Hi All! You guys have been so helpful I just thought for anyone interested I would provide and update. If you read above you will see that the bank countered our $200,000 offer with $340,000. In response to that we came up to $210,000 and they came all the way down to $272,000! (Keep in mind our realtor determined the fair market value to be around $250,000-$260,000, so they are getting closer)
We still said, NO to $272,000 and were about to walk when... The bank then asked that we provide them with a cost assessment from our licensed contractor as to what we believed needed to be done to the home to make it livable and if it seemed reasonable they would order another BPO done.
No problem for us as we have already had 3 contractors and 1 architect take a look at it. Our contractor estimate $130,000....house is an old summer cottage...so the $130,000 includes new sidiing (one side of the house is down to Tyvek only), new roof, some foundation work, electrical upgrade and many many other things to get the house up to code...but NOT new kitchen or baths.
The bank ordered the new BPO and came back with $250,000. HA!!! We felt so vindicated! We had done our research and felt we knew the value. So, we went up to $220,000 and now we wait!!!
I believe the bank wants to net out at $225,000 so our offer is probably still to low for them AND, truthfully...$250,000 is probably fair...BUT we want that new kitchen and new baths and we need to but an addition on to make it big enough for our family so we probably can't go any higher price than where we are.
They have (obviously) postponed the forecloser (for the 3rd X!) and a new (4th) forecloser date is set for May. My guess and our realtors guess is the house will foreclose if they don't take our offer....which is a bummer...banks!!!
I don't know how you guys deal with all this Short Sale baloney!
I'll let you know if by a long shot we get it...in the meantime we keep looking.
Thanks - Britt
PS Comps should be from the last 3 months, The market has begun to shift and the banks prefer the comps to be in the last 3 months and no short sales where possible.
Also, we made our offer at the beginning of Oct. but the file was closed for several months due to inactivity on the sellers part (he was trying to file bankruptcy but did not qualify). The file was reopened and assigned to a new agent in early Feb. In a sense it has taken 2 months from the time the seller got his act together.
There was a BPO done back in Nov but based on what Jackie Kremer is saying I am guessing a new BPO was done in Feb or March when the file was re-opened.
There are 2 loans both with Wells Fargo the first is around $480,000 and the second is around $10,000...can't remember how I know this:). Total $490,000 owed. Listed $370,000. (FMV $250,000-270,000)Our offer $200,000. Banks counter $340,000. Our best and final $230,000. Our agent is presenting today. I'll let you know how it goes.
One more thing....does the bank take into consideration the length of time the home has been in default (almost 2 years).
Also, if you look at the comps from the last 6 months $300,000+ gets you a clean, move in ready home. This home needs a new roof, new siding, an electrical upgrade some foundation repair...not to mention the seller started to gut the kitchen. Home was never winterized and has broken windows...essentially a tear down. Makes you wonder if the people doing the BPO's actually get into the home.
I guess that's 2 more things!
Thanks for all the feedback...even if it isn't what I want to hear:)
RE/MAX Realty Group
We had 3 separate contractors out to look at it. One said it was a tear down and the other 2 gave us numbers around 150,000 - 170,000 to make it habitable again. I don't think even an investor with deep pockets would pay $300,000 for the property as other new builds in the community go for $450,000-500,000.....at least in the last year. We are the only offer in a year on the market and 1 of 3 people to look at it. I guess it is doomed for foreclosure then.
How would we keep tabs on it after they foreclose? We would want to purchase it as quickly as possible. Doesn't it sometimes take awhile for the banks to get properties back on the market?