Good news! We finally got a counter offer on one of our REO properties that we made an offer on a little over a week ago. The home was listed for $72.5K and we offered $51K. They have countered at $70K which simply isn't going to cut it. The cool thing is though that the listing agent said they've been trying to sell this property for over 120 days now and they are motivated to get rid of it...apparently the asset manager told her not to lose me as a buyer and find out what we want. So we went to inspect the property today and did a quick repair estimate...looks like it needs about $10K worth of work. We believe the ARV is around $100-110K and we want to flip this thing to a rehabber so we aren't going to be willing or able to give them the $70K they want.
The property wasn't in horrible condition but it will need plenty of work...exterior painting (grafitti all over the carport), interior painting, carpeting, tons of cleaning, window glass replacement, and some drywall work. Oh and the bathroom was just plain nasty!!! But nothing that can't be addressed. Anyways, we're going to see exactly how motivated this bank is. If they don't like our counter to their counter ($56k) we'll just wait and see if it sits on the market for another week or two and then we'll resubmit. We'll see how it goes!
Oh...and my husband checked out that home in Hollywood...it needed a LOT of work...not sure we could even offer the woman the amount she owes on the place - $85K. We'll work the numbers but its not looking good for them and unfortunately they may end up in foreclosure. We just have to double check the comps in that area. We have someone who wants to invest in Hollywood or Miramar so hopefully we'll find something that works for him soon.
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2 comments:
I am TOO proud of the Byneses!!!!
Good for you, for getting a counter offer. If they're motivated to sell though... they counter offer didn't show it.
Remember us after you hit that 2nd or 3rd cool million!!!
I tell you - people saving folks from foreclosure are doing those folks a real service. The bank gets paid, the former home owner doesn't have to declare bankruptcy or owe tens of thousands... it makes sense for everyone involved.
Keep us posted with the posts! (bad pun intended.)
Bolaji, you're absolutely correct that they surely didn't seem motivated with the counter. We're testing it though...and we'll see what happens!
And its funny, but I've seen multiple articles on the web warning of investors who "take advantage" of homeowners..."skimming equity". But its all quite ridiculous because the alternative is to go into foreclosure and ruin your credit. Perhaps some investors have bad intentions and take advantage of folks, but generally purchasing the property is going to help the homeowners in the long run. And the kinder of investors are going to give the homeowners some cash and not take all their equity.
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