Update on Bank-Owned Properties in Charleston

There has been a recent frenzy of activity in the purchase of bank-owned homes.  The majority of them that have come on the market have multiple offers and are under contract within a week or so.  The banks are getting smarter about pricing them to sell – those that have been languishing on the market are few and far between.  Here are three that came on the market and went under contract in the past few weeks, all of which I have seen with clients of mine.

  • 3 Sutherland Ave – 7 offers – asking price of $260,000.  My bet is that it will sell for above that. Details: 3 SUTHERLAND AVE, CHARLESTON, SC – $260,000
  • 35 Carolina St – multiple offers.  This house came on the market at midnight on a Saturday July 24.  By Sunday at 10AM there were already two offers. Details: 35 CAROLINA ST, CHARLESTON, SC – $164,900
  • 127 Fishburne St – multiple offers, at least three that I know of.  Details: 127 FISHBURNE ST, CHARLESTON, SC – $127,900

So how do you position yourself to buy a bank-owned property?

  1. If you have to finance it, have it ready to go and be able to put an impressive amount down.
  2. If you have cash, provide proof of funds.
  3. Set a quick close date so the bank doesn’t have to bear the carrying costs longer than necessary.
  4. Make it contingent only on inspection.
  5. Make a solid offer – if you are putting in an offer after the house has only been on the market a few days, you can bet others are too.  Make it your best offer, right up front, whether that be full price or even above it.

Up for auction next:

32 Rutledge Ave 7BR/6.5BA – Judgement of $1,088,555.  This is a a huge Victorian overlooking Colonial Lake.  Depending on how much the bank asks for at auction, it might actually go to a bidder since there are very few million dollar homes on the market in Harleston Village right now and houses on the lake are few and far between.  It has a main house and two rental income apartments.

166 Smith St 3BR/2.5BA – Judgement of $591,872.  This home is one of the new construction homes in Morris Square.  I think this one will go back to the bank before it comes back on the market.

235 Ashley Ave 4BR/2BA – First bid of $105,651. A first bid means you can have it for $100 over asking, that is if no one else is bidding on it as well.  I think it will go to someone who will fix it up and turn it into a CofC or MUSC rental.

105 Smith St 3BR/1BA – First bid of $291,400.  Now don’t get excited about this little house for so little money in a great location. It is actually under contract right now and they’ve got a little less than a month to close before it goes up for auction.

One to keep your eye on if that’s your kind of house.

At one point 147 Mary Ellen Drive in Longborough was on the market for $2,499,000 but it has gone back to the bank for $865,876.   This home is 5,300 sq ft with Ashley River views and a rooftop terrace.  My bet is that it comes back on the market for $949,000.

147 Mary Ellen Drive

So what do you think?  Is there a special kind of ‘deal’ that you are looking for?  If you want to read more in this series I have been doing, click the links below

Post from December 18, 2009

Post from August 12, 2009

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