"We had it inspected and it's in good structural shape"

"The house was built in 1950 and is in pretty bad shape. "

I think you should first decide if it's in good shape or bad shape.

I thought foreclosure homes you start with the amount listed. I am not a realtor though.

$28,000 is like buying a car, you can't go wrong with that price plus the structure is in good shape. You are buying a good spot.

Thanks for your good advice ncrealestateguy & summersrhythm!

It’s great you have such affordable options available to you. Here is what $595K can get you in my area:

http://www.kiro7.com/news/local/boarded-up-seattle-house-listed-as-hot-buy-for-595k/620762232

There are no $65K houses available here...the average price for a house increased by about $100K since last year.

So, to me, It’s hard to see how you can go wrong with that forclosure.

SaltiDawg-

It gets worse: I just checked on the listing...it’s 9 days since that article ran, and a sale is pending!

You can scroll down in the article for details. It is a teardown in a trendy area, which is why someone with money is willing to spend $600K for a 6000 sqft lot. But it’s not affordable here for most people buying a first home...median home price in Seattle is now about $3/4 million. I bought my first home here 40+ years ago for $45K...which was twice my annual salary at the time. I couldn’t begin to afford my current house if I hadn’t been able to profit from the huge runup in prices since then.

Think Seattle is bad, try Vancouver, 6 million will get u a tear down on roomy 6,000 Sq ft lot https://www.realtor.ca/Residential/Single-Family/18650815/656-MCGUIGAN-AVENUE-Vancouver-British-Columbia-V5Z2K8