People with real estate knowledge:

[BridgeRunner]

Please tell me what might be going on with houses that are listed at absurdly low prices. If one is interested in such a house, how does one get an idea of actual asking price?

[wmenorr67]

Brad Johnson to the white courtesy phone!

[Jamisjockey]

Please tell me what might be going on with houses that are listed at absurdly low prices. If one is interested in such a house, how does one get an idea of actual asking price?

Most likely forclosures or auctions.  If they are auctions, that will be the auction starting price.

[vaskidmark]

"If the price is too good to be true, it probably is."

Caveat emptor.

There is a reason the price is absurdly low.  Besides getting a good structural/mechanical inspection, hire a tile crawler to go over the paperwork with an extra-fine tooth comb to be sure you get a clear and clean title.  And that there is no HOA.

And make repeated visits to the neighborhood at varying times of day and days of the week.  Check the local shopping areas as well.

Last but not least, check to see that the lawn is not composed of three-week old annual rye grass that can grow on a bare cinderblock.  There's nothing like finding out your baked clay ground will not support real vegetation.

stay safe.

[InfidelSerf]

Short sales are another reason for lower than normal prices. Besides the obvious fact that prices are just lower.
If you have stellar credit, can get a conventional loan, and have no rush to buy. Then short sales can be a good deal.
But for most of us normal folk they are to be avoided. IMHIO    (I-added for ignorant)

[red headed stranger]

I'm not sure exactly where in MI you are looking, but as you know the market is severely depressed in much of MI. 

Three years ago, my wife and I were faced with the Dilemma of moving to the Phoenix area or Mid-Michigan, as she had two job offers at the some time with her company.  Michigan was very tempting, as I was born is Owosso, and have lots of contacts there due to the fact that my family has a 100+ year old business there. 

My wife and I were amazed at the houses, which were thoroughly vetted by people we trust, that we could have simply bought outright with the cash we had saved up for a downpayment while we were living overseas. As you know, so many people in Mid-michigan are so unemployed or underemployed that even the modest prices are often too much. 

A friend of the family that is an attorney in the area who primarily deals with estates, wills, and trusts, informed us that nearly all the sales she is aware of have been VA loans, FHA loans, or land contracts.  Lots of folks don't have the jobs or the credit to get a loan.   My Grandmother passed away about 2 years ago, leaving two properties which my mother and uncle had a lot of trouble selling despite their desirable location and good condition of the homes. Eventually, one property, an older VA home, has been turned into a rental, and the other, a large victorian home near downtown was sold on contract for only about $65k.

[Scout26]

"If the price is too good to be true, it probably is."

Caveat emptor.

There is a reason the price is absurdly low.  Besides getting a good structural/mechanical inspection, hire a tile crawler to go over the paperwork with an extra-fine tooth comb to be sure you get a clear and clean title.  And that there is no HOA.

And make repeated visits to the neighborhood at varying times of day and days of the week.  Check the local shopping areas as well.

Last but not least, check to see that the lawn is not composed of three-week old annual rye grass that can grow on a bare cinderblock.  There's nothing like finding out your baked clay ground will not support real vegetation.

stay safe.

Quick reminder.  BR is one of our resident Tile-Crawlers, so she might save some money there.    But yes, home inspector.  Preferably two. with different specialties.  (Carpenter, electrician, structural engineer, etc).

I'm betting that what she's looking at is in the area where she's currently living, metro Detroit, so the bank(s) will probably give you a house if you promise to send in at least couch-cushion money on a monthly basis.   

But if there's one you have your eye on, contact the POC listed on the sign (or the ad, or foreclosure listing in the paper).

Good Luck !!!!

[Fitz]

Speaking of detroit. I'm going up there wednesday for two and a half weeks. Yay me. Unfortunately i'm being forced to fly. How do i know if my pistol case is TSA approved?

[Fitz]

Speaking of detroit. I'm going up there wednesday for two and a half weeks. Yay me. Unfortunately i'm being forced to fly. How do i know if my pistol case is TSA approved?

Never mind. According to XDtalk the factory case seems to work for most folks

[Perd Hapley]

It means the house is haunted.

1. Buy house.
2. Install cameras and microphones.
3. Option the footage.
4. Profit!!!

[Harold Tuttle]

any real deals are snapped up by the insiders ASAP

[coppertales]

I bought a Fannie mae house in MI last month.  I paid less than I did for my truck I bought last year.  Killer deal in the boonies near great fishing.....chris3

[Brad Johnson]

Where are these "absurdly low listing prices" seen?  If it's on an infomercial or some third-party website, it's bupkis.

Brad

[BridgeRunner]

MLS listings. Mostly via homes.com.

So far as neighborhood issues go, I'm looking in my parents'/sister's neighborhood. My family, if you count cousins and such, has a collective total of well over three centuries of experience with the neighborhood. 

So far as financing, I'm not. Thinking about either paying cash next summer or paying actual earned cash + free private loan (from local, non-family, non-gov org).  Possibly paying cash and then borrowing against the place for renovations, but would prefer to do that slowly, on my own, with minimal large cash outlays.  Obviously, that depends on the house.

Structural problems... Yeah. Fortunately, I know some people I trust for inspections.

Right now though, I'm just curious how one might follow through on learning a bit more about various offerings--preferably without big outlays of time or interacting with people, and thoughts on the idea in general.

And yeah, the too-good-to-be-true prices aren't. It's a very depressed market here. My aunt and uncle gave their house back to the bank (don't know the details there) when they inherited my grandmother's place. It sold last month for 24k. Sound house, no appliances, missing some cabinets, shabby interior, but sound, new windows/new roof. The buyers--who my mom knows--are happy with it. Three bedroom, nice yard, full basement, 1300 or so sq ft. 24k. Yeah.... I really want to get a house before the market improves.

[GigaBuist]

I'm not sure exactly where in MI you are looking, but as you know the market is severely depressed in much of MI. 

It's getting better!  BR getting a job moved the state total from 18 to 19 people.

WOO HOO!

[Brad Johnson]

If you want information on homes in a particular area, hook up with a reputable real estate agent.  They can pull you current information, not information that could be days, weeks, and sometimes months out of date on third-party web sites.  They can also get you "learned up" on current market information, lending issues, etc..  In most areas buyer's services are provided at no cost to the client.

Brad

[Scout26]

This will give you some idea as to how bad it is in Detroit.  And it hasn't gotten any better in the last 18 months.

http://www.businessinsider.com/the-mayor-of-detroits-radical-plan-to-bulldoze-one-quarter-of-the-city-2010-3

http://www.wilx.com/home/headlines/87054002.html

[coppertales]

Look at the Fannie Mae web site.  That is where I found my new house.  The regular real estate listings said it was not available but it was relisted.  chris3