Can you relate to this story?Â In June of 2011 I showed a REO property to a client, the property had an asking price of $240,000 and was located in Roscoe Village/West Lakeview.Â My buyer immediately said he wanted to own this property, and asked for my input in makingÂ an offer that would take the property.Â We paid for an inspection which was done before the offer was written, so there was no inspection contingency, and the offer was written as is, and all the terms that the listing agent had in an REO addendum were signed and acceptable to the buyer as well.Â The buyer had a preapproved mortgage with 40% down for financing and a closing date of 30 days or less by mutual agreement.Â The offer price was $320,000. ($80,000 over asking price) and the previous owner that was foreclosed on had a mortgage of $560,000, so I wasn't worried about the home appraissing for $320,000.Â Low and behhold, I see the property sold for $285,000 which was cash on today's hotsheet.Â $35,000 less than my buyer had offered, with the only difference I can see being a cash offer for the $285,000 and a 40% down pre approved mortgage for the $320,000 (with no other contingencies).Â
Every day we read about lower property sales and declining prices in Chicago.Â Does anyone besides me believe we are seeing declining values by poor offer presentation to the banks and maybe even a non presentation of an offer?Â If I owned a house on that block and my value was affected by the lower sale I wouldn't be happy to hear about this.Â Not much I can do about this situation, but I am certainly questioning if offers are being presented, and who are these decision makers at the banks or freddie and fannie who are chosing offers that really arent what is best for their client?Â Just wondering if anyone else is wondering how this is happening.
Please comment if you have an opinion.
Earl B. Ruthman