In January of this year my wife and I found â€œthe houseâ€. A foreclosed cape cod in an excellent neighborhood, with an asking price of $54,900 and tax value of $88,000. After calling the listing agent, she simply gave us the lockbox combination over the phone, so we decided to go take a look. Within about 10 feet of the house the odor of pet emanated from the closed windows and doorsâ€¦ with noses pinched and mouths closed we continued on. We are no strangers to rehab and renovation, but this has always been for other family members. We are looking to purchase our first house, and figured the time is right because we have saved, and waited and intend to pay cash for our home.
Looking past all the cosmetic flaws and almost no structural problems we contacted our realtor to put an offer in for $40,000. According to the listing agent, even though the house had been on the MLS for about eight weeks, she received two additional offers the very same day as ours, and suggested we up our offer because Deutsche Bank would only take one. We held steady with $40K, since the house will require almost that much in work because of the damages to the kitchen, baths, and mechanical systems.
Three weeks later our $1000 earnest money was returned and we were told the bank had sold this property and several others in the region to another bank. So, that brings us to late March. We have kept an eye on the property, waiting for the new bank to list it again. Only to find out Deutsche never sold it, but simply listed it againâ€¦ now at $70,000!! I am no economist by any means, and marginally know about real estate. But, Iâ€™m fairly certain the foreclosed amount($114K) is off the bankâ€™s books by now as a loss. To date weâ€™ve done nothing else, just went on looking at other homes with less baggage.
The real question after all thisâ€¦ Is the new $70K asking price, just a way to get someone to pay closer to what the original asking price was of $55K, expecting people to put in lower offers in this market? Or something else Iâ€™m just not educated enough in this field to realize?