ᐅ Buying a House at a Foreclosure Auction – What Is a Realistic Price?
Created on: 10 Jan 2020 08:07
M
Maddy86
Good morning,
We are considering buying a house built in 1960. The current owner purchased it two years ago through a foreclosure auction. The market value at that time was stated as 75,000, but he won the auction for 100,000. Afterwards, he apparently paid off a mortgage of 45,000 that was still registered on the property.
If he were to sell it now, he would have to receive around 200,000 because of the taxes he would have to pay (due to the mortgage). After six years, this would likely no longer apply.
Is this all correct? Unfortunately, we have no experience with this! Are there other options? The amount of 200,000 would exceed our budget and seems quite high to us.
Best regards, Martin
We are considering buying a house built in 1960. The current owner purchased it two years ago through a foreclosure auction. The market value at that time was stated as 75,000, but he won the auction for 100,000. Afterwards, he apparently paid off a mortgage of 45,000 that was still registered on the property.
If he were to sell it now, he would have to receive around 200,000 because of the taxes he would have to pay (due to the mortgage). After six years, this would likely no longer apply.
Is this all correct? Unfortunately, we have no experience with this! Are there other options? The amount of 200,000 would exceed our budget and seems quite high to us.
Best regards, Martin
kaho674 schrieb:
No, prices have tripled in recent years. In our area, they have even quadrupled. Of course, this can vary regionally. Exactly for that reason, we would move from the town with 7,000 inhabitants to the village with 750 residents. Town = €125/m² (about $13 per ft²), village = €25/m² (about $2.60 per ft²)… That’s a difference of roughly €80,000 (about $87,000) for a plot of land.
I can live without having a bakery (on Sundays a sales truck comes), butcher shop, supermarket, etc. I’m willing to drive 5 km (3 miles).
kaho674 schrieb:
But the reference value listed in some old file from years ago is useless. What matters are the current prices in the region, for example on sales portals. That’s where you can really see the trend. The prices are current; just accept that. Comparable properties simply don’t exist because there’s nothing on the market.
In the next village, there is one listed for €149,000 (about $162,000), from 1977, with a slightly smaller plot.
kaho674 schrieb:
So, are there really no properties left to buy in the middle of nowhere? We actually have a similar plot available in Saxony, just in case it doesn’t work out...You are lucky in Saxony. Where I am, I know plenty of villages that unfortunately no longer have the small local grocery stores they used to. But there is still a pub and amateur league football... If your “villages” are so well equipped, then I know where the solidarity tax ends up...
Maddy86 schrieb:
You’re lucky in Saxony. I know plenty of villages around here where the small local shops like the old “corner stores” no longer exist. But at least there’s a pub and amateur league soccer...
So now I know where the solidarity surcharge is going...I can’t really relate. We also live in a remote village with no shopping options at all. We don’t even have a soccer club. So why are we considered lucky? And what does that have to do with the solidarity surcharge? ops:kaho674 schrieb:
What do you mean, there’s already nothing left to buy in the middle of nowhere? What was that referring to?
Maddy86 schrieb:
What was that referring to? To this:
Maddy86 schrieb:
There simply aren’t any comparable properties since nothing is on the market. In inexpensive areas, this is rather rare, and it’s quite surprising that even there there are so few listings that you can no longer find anything on the portals.