3-bed, 2-bath, and 1496sf on a 7405sf lot. Recently rehabbed, this house is listed at $269,900.

My 4 Buying Rules are P-C-L-T: price, condition, location, and terms (in that order). When these four rules align in your favor you should consider investing in your next home.

This house is priced so wrong that the only remedy left is to make it right.

8 bigger houses, all bank-owned foreclosures, are available within a mile of this property. Their average asking price is $215,525.  That alone puts the present day value of this house at about $203,000. A 25% discount to the asking price!

But that’s not all you should consider.

It takes about 45 days to close. If the market continues to decline at 1.5%/mo. a fair offering price for this house would be about $199,000.

What do you think? Leave me a comment or send me an email.

P.S. Here’s are the MLS flyers for the comps used above. Don’t forget to check out our video FAQs that show you how to value and make offers on bank-owned foreclosures.