and such, depending on which kind of loan you get. Good Luck!

Don't forget seller contribution. I believe if you are going to live in it, it can be up to 6%. you can increase the price by 6% but get a downpayment of 14% instead of 20%.

I would start off at 10% below the asking price and figure on ending up somewhere from 3-5% below the asking price.

I'm saying I won't need a mortgage. What would a $59.9k home cost me out of pocket to be a done deal (estimate?). The house was for sale @ 65k for a year, than they dropped it to 62.5 in February, and than down to 59.9 in april. Any other advice?

Get a home inspection by a reputable company of *your* choosing. Other costs should really depend on where the house is located.

dlight1 said:   ... What would a $59.9k home cost me out of pocket to be a done deal (estimate?)....

So you're wanting to know how much the check will cost you total including both a $59.9k purchase price PLUS other closing costs but without having to get a mortgage?

It actually hard to say since the misc. fees, taxes, and other costs to buy a house vary a lot across the nation.

I'd estimate something in the $1000 to $5000 range for other misc costs. Probably closer to $1000 or $2000 ballpark. But again it varies. Some location have transfer fees, recording fees, you'll want to get an inspection, you ought to do a title search, you might have to pay a local 'transfer tax' which is basically just sales tax on house purchases. It varies widely.

You can always ask a local Realtor. They should be able to help you estimate total out of pocket costs for your area.

dlight1 said:   I'm saying I won't need a mortgage. What would a $59.9k home cost me out of pocket to be a done deal (estimate?).

Whatever price you negotiate to minus property taxes that haven't been collected on the property (assuming they are paid up-to-date).

Unless you are referring to needing a lawn mower, new appliances here and there, landscaping, etc.

I'm just referring to the actual property... appliances and such are separate

I'm trying to buy now too. Add inspection (mine was $325) property taxes vary by area. Mine are $900, the fee to your buyers agent if your agency has one )$195) termite inspection ($50) the others have mentioned title, and transfer fees and the Home warranty if you want it. Try to get the sellers to pay as much as possible

GOOD Inspections are the most important. My cute house that I've had an offer on for 2 weeks has a LOT of stuff that I didn't notice wrong before my inspection yesterday or couldn't see (crawlspace/attic) that needs to be fixed or I will walk.

Where can you buy a house for 60K? How old is this place?

siriusoracle said:   Where can you buy a house for 60K? How old is this place?older detroit suburbs, 1950s.

dlight1 said:   I'm saying I won't need a mortgage. What would a $59.9k home cost me out of pocket to be a done deal (estimate?). The house was for sale @ 65k for a year, than they dropped it to 62.5 in February, and than down to 59.9 in april. Any other advice?

You might also want to consider finding out why the property has been on the market that long for an increasingly lower price when lower mortgage rates have been spurring other people to buy. Unless issues like those don't matter in your situation?

House was built in 1921. It's 2 bedroom plus 4 room house. The reason I like it so much is because its a two lot property. So originally it was zoned for two houses, but somewhere down the road, nobody bought the other lot, so it was added to the main houses lot. Very hard to find in the city!

dlight1 said:   I'm saying I won't need a mortgage. What would a $59.9k home cost me out of pocket to be a done deal (estimate?). The house was for sale @ 65k for a year, than they dropped it to 62.5 in February, and than down to 59.9 in april. Any other advice?

Make sure they know the offer is all cash, and if it's unoccupied, suggest the deal close in two weeks.
I think I did a decent job of pricing a foreclosure as low as the seller would go. They listed it at 42k in November (about what it was worth in the condition it was in if it weren't a foreclosure), lowered it in December, and dropped it again to $30k in mid January (which had buyers looking at it 1-2 times a day). I offered the bank $25k cash and they took it.

You have somebody who has been sitting on a listing for a year and a half and wants to get rid of it, but doesn't want to come down more than they have to.
Their plan is to come down 2.5k at a time until it sells.
There was a two month interval between the last two price changes, so they're due for a drop to 57.5k. If you offer that now, they'll probably take it.
You can start the negotiations at 55k cash, but they'll probably counter at 57.5, then you can decide to increase your offer or hold tight. After a year and a half, their realtor won't want to let a cash buyer get away.

Now I know why it was listed at $59.9k and why it's been for sale so long. Firstly, the house is on the smaller side. On top of that, whoever had the siding/roof redone, only did the front half of the house. So the back half of the house has some cheap shingles and original siding in the back which is dry rotted. The upstairs windows are still the original which need replaced. The new deck that was built in 2009 was never furnished.. I realize wood needs cured, but a year should be fine. So three years of water on raw boards. So yeah, nice smaller house, but needs a lot of work.

jerosen said:   dlight1 said:   ... What would a $59.9k home cost me out of pocket to be a done deal (estimate?)....

So you're wanting to know how much the check will cost you total including both a $59.9k purchase price PLUS other closing costs but without having to get a mortgage?

It actually hard to say since the misc. fees, taxes, and other costs to buy a house vary a lot across the nation.

I'd estimate something in the $1000 to $5000 range for other misc costs. Probably closer to $1000 or $2000 ballpark. But again it varies. Some location have transfer fees, recording fees, you'll want to get an inspection, you ought to do a title search, you might have to pay a local 'transfer tax' which is basically just sales tax on house purchases. It varies widely.

You can always ask a local Realtor. They should be able to help you estimate total out of pocket costs for your area.


For $59.9k, I think your closing cost should be way lower than $1000. You should examine every fee and know what it's for and why. Challenge the fee if it doesn't make sense. For example, they took off the courier fee after I told them that I'm a cash buyer and don't have any loan document to courier to the bank. They told me that all the fees were from a standard template. The only legit fee you should have is the escrow fee, and even that is negotiable in a foreclose sale.



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