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The house next door

Long story short… next door neighbor aged out and had to go into assisted living, the house now needs to be sold to fund her care. Her adult son has been cleaning it up for the past 9+ months and is finally ready to list it. Kicker is… it was built in the early 1960s on a monolithic slab that’s heaved over the years; cinder block construction on the slab means that The house has significant structural damage, water line and sewer damage, and looks ready to fall down. I have a solid construction background, and this was confirmed by the son when they brought a realtor out some months ago to go over it.

It’s my desire to purchase the house (aka lot) and build a new house on it for myself. From what I’ve heard they’re trying to use comps from the recent neighborhood sales, however these were all sizable homes and not falling down. The Denver metro area prices has been nuts, but there are quite a few homes in this area sitting longer and longer. Supposedly they’re going to ask for 385k.

Unimproved value according to the county is 261k. I’m assuming another buyer would have a hard time actually borrowing money to buy a place like this correct? As in would lenders lend on something falling into the ground? I have familial support and don’t need to borrow to purchase or build. Also zoning is relatively restrictive, as in maybe a duplex at the most would be allowed.

Sorry for the format, its on mobile

TL;DR - I want to buy my neighbors house that’s about to fall down, and they’re asking dumb money. Being that I have the funds, do I offer a more realistic chunk of change if it does get listed and sits?

submitted by /u/Moose_knuckle69
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source https://www.reddit.com/r/RealEstate/comments/1jkxpru/the_house_next_door/

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