Friday, August 09, 2013
After 8 weeks of waiting to hear back from the bank on my offer on the old Victorian short sale, they counter-offered at just over $4,000 over my offer. I attempted to counter, but the negotiator said there was no room to move because their investor said that's the number they needed to get from the property.
I had less than 48 hours to accept the offer and it expired yesterday at noon. Flurried phone calls and discussions with J. and the real estate agent, and much hmmmming and hawing. I couldn't even sleep Wednesday night because of the situation. $4k is just over 25% of my initial offer, so it's a huge increase. Comparable sold houses and active listings are all over the place, but I'm sure that's true for everywhere because of all the bank-owned foreclosures and short sales. What finally convinced me to go for it is the fact that properties in that price range go fast, because they're snapped up by investors who want to flip them into rental properties. There's a big probability that someone else would snap it up at that price since it would now be an "approved" short sale, and they wouldn't have to go through the waiting period that I did.
Given that the property was last financed back in 2005 for $105,500 and the owners still owe close to $80,000, the bank is taking a huge loss selling it at a price of $19,400. I'll have to squeeze the rehab budget to make up the extra purchase cost, but I'm pretty sure I can get close.
I signed the papers last night and we close on the 23rd. I'm so excited!!!!
Posted by CrankyPuppy at 7:04 AM