Factoring repairs into REO purchase

Home Sale Hindsight

Q: I recently put in an offer of $125,000 on a foreclosed property that was listed for $140,000. My offer was countered at 140,000; I went back at $130,000 and asked for 6 percent toward closing. My agent stated that the bank’s final offer was $135,000 and 3 percent toward closing costs.

I declined the offer because, although the property was livable, it needed repairs. The master bath only had a commode — no sink or tub was installed. Two bedrooms needed ceilings put in, one other bath needed repairs and the basement had been framed, but no drywall.