Ok ...here is todays scenario of an offer I received about a week ago. Now just to let you know...this offer was presented and rejected by the seller offering no reason other than a chuckle. You see...I have this listing which is an REO and the sellers basically own the mortgage because the property went into foreclosure and an asset holding company now is the holder of the current mortgage.
It really doesn't have anything to do with the deal or the offer so here is how the story went.
I came into my office and see a 12 page fax. Before I can look at it further I started to get excited because when I receive a fax with that amount of pages my sixth sense tells me it is an offer on one of my listings! But this was becoming more unusual as it went along. First of all...no agent ever called me to let me know they were faxing me an offer and usually we get some sort of contact just confirm it...that didn't happen on this one.
So I start reading the contract and by the time I was half way down the first page the big red light went off. I continue to read and as I browse through it I noticed many things that I did not like to see. I'm just going to give you the basic facts and not the entire contract...only the important stuff. Just to let you know...this property is a 3 BR 2.5 Bth 1 car Gar. on a small lot in need of some TLC. Most foreclosed properties need work but this one was actually in pretty good shape from what I usually see in this situation with no upgrades and it is listed at $299,000.
At fair market value from my BPO it is generally worth between $330,000 to $360,000 in average shape. But because of lack of activity we priced low enough to attract buyers and out of 90 homes available on the market in this neighborhood it is the cheapest one. I know this because I lived there and have farmed the area for many years. But let's now get back to the offer.
The offer reads as follows...
Purchase price------------ $350,000
escrow deposit -------------- $2,000
other-gift of equity---------- $87,500
financing------------------- $262,500
cash to close------------ -$2,000 minus.."yes that is a minus sign"
AS-IS with right to inspect
Purchase price based on $260K net after these costs...buyer would pay any sellers closing costs above the $260K purchase price. Pre-approval letter was for $260K.
I would love to hear from Realtors®...mortgage pro's and appraisers with their opinions on this.
Read on-> ...it gets better.
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