Making offers on abandoned properties - Posted by Chad (MD)
Posted by Chad (MD) on June 05, 2007 at 10:15:41:
I’ve recently started looking at properties other than listed properties. These are mainly abandoned. My question is, do I have to know the amounts owed to make an offer?
Say for example I contact an owner who agrees to sell. The ARV is $100k and repairs are $25k. Do I just agree on a price with the seller (say $30k) and fill out a purchase agreement?
What if he owes more than $30k? My agreement says the seller has to deliver a warranty deed, so does that mean the agreement is void if he can’t?
Should I do title search myself to get an indication that it’s a deal worth pursuing? Should I only look for deals with equity – or does it matter?
The other option I could see is getting a quit claim deed, but then I would become responsible for all encumberances on the property, right?
Sorry for such a simple question, but I’ve only dealt with listed properties, and this is a whole new market. I’m really confused but determined to work it out.
Thanks in advance,